Established Covered Calls Position in Devon Energy Corp.

Yesterday, a covered calls position was established in Devon Energy Corp. (ticker symbol DVN) with a Jun2017 expiration.  This covered calls position includes consideration of the upcoming $.06 quarterly dividend on June 13th. Given the Covered Calls Advisor's current Slightly Bearish overall market outlook, an in-the-money covered calls position was established with the strike price of $36.00 (below the stock purchase price of $37.45).

As detailed below, a potential return is +1.8% absolute return in 24 days (equivalent to a +27.8% annualized return-on-investment) which is above the Covered Calls Advisor's minimum desired return-on-investment of 20.0%.

Devon Energy Corp. (DVN) -- New Covered Calls Position

The transactions were as follows:
05/25/2017  Bought 500 Devon Energy Corp. shares @ $37.45
05/25/2017 Sold 5 DVN Jun2017 $36.00 Call options @ $2.10
Note: this was a simultaneous buy/write transaction.
06/13/2017 Ex-dividend of $30.00 ($.06 x 500 shares)

A possible overall performance result (including commissions) would be as follows:
Bought 500 shares DVN: $18,729.95
= $37.45*500 + $4.95 commission

Net Profit:
(a) Options Income: +$1,041.80
= ($2.10*500 shares) - $8.20 commissions
(b) Dividend Income: +$30.00
= $.06 * 500 shares
(c) Capital Appreciation (If DVN is above $36.00 strike price at Jun2017 expiration): -$729.95
= ($36.00-$37.45)*500 shares - $4.95 commissions

Total Net Profit (If DVN stock is above $36.00 strike price at Jun2017 options expiration): +$341.85
= (+$1,041.80 options income +$30.00 dividends -$729.95 capital appreciation)

Absolute Return: +1.8%
= +$341.85/$18,729.95
Annualized Return: +27.8%
= (+$341.85/$18,729.95)*(365/24 days)

The downside 'breakeven price' at expiration is at $35.29 ($37.45 - $.06 -$2.10), which is 5.8% below the current market price of $37.45.