Established Covered Calls Position -- Halliburton Co.

Today, a new covered calls position was established in Halliburton Co.  (Ticker Symbol HAL).  This Halliburton position was established at the $40.00 strike price and with a Jan2015 options expiration.  As shown below, this investment will provide a +3.2% absolute return in 37 days (which is equivalent to a +31.6% annualized return) if Halliburton stock closes at its current price of $37.59 at options expiration on Jan 16th.
The details of the associated transactions and two potential return-on-investment results are as follows:

1. Halliburton Co. (HAL)
The transactions were as follows:
12/12/2014 Bought 300 HAL shares @ $37.59
12/12/2014 Sold 3 HAL Jan2015 $40.00 Call Options @ $1.30
Note: the price of HAL was $37.59 today when these options were sold.

A possible overall performance result (including commissions) for these Halliburton covered calls is as follows:
Stock Purchase Cost: $11,285.95
= ($37.59*300+$8.95 commission)

Net Profit:
(a) Options Income: +$378.80
= 300*$1.30 - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If HAL unchanged at $37.59 at Jan2015 options expiration) = -$8.95
= ($37.59-$37.59)*300 - $8.95 commissions; OR
(c) Capital Appreciation (If HAL assigned at $40.00) = +$714.05
= ($40.00-$37.59)*300 - $8.95 commissions

Total Net Profit (If HAL unchanged at $37.59 at Jan2015 options expiration): +$361.85
= (+$370.80 +$0.00 -$8.95); OR
Total Net Profit (If HAL assigned at $40.00): +$1,084.85
= (+$370.80 +$0.00 +$714.05)

1. Absolute Return (If HAL unchanged at $37.59 at Jan2015 options expiration): +3.2%
= +$361.85/$11,285.95
Annualized Return If Assigned (ARIA): +31.6%
= (+$361.85/$11,285.95)*(365/37 days); OR
2. Absolute Return if Assigned (at $40.00 strike price): +9.6%
= +$1,084.85/$11,285.95
Annualized Return If Assigned (ARIA): +94.8%
= (+$1,084.85/$11,285.95)*(365/37 days)

The downside 'breakeven price' at expiration is at $36.29 ($37.59 - $1.30), which is 3.5% below the current market price of $37.59.
The 'crossover price' at expiration is $38.89 ($37.59 + $1.30). This is the price above which it would have been more profitable to simply buy-and-hold HAL stock until January 16th (the Jan2015 options expiration date) rather than establish this covered calls position.