Established Covered Call Weekly in Wynn Resorts Ltd.

Today, a new Covered Calls positions was entered in Wynn Resorts Ltd. (ticker symbol WYNN) for the November 17th, 2017 options expiration and at the $152.50 strike price when the stock was at $153.90.  The Covered Calls Advisor normally establishes monthly positions, but this is a weekly position that expires this Friday.  The transactions and a potential result for this position described below includes the $.50 ex-dividend tomorrow.  Based on the Covered Calls Advisor's current Neutral sentiment, the closest in-the-money position was established.

As detailed below, a potential return-on-investment is +0.7% absolute return in 4 days (equivalent to a +63.1% annualized return-on-investment).

Wynn Resorts Ltd. (WYNN) -- New Covered Calls Position
The transactions were as follows:
11/14/2017 Bought 100 shares of Wynn Resorts stock @ $153.90 per share 
11/14/2017 Sold 1 WYNN Nov. 17th, 2017 $152.50 Call option @ $2.00 per share
Note: this was a simultaneous Buy/Write transaction with relatively good options liquidity of 1,754 open interest contracts.  The implied volatility of the Call options was 17.9 when this position was established. 


A possible overall performance result (including commissions) would be as follows:
Covered Calls Cost Basis: $15,195.62
= ($153.90 - $2.00)* 100 shares + $5.62 commissions

Net Profit Components:
(a) Options Income: +$200.00
= ($2.00* 100 shares)
(b) Dividend Income: +$50.00
= $.50/share * 100 shares 
(c) Capital Appreciation (If WYNN stock is above $152.50 strike price at Nov 17th expiration): -$144.95
= ($152.50 -$153.90)* 100 shares - $4.95 commission

Total Net Profit: +$105.05
= (+$200.00 options income +$50.00 dividend income -$144.95 capital appreciation)

Absolute Return: +0.7%
= +$105.05/$15,195.62
Equivalent Annualized Return: +63.1%
= (+$105.05/$15,195.62)*(365/4 days)


The downside 'breakeven price' at expiration is at $151.40 ($153.90 - $.50 - $2.00), which is 1.6% below the current market price of $153.90.