Closed Covered Calls Position in Morgan Stanley

At the May options expiration last Friday, the Covered Calls position in Morgan Stanley expired with the stock price below the $37.50 strike price. Today, the price of Morgan Stanley spiked higher along with the overall stock market and the Covered Calls Advisor decided to sell the 300 shares in the Covered Calls Advisor Portfolio. You might recall that this Covered Calls position was initiated at the May 15th, 2020 $35.00 strike price and when Morgan Stanley shares had increased beyond $40.00 per share, a decision was made to roll up the short Calls to the $37.50 strike price and with the same May 15th expiration date.

As detailed below, the return-on-investment result for this Morgan Stanley Covered Calls position was +11.9% absolute return in 32 days (equivalent to a +136.1% annualized return-on-investment).  


Morgan Stanley (MS) -- Covered Calls Position Closed Out
The transactions were:
04/16/2020 Bought 300 Morgan Stanley shares @ $37.23
Note: this stock price was down 3.0% from yesterday's closing price (and the Dow was down about 200 points) this morning when this transaction executed.
04/16/2020 Sold 3 Morgan Stanley 5/15/2020 $35.00 Call options @ $3.73
Note: a simultaneous buy/write transaction was executed and the Implied Volatility of the MS 5/15/2020 $35.00 Call options that were sold was substantially higher at 58.9 than the current CBOE S&P 500 Volatility Index (VIX) at 41.7 (which continues to also be very high relative to its historic average around 16).
04/28/2020 Bought-to-Close 3 MS 5/15/2020 $35.00 Call options @ $5.16 per share
04/28/2020  Sold-to-Open 3 MS 5/15/2020 $37.50 Call options @ $3.09 per share
Note: this was a simultaneous roll up transaction
04/29/2020 Quarterly ex-dividend of $.35 per share x 300 shares
05/15/2020 Three MS 5/15/2020 $37.50 Call options expired with the stock price at $37.29, below the $37.50 strike price.  So the 300 shares of MS remained in the Covered Calls Advisor Portfolio.
05/18/2020 Sold the 300 shares of MS at $39.23 per share.

The overall performance result (including commissions) for this Morgan Stanley Covered Calls position was as follows:
Covered Calls Cost Basis: $10,052.01
= ($37.23 - $3.73) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$493.98
= ($3.73 - $5.16 + $3.09) * 300 shares - $4.02 commissions
(b) Dividend Income: +$105.00
= ($.35 dividend per share x 300 shares)

(c) Capital Appreciation (Morgan Stanley shares sold at $39.23 per share): +$600.00
+($39.23 - $37.23) * 300 shares

Total Net Profit: +$1,198.98

= (+$493.98 +$105.00 +$600.00)

Absolute Return on Investment: +11.9%

= +$1,198.98/$10,052.01

Annualized Return: +136.1%

= (+$1,198.98/$10,052.01)*(365/32 days)