Rolled Out Covered Calls Position in Best Buy Inc.

This morning, when the price of Best Buy dipped to about $54.30, the Covered Calls Advisor rolled out from today's (i.e. Nov 17th) $52.50 strike price Covered Calls to the Dec 15th Covered Calls at the identical $52.50 strike price.  This was done with only about $.05 time value remaining in the November Call options and a net credit in the rollout of $.76 per share was achieved ($2.68 income for December 15th Calls sold minus $1.92 debit for Nov. 17th Calls bought-to-close).  Based on the Covered Calls Advisor's current market overall Neutral sentiment, a moderately in-the-money position was established.

As detailed below, a potential return-on-investment result for this Best Buy position is +5.3% absolute return for 51 days (equivalent to a +37.8% annualized return-on-investment).  


Best Buy Inc. (BBY) -- New Covered Calls Position
The implied volatility of the Call options was 25.6 today when this position was established. 
The transactions were as follows:
10/25/2017 Bought 400 shares of Best Buy stock @ $55.11 per share 
10/25/2017 Sold 4 Best Buy November 17th, 2017 $52.50 Call options @ $4.23 per share
Note: this was a simultaneous Buy/Write transaction
11/17/2017 Bought-to-Close 4 Nov 17th $52.50 Call options @ $1.92 per share
11/17/2017 Sold -to-Open 4 Dec 15th, 2017 $52.50 Call options @ $2.68 per share
Note: this was a simultaneous Net Credit transaction of $.76 when the BBY stock was at $54.30.
12/05/2017 Upcoming ex-dividend of $.34 per share


A possible overall performance result (including commissions) if Best Buy is in-the-money at the Dec 15th expiration would be as follows:
Covered Calls Original Cost Basis: $20,359.63
= ($55.11 - $4.23)* 400 shares + $7.63 commission

Net Profit Components:
(a) Options Income: +$1,988.37
= ($4.23 - $1.92 + $2.68) * 400 shares) - $7.63 commissions
(b) Dividend Income: +$136.00
= $.34 per share * 400 shares
(c) Capital Appreciation (If BBY stock is above $52.50 strike price at Dec 15th expiration): -$1,048.95
= ($52.50 -$55.11)* 400 shares - $4.95 commission

Total Net Profit: +$1,075.42
= (+$1,988.37 options income +$136.00 dividend income -$1,048.95 capital appreciation)

Absolute Return: +5.3%
= +$1,075.42/$20,359.63
Equivalent Annualized Return: +37.8%
= (+$1,075.42/$20,359.63)*(365/51 days)