Continuation of Covered Calls Position in Metlife Inc.

Last Friday, Metlife stock closed at $45.94 which was below the $46.50 strike price.  Today, the Covered Calls position was continued by selling 5 September 21, 2018 $47.50 Call options at $.52 when the price of MET was $46.37 per share.  

As detailed below, two potential outcomes for this investment are:

• +2.1% absolute return-on-investment (equivalent to +6.3% on an annualized basis) over the 121 days investment period if the stock closes unchanged at $46.37 on the Sept 21st options expiration date; OR
• +4.5% absolute return-on-investment (equivalent to +13.7% on an annualized basis) over the 121 days investment period if the stock closes above the $47.50 strike price on the Sept 21st 15th options expiration date.

Metlife Inc. (MET) -- New Covered Calls Position

The transactions details to-date have been as follows:
05/25/2018 Bought 500 MET shares @ $47.63
05/25/2018 Sold 5 MET June 15, 2018 $47.50 Call options @ $.99
Note: a simultaneous buy/write transaction was executed.
06/15/2018 5 MET 6/15/2018 $47.50 Call options expired with stock price below the strike price
08/03/2018 Ex-dividend of $.42 per share
08/06/2018 Sold 5 MET 8/17/2018 $46.50 Call options @ $.33
08/17/2018 5 MET 8/17/2018 $46.50 Call options expired
Note: the price of MET stock was $45.94 upon options expiration
08/20/2018 Sold 5 MET 9/21/2018 $47.50 Call options @ $.52
Note: the price of MET stock was $46.37 when these Calls were sold

A possible overall performance result (including commissions) for this MET Covered Calls position is as follows:
Stock Purchase Cost Basis: $23,328.30
= ($47.63 -$.99) *500 shares +$8.30 commission

Net Profit:
(a) Options Income: +$903.40
= ($.99 +$.33 +$.52) *500 shares - $16.60 commissions
(b) Dividend Income: +$210.00
= $.42 per share x 500 shares

(c) Capital Appreciation (If price of Metlife stock is unchanged at $46.37 at Sept 21st options expiration date): -$634.95
=+($46.37-$47.63)*500 - $4.95 commission; OR

(c) Capital Appreciation (If price of Metlife stock is above $47.50 strike price at Sept 21st options expiration date): -$69.95
=+($47.50-$47.63)*500 - $4.95 commission

1. Total Net Profit (If price of Metlife stock is unchanged at $46.37 at Sept 21st options expiration date): +$478.45

= (+$903.40 +$210.00 -$634.95); OR

2. Total Net Profit (If price of Metlife stock is above $47.50 strike price at Sept 21st options expiration date): +$1,043.45

= (+$903.40 +$210.00 -$69.95)

1. Absolute Return (price of Metlife stock is unchanged at $46.37 at Sept 21st options expiration date): +2.1%

= +$478.45/$23,328.30

Annualized Return: +6.3%

= (+$425.05/$23,328.30)*(365/119 days); OR

2. Absolute Return (If price of Metlife stock is above $47.50 strike price at Sept 21st options expiration date): +4.5%

= +$1,043.45/$23,328.30

Annualized Return: +13.7%

= (+$1,043.45/$23,328.30)*(365/119 days)