Covered Call Position Established in Alphabet Inc.

This morning at 9:35am EST, a new Covered Call buy/write transaction was established in Alphabet Inc. (ticker GOOGL) with a December 18th, 2020 options expiration date. One Alphabet Call option was sold at $55.86 at the $1,700.00 strike price when the stock price was $1,739.59, so the time value in the Call option when the Covered Call transaction was executed was $16.27 per share [$$1,700.00 strike price - ($1,739.59 stock price - $55.86 option price)].  A slightly in-the-money strike price (2.3% downside to the strike price) was chosen because of the Covered Calls Advisor's cautious Overall Market Meter outlook.

As detailed below, the potential return-on-investment result is +1.0% absolute return in 9 days (equivalent to a +39.2% annualized return-on-investment).  

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

The simultaneous buy/write transaction was as follows:
12/10/2020 Bought 100 shares of Alphabet Inc. stock @ $1,739.59 per share 
12/10/2020 Sold 1 Alphabet Inc. December 18th, 2020 $1,700.00 Call option @ $55.86 per share
Note: this was a simultaneous Buy/Write transaction.  The Implied Volatility of the Call option was 28.5 and the Open Interest was 1,675 contracts when this transaction was executed. 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $168,373.67
= ($1,739.59 - $55.86) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$5,586.00
= ($55.86 * 100 shares)
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $1,700.00 strike price at Dec 18th expiration): -$3,959.00
= ($1,700.00 - $1,739.59) * 100 shares

Total Net Profit: +$1,627.00
= (+$5,586.00 options income +$0.00 dividend income -$3,959.00 capital appreciation)

Absolute Return: +1.0%
= +$1,627.00/$168,373.67
Equivalent Annualized Return: +39.2%
= (+$1,627.00/$168,373.67)*(365/9 days)

The downside 'breakeven price' at expiration is at $1,683.73 ($1,739.59 - $55.86), which is 3.2% below the current market price of $1,739.59.