Early Assignment of Bank of America Corp. Covered Calls

This morning the Covered Calls Advisor was notified by Schwab that the four Bank of America Corp. September 11th, 2020 $24.50 Call options were exercised early on the day prior to today's (September 3rd) ex-dividend date. There was no time value remaining in the Call options, so the owner of the Calls decided to exercise their right to buy the 400 shares of BAC at the $24.50 strike price and capture today's $.18 dividend.  This is a not an unfavorable outcome for the Covered Calls Advisor -- in fact it is a good outcome since the +35.6% annualized return-on-investment (aroi) achieved is slightly better than the +32.7% maximum possible aroi that might have been achieved later at the options expiration date if the stock was still the $24.50 strike price on the September 11th options expiration date.  As detailed below, a net profit of $76.00 was achieved in 8 days since the full $540.00 income (profit) received from selling the options exceeded the $464.00 loss in the stock price.

For any Covered Calls position where there is an ex-dividend date prior to the options expiration date, the Covered Calls Advisor usually prefers to have the stock called away (assigned) early, normally the last business day prior to the ex-div date.  The reason is that the Covered Calls Advisor's Dividend Capture Strategy spreadsheet was designed to identify positions where the aroi from early assignment is greater than what might be achieved if the stock is instead assigned at the options expiration date -- see items #8 and #9 below.  Note: this is the spreadsheet that was completed on August 26th prior to transacting this Bank of America Covered Calls position.

Bank of America Corp. (BAC) -- Covered Calls Position Closed by Early Assignment

The buy/write transaction was as follows:
08/26/2020 Bought 400 shares of Bank of America Corp. stock @ $25.66 per share 
08/26/2020 Sold 4 BAC Sept 11th, 2020 $24.50 Call options @ $1.35 per share
Note: The Open Interest in these Calls was 241 contracts and the Implied Volatility was 27.7
09/02/2020 Early Exercise of BAC 9/11/2020 $24.50 Call options, so 400 shares of BAC were assigned (sold) at the $24.50 strike price.

The overall performance result (including commissions) was as follows:
Covered Calls Cost Basis: $9,726.68
= ($25.66 - $1.35) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$540.00
= ($1.35 * 400 shares)
(b) Dividend Income (BAC shares assigned on 9/02/2020, the business day prior to the ex-dividend date): = +$0.00
(c) Capital Appreciation: -$464.00
= ($24.50 -$25.66) * 400 shares

Net Profit: +$76.00
= (+$540.00 options income +$0.00 dividend income - $464.00 capital appreciation)

Absolute Return: +0.8%
= +$76.00/$9,726.68
Equivalent Annualized Return on Investment: +35.6%
= (+$76.00/$9,726.68)*(365/8 days)