Established Covered Calls Position in Goldman Sachs Group Inc.

Today, a Covered Calls position was established in Goldman Sachs Group Inc. (ticker symbol GS) with a June 21st, 2019 expiration and at the $190.00 strike price.  This position has an upcoming quarterly ex-dividend on May 29th of $.85 per share which is included in the calculations below.  Given the Covered Calls Advisor's current Slightly Bearish overall market outlook, an in-the-money Covered Calls position was established.

As detailed below, a potential return-on-investment result is +1.7% absolute return in 31 days (equivalent to a +20.1% annualized return-on-investment).


Goldman Sachs Group Inc. (GS) -- New Covered Calls Position
The transactions were:
05/22/2019 Bought 200 GS shares @ $196.54
05/22/2019 Sold 2 GS June 21, 2019 $190.00 Call options @ $8.92
Note: a simultaneous buy/write transaction was executed.
05/29/2019 Upcoming quarterly ex-dividend of $.85 per share

A possible overall performance result (including commissions) for this GS Covered Calls position are as follows:
Covered Calls Cost Basis: $37,528.95
= ($196.54 - $8.92) * 200 shares +$4.95 commission

Net Profit:
(a) Options Income: +$1,782.66
= ($8.92 *200 shares) - $1.34 commissions

(b) Dividend Income (If GS assigned at June 21st, 2019 expiration): +$170.00
= ($.85 dividend per share x 200 shares)

(c) Capital Appreciation (If GS assigned at expiration): -$1,312.95
+($190.00 - $196.54) * 200 shares - $4.95 commissions

Total Net Profit (If GS assigned at $190.00 at June 21st options expiration): +$639.71

= (+$1,782.66 +$170.00 -$1,312.95)

Absolute Return: +1.7%

= +$639.71/$37,528.95

Annualized Return: +20.1%

= (+$639.71/$37,528.95)*(365/31 days)