Early Assignment of Abbvie Inc. Covered Calls

Early this morning, the Covered Calls Advisor was notified by Schwab that the two Abbvie Inc. April 23rd, 2021 $104.00 Call options were exercised early yesterday (on April 13th, 2021), the last business day prior to today's (April 14th) ex-dividend date.   The Abbvie stock price has increased slightly from its purchase price of $107.51 to $108.20 at the market close yesterday.  So the initial $.78 time value [$4.29 Call options price - ($107.51 stock price - $104.00 strike price)] declined to only $.03 time value remaining at market close yesterday, so the owner of the Calls exercised their right to buy the 200 shares of Abbvie at the $104.00 strike price and capture today's $1.30 ex-dividend.  

As detailed below, a +0.8% absolute return in 8 days (equivalent to a +34.5% annualized return-on-investment) was achieved for this position. 

Abbvie Inc. (ABBV) -- Early Assignment of Abbvie Covered Calls Position

The simultaneous buy/write transaction was as follows:
04/06/2021 Bought 200 shares of Abbvie Inc. stock @ $107.51 per share 
04/06/2021 Sold 2 ABBV April 23rd, 2021 $104.00 Call options @ $4.29 per share
04/13/2021 Early assignment of 2 ABBV Call options so these options expired and the 200 shares were sold at the $104.00 strike price.

The overall performance results (including commissions) was as follows:
Covered Call Cost Basis: $20,645.34
= ($107.51 - $4.29) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$858.00
= ($4.29 * 200 shares)
(b) Dividend Income (Abbvie shares assigned early on 4/13/2021, the business day prior to the 4/14/2021 ex-dividend date): = +$0.00
(c) Capital Appreciation (ABBV shares assigned early on 4/13/2021): -$702.00
= ($104.00 strike price - $107.51 stock purchase price) * 200 shares

 
Net Profit: +$156.00
= (+$858.00 options income +$0.00 dividend income - $702.00 capital appreciation)

 Absolute Return-on-Investment: +0.8%
= +$156.00/$20,645.34
Equivalent Annualized Return-on-Investment: +34.5%
= (+$156.00/$20,645.34)*(365/8 days)