Covered Call Position Established in Alphabet Inc.

A new Covered Call position has been established in Alphabet Inc. (ticker GOOGL) with a June 19th, 2020 options expiration date. One Alphabet Call option was sold at $53.54 at the $1,375.00 strike price when the stock price was $1,402.57.  A moderately in-the-money strike price was chosen because of the Covered Calls Advisor's Bearish Overall Market Meter outlook.

As detailed below, the potential return-on-investment result is +1.9% absolute return in 24 days (equivalent to a +29.3% annualized return-on-investment).  

Alphabet Inc.(GOOGL) -- New Covered Call Position

The transaction was as follows:
05/27/2020 Bought 100 shares of Alphabet Inc. stock @ $1,402.57 per share 
05/27/2020 Sold 1 Alphabet Inc. June 19th, 2020 $1,375.00 Call option @ $53.54 per share
Note: this was a simultaneous Buy/Write transaction.  The Implied Volatility of the Call option was 26.2 and the Open Interest was 3,121 contracts when this transaction was executed. 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $134,903.67
= ($1,402.57 - $53.54) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$5,354.00
= ($53.54 * 100 shares)
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $1,375.00 strike price at June 19th expiration): -$2,757.00
= ($1,375.00 - $1,402.57) * 100 shares

Total Net Profit: +$2,597.00
= (+$5,354.00 options income +$0.00 dividend income -$2,757.00 capital appreciation)

Absolute Return: +1.9%
= +$2,597.00/$134,903.67
Equivalent Annualized Return: +29.3%
= (+$2,597.00/$134,903.67)*(365/24 days)

The downside 'breakeven price' at expiration is at $1,349.03 ($1,402.57 - $53.54), which is 3.8% below the current market price of $1,402.57.