Continuation of Delta Air Lines Inc. Covered Calls Position

Today, the Covered Calls position in Delta Air Lines Inc. (ticker DAL) was continued by selling 4 June 15th, 2018 $55.00 Call options against the existing 400 shares of Delta stock.  Airline stocks have declined as oil prices have increased in recent weeks; and Delta is no exception -- having declined in price by about $4 since it was purchased in January.  However, the Covered Calls Advisor remains confident in Delta's management and business prospects so will continue this Covered Calls position by selling Call options against the long stock position and thereby continue to reduce the breakeven price so that a modest profit is achieved from this position.  
A potential result for this Delta position is for a +2.4% absolute return over 143 days (equivalent to a +6.1% annualized return-on-investment) if Delta closes above the $55.00 strike price on the June 15th expiration date.  


Delta Air Lines Inc. (DAL) -- Continuation of Covered Calls Position

The detailed transactions and calculations are as follows:
01/23/2018  Bought 400 Delta Air Lines Inc. shares @ $59.63
01/23/2018 Sold 4 DAL Mar 16, 2018 $57.50 Call options @ $3.48
Note: this was a simultaneous buy/write transaction.
02/21/2018 $.305 ex-dividend per share
03/16/2018 4 DAL Mar 16th $57.50 Call options expired
03/29/2018 Sold 4 DAL Apr 20, 2018 $57.50 Call options @ $.77 per share
Note: the price of DAL was $55.21 when these Call options were sold
04/20/2018 4 DAL Call options expired with stock price below strike price 
05/10/2018 $.305 ex-dividend per share
05/22/2018 Sold 4 DAL June 15, 2018 $55.00 Call options @ $1.17 to continue Delta Covered Calls position
Note: the price of Delta stock was $54.60 when these Calls were sold

A possible overall performance result (including commissions) would be as follows:
Cost Basis Purchase of 400 shares DAL: $22,467.63
= ($59.63 -$3.48)*400 shares + $7.63 commissions

Net Profit Components:
(a) Options Income: +$2,152.74
= ($3.48 + $.77 + $1.17) *400 shares - 2*$7.63 commissions
(b) Dividend Income: $244.00
= $.305 per share x 400 shares x 2 dividend payments
(c) Capital Appreciation (If DAL stock closes above $55.00 strike price at expiration) : -$1,856.95
= ($55.00 -$59.63)* 400 shares - $4.95 commission

Net Profit Potential:
If Delta shares assigned on June 15th options expiration date: +$539.79
= (+$2,152.74 options income +$244.00 dividend income -$1,856.95 capital appreciation)

A Potential Return-on-Investment Result:
If DAL stock price is above $55.00 strike price at June 15th, 2018 options expiration date:
Absolute Return : +2.4%
= +$539.79/$22,467.63
Equivalent Annualized Return: +6.1%
= (+$539.79/$22,467.63)*(365/143 days)