Covered Call Position Established in Anthem Inc.

A Covered Call position was established this morning in Anthem Inc. (ticker ANTM), with a December 18th, 2020 options expiration date.  One hundred shares of Anthem Inc. stock were purchased at $311.36 and one Call option was sold at $15.18 per share at the $300.00 strike price.  Important to the Covered Calls Advisor, there is no intervening earnings prior to the options expiration date as Anthem's next quarterly earnings report is scheduled for January 21st, 2021.

There is an ex-dividend date this Friday (12/04) of $.95 per share (1.2% annual dividend yield), so capturing this dividend is included in the potential return-on-investment results detailed below.  The time value obtained when this position was established was $3.82 per share [$15.18 Call option premium - ($311.36 stock price - $300.00 strike price)].       

As detailed below, a potential return-on-investment result if this position closes in-the-money at the December 18th options expiration date is +1.6% absolute return in 19 days (equivalent to a +30.9% annualized return-on-investment).  

Anthem Inc. (ANTM) -- New Covered Call Position
The buy/write transactions was as follows:
11/30/2020 Bought 100 shares of Anthem Inc. @ $311.36 per share 
11/30/2020 Sold 1 Anthem Dec 18th, 2020 $300.00 Call option @ $15.18 per share
12/04/2020 Ex-dividend at $.95 per share

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $29,618.67
= ($311.36 - $15.18) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$1,518.00
= ($15.18 * 100 shares)
(b) Dividend Income: +$95.00
= $.95 per share x 100 shares 
(c) Capital Appreciation (If Anthem stock is above $300.00 strike price at the Dec 18th options expiration date): -$1,136.00
= ($300.00 -$311.36) * 100 shares

Total Net Profit: +$477.00
= (+$1,518.00 options income +$95.00 dividend income -$1,136.00 capital appreciation)

Absolute Return: +1.6%
= +$477.00/$29,618.67
Equivalent Annualized Return: +30.9%
= (+$477.00/$29,618.67)*(365/19 days)

These returns will be achieved if the Anthem stock is above the $300.00 strike price at the market closing on the December 18th, 2020 options expiration date.  If the stock declines below the strike price, the breakeven price of $295.23 ($311.36 -$15.18 -$.95) provides 5.2% downside breakeven protection below today's stock purchase price.

Email me at partlow@cox.net if you have any questions related to this post or to anything else related to Covered Calls investing.

Jeff Partlow

November 20th, 2020 Monthly Options Expiration Results

The Covered Calls Advisor Portfolio had ten positions since last month's (October 16th, 2020) monthly options expiration date.  The Covered Calls Advisor is pleased that nine of these ten positions have been closed out profitably.  The results of these ten positions were:

• Four positions expired on the November 20th, 2020 monthly options expiration date with the following results:

1. One Constellation Brands Inc. (STZ) Covered Call closed in-the-money, so the 100 shares were assigned (sold) at the $170.00 strike price and achieved +2.0% absolute return in 30 days (equivalent to +24.6% annualized return-on-investment).
2. Two Intel Corp. (INTC) Covered Calls closed in-the-money, so the 200 shares were assigned (sold) at the $42.50 strike price and achieved +2.7% absolute return in 24 days (equivalent to +41.2% annualized return-on-investment).
3. Three KB Home (KBH) Covered Calls closed in-the-money, so the 300 shares were assigned (sold) at the $35.00 strike price and achieved +4.2% absolute return in 30 days (equivalent to +50.8% annualized return-on-investment).
4. Four Pfizer Inc. (PFE) Covered Calls closed in-the-money, so the 400 shares were assigned (sold) at the $34.00 strike price and achieved +2.8% absolute return in 24 days (equivalent to +42.3% annualized return-on-investment).

• Five Covered Calls positions using the Dividend Capture strategy were assigned early (the day prior to the ex-dividend date in each case) with the following results:

1. Citigroup Inc. (C) -- Three $40.00 Covered Calls -- +1.9% absolute return in 11 days (equivalent to +63.4% annualized return-on-investment).
2. IBM Corp. (IBM) -- Two $110.00 Covered Calls -- +1.6% absolute return in 18 days (equivalent to +33.0% annualized return-on-investment).
3. Johnson & Johnson (JNJ) -- Two $142.00 Covered Calls -- +0.3% absolute return in 4 days (equivalent to +25.8% annualized return-on-investment).
   
4. Morgan Stanley (MS) -- Two $49.00 Covered Calls -- +2.3% absolute return in 19 days (equivalent to +43.4% annualized return-on-investment).
5. Truist Financial Corporation (TFC) -- Two $40.00 Covered Calls -- +1.3% absolute return in 8 days (equivalent to +60.1% annualized return-on-investment).
   

Although nine of ten positions were closed out at a profit this month, one Covered Calls position (GoHealth Inc.) closed out-of-the-money (stock price below the strike price) at the November 20th, 2020 options expiration, so these shares now remain in the Covered Calls Advisor Portfolio (as shown in the right sidebar).  A decision will be made soon to either sell the GoHealth shares or continue with this Covered Calls position by selling Call options against the shares currently held.  As always, the transactions and return-on-investment results for this position will be posted on this blog site on the same day the transactions occur.

Established Covered Calls Position in Johnson & Johnson Using the Dividend Capture Strategy

Today a Covered Calls position was established in Johnson & Johnson (ticker symbol JNJ) when the Covered Calls Advisor's buy/write limit order was executed -- 200 shares were purchased at $145.71 and 2 December 4th, 2020 Call options were sold at $4.11 at the $142.00 strike price. 

There is an upcoming ex-dividend of $1.01 per share (a 2.7% annualized dividend yield) next Monday (Nov 23rd).  Two potential return-on-investment results for this position are detailed below (including the possibility of early exercise since the ex-dividend is prior to the December 4th options expiration date.  Given the Covered Calls Advisor's current Overall Market Meter outlook, a conservative in-the-money Covered Calls position was established -- the Delta was 73.8, which approximates the probability that the Call options will be in-the-money on the options expiration date. 

As detailed below, two potential return-on-investment results are: 

•  +0.3% absolute return (equivalent to +25.8% annualized return for the next 4 days) if the stock is assigned tomorrow (final business day prior to the November 23rd ex-dividend date); OR 

• +1.0% absolute return (equivalent to +22.7% annualized return over the next 16 days) if the stock is assigned on the December 4th options expiration date.

This Johnson & Johnson position is the first one in the Covered Calls Advisor Portfolio with a December options expiration date.  Importantly, there is no intervening earnings report prior to the options expiration date. 

Johnson & Johnson (JNJ) -- New Covered Calls Position
The buy/write transaction was:

11/19/2020 Bought 200 Johnson & Johnson shares @ $145.71
11/19/2020 Sold 2 JNJ 12/04/2020 $142.00 Call options @ $4.11
Note: the Time Value (aka Extrinsic Value) in the Call options was $.40 per share = [$4.11 Call options premium - ($145.71 stock price - $142.00 strike price)]
11/23/2020 Upcoming quarterly ex-dividend of $1.01 per share

Two possible overall performance results (including commissions) for this Johnson & Johnson Covered Calls position are as follows:
Covered Calls Cost Basis: $28,321.34
= ($145.71 - $4.11) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$822.00
= ($4.11 * 200 shares)
(b) Dividend Income (If option exercised early on Nov 20th, the business day prior to the Nov 23rd ex-div date): +$0.00; or
(b) Dividend Income (If Johnson & Johnson stock assigned at Dec 4th, 2020 expiration): +$202.00
= ($1.01 dividend per share x 200 shares)

(c) Capital Appreciation (If Johnson & Johnson Call options assigned early on Nov 20th): -$742.00
+($142.00 - $145.71) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $142.00 strike price at options expiration): -$742.00
+($142.00 - $145.71) * 200 shares

1. Total Net Profit [If Call options exercised on Nov 20th (business day prior to Nov 23rd ex-dividend date)]: +$80.00

= (+$822.00 options income +$0.00 dividend income -$742.00 capital appreciation); or

2. Total Net Profit (If JNJ shares assigned at $142.00 strike price at December 4th, 2020 expiration): +$282.00

= (+$822.00 +$202.00 -$742.00)

1. Absolute Return (If option exercised early on November 20th): +0.3%

= +$80.00/$28,321.34

Annualized Return (If option exercised early): +25.8%

= (+$80.00/$28,321.34)*(365/4 days); or

2. Absolute Return (If Johnson & Johnson shares assigned at $142.00 at Dec 4th, 2020 options expiration): +1.0%

= +$282.00/$28,321.34

Annualized Return (If Johnson & Johnson shares assigned at $142.00 at Dec. 4th, 2020 expiration): +22.7%

= (+$282.00/$28,321.34)*(365/16 days)

Either outcome provides a satisfactory return-on-investment result for this Johnson & Johnson investment.  These returns will be achieved as long as the stock is above the $142.00 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $140.59 ($145.71 -$4.11 -$1.01) provides 3.5% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this Johnson & Johnson position, all nine criteria were met.

Early Assignment of Truist Financial Corporation Covered Calls Position

This morning the Covered Calls Advisor was notified by Schwab that the two Truist Financial Corporation November 20th, 2020 $40.00 Call options were exercised early on November 11th, the last business day prior to today's (November 12th) ex-dividend date. There was no time value remaining in the Call options, so the owner of the Calls exercised their right to buy the 200 shares of TFC at the $40.00 strike price and capture today's $.45 ex-dividend.  

As detailed below, a +1.3% absolute return in 8 days (equivalent to a +60.1% annualized return-on-investment) was achieved for this position.  There was a total net profit of $104.00 since the full $592.00 income (profit) received from selling the options exceeded the $488.00 net loss in the stock price.  This early assignment was a desirable outcome from the Covered Calls Advisor's perspective since the +60.1% annualized return-on-investment exceeds the potential +52.7% if the stock price remains above the $40.00 strike price at market close on the November 20th, 2020 options expiration date.

Truist Financial Corporation (TFC) -- Covered Calls Position Closed by Early Assignment
The buy/write transaction was:
11/04/2020 Bought 200 Truist Financial shares @ $42.44
11/04/2020 Sold 2 TFC 11/20/2020 $40.00 Call options @ $2.96
Note: the Time Value (aka Extrinsic Value) in the Call options was $.52 per share = [$2.96 Call options premium - ($42.44 stock price - $40.00 strike price)]
11/11/2020 Early Exercise of two TFC 11/20/2020 $40.00 Call options, so 200 shares of TFC stock were assigned (sold) at the $40.00 strike price
Note: TFC stock was $48.37 when this early assignment transaction occurred. 

The overall performance result (including commissions) for this Truist Financial Covered Calls position was as follows:
Covered Calls Cost Basis: $7,897.34
= ($42.44 - $2.96) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$592.00
= ($2.96 * 200 shares)
(b) Dividend Income (Two Call options exercised early on Nov 11th, the business day prior to the Nov 12th ex-div date): +$0.00
(c) Capital Appreciation (TFC Call options assigned early on Nov 11th): -$488.00
= +($40.00 - $42.44) * 200 shares

Total Net Profit  [Two Call options exercised on Nov 11th (business day prior to Nov 12th ex-dividend date)]: +$104.00
= (+$592.00 options income +$0.00 dividend income -$488.00 capital appreciation)

 

Absolute Return: +1.3%

= +$104.00/$7,897.34

Annualized Return: +60.1%

= (+$104.00/$7,897.34) *(365/8 days)

November 6th, 2020 Options Expiration Results

The Covered Calls Advisor Portfolio had two positions with November 6th, 2020 options expirations. Last Friday, both positions closed in-the-money, so the maximum potential return-on-investment results were achieved as follows:

• Citigroup Inc. (C) -- +1.9% absolute return (equivalent to +63.4% annualized) for the 11 days of this investment; and  
• Morgan Stanley (MS) -- +2.3% absolute return (equivalent to +43.4% annualized) for the 19 days of this investment

Details for each position are provided below.  The cash now available from closing these positions will be retained until new Covered Calls and/or 100% Cash-Secured Puts positions are established.  

1.  Citigroup Inc. (C) -- Covered Calls Position Closed by Assignment at Options Expiration Date
The transactions were:
10/27/2020 Bought 300 Citigroup shares @ $42.09
10/27/2020 Sold 3 Citigroup 11/06/2020 $40.00 Call options @ $2.34
10/30/2020 Quarterly ex-dividend of $.51 per share
11/06/2020 Three Citi Call options closed in-the-money (with the stock price at $42.71 above the $40.00 strike price), so the options expired and the 300 shares of Citigroup stock were sold at the $40.00 strike price.

The overall performance results (including commissions) for this
Citigroup Covered Calls position were as follows:
Covered Calls Cost Basis: $11,927.01
= ($42.09 - $2.34) *300 + $2.01 commission

Net Profit Components:
(a) Options Income: +$702.00
= ($2.34*300 shares)
(b) Dividend Income (Citi shares assigned at Nov 6th, 2020 expiration): +$153.00
= ($.51 dividend per share x 300 shares)
(c) Capital Appreciation (Citi shares assigned at $40.00 strike price at options expiration): -$627.00
+($40.00-$42.09)*300 shares

 Total Net Profit (Citi shares assigned at $40.00 at Nov 6th, 2020 expiration): +$228.00

= (+$702.00 options income +$153.00 dividend income -$627.00 capital appreciation)
 

Absolute Return: +1.9%

= +$228.00/$11,927.01

Annualized Return: +63.4%

= (+$228.00/$11,927.01)*(365/11 days)

2.  Morgan Stanley (MS) -- Covered Calls Position Closed by Assignment at Options Expiration Date
The buy/write transaction was:
10/19/2020 Bought 200 Morgan Stanley shares @ $51.06
10/19/2020 Sold 2 Morgan Stanley 11/06/2020 $49.00 Call options @ $2.80
10/29/2020 Quarterly ex-dividend of $.35 per share
11/06/2020 Two Morgan Stanley Call options closed in-the-money (with the stock price at $51.70 above the $49.00 strike price), so the options expired and the 200 shares of MS stock were sold at the $49.00 strike price.

The overall performance results (including commissions) for this Morgan Stanley Covered Calls position were as follows:
Covered Calls Cost Basis: $9,653.34
= ($51.06 - $2.80) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$560.00
= ($2.80 * 200 shares)
(b) Dividend Income (Morgan Stanley shares assigned at Nov 6th, 2020 expiration): +$70.00
= ($.35 dividend per share x 200 shares)

(c) Capital Appreciation (MS shares assigned at $49.00 strike price at options expiration): -$412.00
+($49.00 - $51.06) * 200 shares

Total Net Profit (Morgan Stanley shares assigned at $49.00 strike price at November 6th, 2020 expiration): +$218.00

= (+$560.00 options income +$70.00 dividend income -$412.00 capital appreciation)

Absolute Return: +2.3%

= +$218.00/$9,653.34

Annualized Return: +43.4%

= (+$218.00/$9,653.34)*(365/19 days)

Best Wishes,
Jeff Partlow

Early Assignment of IBM Corp. Covered Calls

This morning the Covered Calls Advisor was notified by Schwab that the two IBM Corporation November 20th, 2020 $110.00 Call options were exercised early on November 6th, the last business day prior to Monday's (October 9th) ex-dividend date. There was $.00 time value [$4.04 midpoint of $3.85/$4.20 bid/ask range - ($114.04 stock price - $110.00 strike price)] remaining in the Call options, so the owner of the Calls exercised their right to buy the 200 shares of IBM at the $110.00 strike price and capture Monday's $1.63 ex-dividend.  

As detailed below, a +1.6% absolute return in 18 days (equivalent to a +33.0% annualized return-on-investment) was achieved for this position.  There was a total net profit of $352.00 since the full $1,032.00 income (profit) received from selling the options exceeded the $680.00 net loss in the stock price.

IBM Corp. (IBM) -- Covered Calls Position Closed by Early Assignment
The buy/write transaction was:
10/22/2020 Bought 200 IBM shares @ $113.40
10/22/2020 Sold 2 IBM 11/20/2020 $110.00 Call options @ $5.16
Note: the Time Value (aka Extrinsic Value) in the Call options was $1.76 per share = [$5.16 Call options premium - ($113.40 stock price - $110.00 strike price)]
11/06/2020 Early Exercise of two IBM 11/20/2020 $110.00 Call options, so 200 shares of IBM were assigned (sold) at the $110.00 strike price.

The overall performance results (including commissions) for this IBM Covered Calls position were as follows: 
Covered Calls Cost Basis: $21,649.34
= ($113.40 - $5.16) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,032.00
= ($5.16 * 200 shares)
(b) Dividend Income (Two IBM Call options exercised early on Nov 6th, the business day prior to the Nov 9th ex-div date): +$0.00
(c) Capital Appreciation (IBM Call options assigned early on Nov 6th): $680.00
=($110.00 - $113.40) * 200 shares

 Total Net Profit [Two Call options exercised on Nov 6th (business day prior to Nov 9th ex-dividend date)]: +$352.00

= (+$1,032.00 options income +$0.00 dividend income -$680.00 capital appreciation); or

 Absolute Return (Two IBM Call options exercised early on Nov 6th): +1.6%

= +$352.00/$21,649.34

Annualized Return (Two IBM Call options exercised early): +33.0%

= (+$352.00/$21,649.34)*(365/18 days)

Established Covered Calls Position in Truist Financial Corporation Using the Dividend Capture Strategy

Today a Covered Calls position was established in Truist Financial Corporation (ticker symbol TFC) when the Covered Calls Advisor's buy/write limit order was executed -- 200 shares were purchased at $42.44 and 2 November 20th, 2020 Call options were sold at $2.96 at the $40.00 strike price. 

There is an upcoming ex-dividend of $.45 per share (a 4.2% annualized dividend yield) on November 12th.  Two potential return-on-investment results for this position are detailed below (including the possibility of early exercise since the ex-dividend is prior to the November 20th options expiration date).  Given the Covered Calls Advisor's current Overall Market Meter outlook, a conservative in-the-money Covered Calls position was established -- the Delta was 74.4, which approximates the probability that the Call options will be in-the-money on the options expiration date.  Per the Covered Calls Advisor's preference, there is no earnings report prior to the Nov. 20th options expiration date.

As detailed below, two potential return-on-investment results are: 

•  +1.3% absolute return (equivalent to +60.1% annualized return for the next 8 days) if the stock is assigned early (business day prior to the November 12th ex-dividend date); OR 

• +2.5% absolute return (equivalent to +52.7% annualized return over the next 17 days) if the stock is assigned on the November 20th options expiration date.

 
Truist Financial Corporation (TFC) -- New Covered Calls Position
The buy/write transaction was:

11/04/2020 Bought 200 Truist Financial shares @ $42.44
11/04/2020 Sold 2 TFC 11/20/2020 $40.00 Call options @ $2.96
Note: the Time Value (aka Extrinsic Value) in the Call options was $.52 per share = [$2.96 Call options premium - ($42.44 stock price - $40.00 strike price)]
11/12/2020 Upcoming quarterly ex-dividend of $.45 per share

Two possible overall performance results (including commissions) for this Truist Financial Covered Calls position are as follows:
Covered Calls Cost Basis: $7,897.34
= ($42.44 - $2.96) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$592.00
= ($2.96 * 200 shares)
(b) Dividend Income (If option exercised early on Nov 11th, the business day prior to the Nov 12th ex-div date): +$0.00; or
(b) Dividend Income (If Truist Financial stock assigned at Nov 20th, 2020 expiration): +$90.00
= ($.45 dividend per share x 200 shares)

(c) Capital Appreciation (If TFC Call options assigned early on Nov 20th): -$488.00
+($40.00 - $42.44) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $40.00 strike price at options expiration): -$488.00
+($40.00 - $42.44) * 200 shares

1. Total Net Profit [If option exercised on Nov 11th (business day prior to Nov 12th ex-dividend date)]: +$104.00

= (+$592.00 options income +$0.00 dividend income -$488.00 capital appreciation); or

2. Total Net Profit (If Truist shares assigned at $40.00 strike price at November 20th, 2020 expiration): +$194.00

= (+$104.00 +$90.00 -$488.00)

1. Absolute Return (If option exercised early on Nov 11th): +1.3%

= +$104.00/$7,897.34

Annualized Return (If option exercised early): +60.1%

= (+$104.00/$7,897.34) * (365/8 days); or

2. Absolute Return (If Truist shares assigned at $40.00 at Nov 20th, 2020 options expiration): +2.5%

= +$194.00/$7,897.34

Annualized Return (If TFC shares assigned at $48.00 at Aug 7th, 2020 expiration): +52.7%

= (+$194.00/$7,897.34)*(365/17 days)

Either outcome provides an attractive return-on-investment result for this Truist Financial investment.  These returns will be achieved as long as the stock is above the $40.00 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $39.03 ($42.44 -$2.96 -$.45) provides 8.0% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this Truist Financial position, eight of nine criteria were met.

Continuation of GoHealth Inc. Covered Calls

At the October 16th, 2020 options expiration date, the Covered Calls position in GoHealth Inc. (ticker symbol GOCO) expired with the stock price at $12.06, well below the $15.00 strike price.  So, the October monthly Call options expired and the 400 shares of GoHealth Inc. stock were retained in the Covered Calls Advisor Portfolio.  Today, with the GoHealth stock price at $11.82, a sell-to-open order was executed to sell 4 November 20th, 2020 Call options at the $12.50 strike price for $.70 per share to continue this Covered Calls position.

As detailed below, two potential return-on-investment results for this GoHealth Inc. position are: (1) -4.5% absolute return in 89 days (equivalent to a -18.5% annualized return-on-investment) if the stock price is unchanged at $11.82 at the November 20th, 2020 options expiration; or (2) +0.4% absolute return in 89 days (equivalent to a +1.5% annualized return-on-investment) if the stock closes above the $12.50 strike price.

GoHealth Inc. (GOCO) -- Continuation of Covered Calls Position
The Buy/Write transaction was as follows:
08/24/2020 Bought 400 shares of GoHealth Inc. stock @ $15.00 per share 
08/24/2020 Sold 4 GoHealth Sept 18th, 2020 $15.00 Call options @ $1.05 per share
Note: the Implied Volatility of these Calls was very high at 61.6 today when this transaction was made.
09/18/2020 GOCO Call options expired since stock closed below the strike price
09/23/2020 Sold 4 GOCO Oct 16th, 2020 $15.00 Call options at $.80 against the 400 shares of GoHealth stock to continue the GoHealth Covered Calls position.
Note: the price of GOCO was $14.54 today when these Call options were sold.
10/16/2020 GOCO Call options expired since stock closed below the strike price
11/04/2020 Sold 4 GOCO Nov. 20th, 2020 $12.50 Call options at $.70 against the 400 shares of GoHealth stock to continue the GoHealth Covered Calls position.
Note: the price of GOCO was $11.82 today when these Call options were sold.

Two possible overall performance results (including commissions) are as follows:
Covered Call Cost Basis: $5,582.68
= ($15.00 - $1.05) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$1,020.00
= ($1.05 + $.80 + $.70) * 400 shares
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If GoHealth stock is unchanged at $11.82 at Nov 20th expiration): -$1,272.00
= ($11.82 - $15.00) * 400 shares; OR
(c) Capital Appreciation (If GoHealth stock is above $12.50 strike price at Nov 20th expiration): -$1,000.00
= ($12.50 - $15.00) * 400 shares

1. Total Net Profit (If GOCO stock unchanged at $11.82 at options expiration): -$252.00
= (+$1,020.00 options income +$0.00 dividend income -$1,272.00 capital appreciation)
2. Total Net Profit (If GOCO stock closes above $12.50 at Nov 20th options expiration): +$20.00
= (+$1,020.00 options income +$0.00 dividend income -$1,000.00 capital appreciation)

1. Absolute Return (If GoHealth stock unchanged): -4.5%
= -$252.00/$5,582.68
Equivalent Annualized Return: -18.5%
= (-$252.00/$5,582.68)*(365/89 days)
2. Absolute Return (If stock closes above $12.50 strike price at options expiration): +0.4%
= +$20.00/$5,582.68
Equivalent Annualized Return: +1.5%
= (+$20.00/$5,582.68)*(365/89 days)