Covered Call Position Established in Meta Platforms Inc.

A new Covered Call position was established early this morning in Meta Platforms Inc. (formerly Facebook--ticker FB) by purchasing 100 shares at $320.73 per share and selling one Call option at the $300.00 strike price with a January 21st, 2022 options expiration date at $22.83 per share.  The time value was $2.10 per share [$22.83 Call option premium - ($320.73 stock purchase price - $300.00 strike price)]. The Call option premium received was attractive since the Implied Volatility (IV) of the Call was 37.9 when this position was established.  Analysts continue to be bullish on Meta's stock (43 of 48 analysts rate it as either a Strong Buy or Outperform), and their average price target is $401.30.  Their Q4 2021 earnings will be announced on February 2nd, 2022 and their P/E ratio based on this year's estimated earnings is 23--so Meta continues to retain its position as the megacap tech stock with the most attractive valuation.  Given the Covered Calls Advisor's cautious market outlook and the swift market decline so far in the first few days of trading in 2022, a conservative in-the-money Covered Call position was established with a Delta of 83.2 (which approximates the probability of assignment at its January 21st options expiration date). 

As detailed below, a potential return-on-investment result for this Meta Platforms position is:
+0.7% absolute return in 12 days (equivalent to a +21.4% annualized return-on-investment) if the stock closes above the $300.00 strike price at the Jan. 21st, 2022 options expiration date.
  

Meta Platforms Inc. (FB) -- New Covered Call Position

The Covered Calls Advisor's buy/write limit order was transacted as follows:
1/10/2022 Bought 100 Facebook shares @ $320.73
1/10/2022 Sold 1 Facebook 1/21/2022 $300.00 Call option @ $22.83. 

A possible overall performance result (including commissions) for this Meta Platforms Covered Call position is as follows:
Covered Call Cost Basis: $29,790.67
= ($320.73 - $22.83) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$2,282.33
= ($22.83 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00

(c) Capital Appreciation (If FB shares assigned at $300.00 strike price at options expiration): -$2,073.00
+($300.00 - $320.73) * 100 shares

Total Net Profit (If Meta Platforms shares assigned at $300.00 strike price at Jan. 21st, 2022 expiration): +$209.33

= (+$2,282.33 option income +$0.00 dividend income -$2,073.00 capital appreciation)

Absolute Return  (If Meta shares assigned at $300.00 on the Jan.21st, 2022 expiration date): +0.7%

= +$209.33/$29,790.67

Annualized Return-on-Investment: +21.4%

= (+$209.33/$29,790.67) * (365/12 days)