Early Assignment of Devon Energy Corp. Covered Calls

Early this morning, the Covered Calls Advisor was notified by Schwab that the two Devon Energy Corp. March 18th, 2022 $54.00 Call options were exercised yesterday (the last business day prior to today's 3/11/2022 ex-dividend date).   The Devon Energy stock price has increased from its purchase price of $58.90 to $60.57 at the market close yesterday.  

This early exercise by the Devon Energy Calls owners was expected by the Covered Calls Advisor since the remaining time value was very close to $0.00, so they elected to purchase the 200 shares at the $54.00 strike price and thus also capture today's $1.00 ex-dividend.  Despite not capturing today's dividend, this is a desirable outcome for the Covered Calls Advisor since the resulting +104.8% annualized return-on-investment (aroi) achieved exceeds the +91.9% maximum potential aroi that might have been achieved next Friday (on the March 18th options expiration date) if the stock remained above the $54.00 strike price.  The cash received from this position will most likely be invested in another Dividend Capture Strategy position--perhaps in the Energy Select Sector SPDR Fund (ticker XLE) which will go ex-distribution on March 21st.  

The transactions and detailed results for this position are as follows:

Devon Energy Corp. (DVN) -- Early Assignment of Devon Covered Calls Position
The simultaneous buy/write transactions was as follows:
03/07/2022 Bought 200 shares of Devon Energy stock @ $58.90 per share 
03/07/2022 Sold 2 DVN March 18th, 2022 $54.00 Call options @ $5.52 per share
03/11/2022 Two Devon 3/18/2022 $54.00 Calls were exercised early (on the day prior to the 3/11/2022 ex-dividend date), so the Calls expired and the 200 Devon shares were sold at the $54.00 strike price.  Note: the Devon stock price was deep-in-the-money at $60.57 when this transaction occurred. 

The overall performance results (including commissions) was as follows:
Covered Calls Cost Basis: $10,677.34
= ($58.90 - $5.52) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,102.66
= ($5.52 * 200 shares) - $1.34 commission
(b) Dividend Income: $0.00
(c) Capital Appreciation (Devon stock assigned early at the $54.00 strike price): -$980.00
= ($54.00 - $58.90) * 200 shares

Total Net Profit: +$122.66
= (+$1,102.66 options income +$0.00 dividend income - $980.00 capital appreciation)

Absolute Return-on-Investment: +1.1%
= +$122.66/$10,677.34
Equivalent Annualized Return-on-Investment: +104.8%
= (+$122.66/$10,677.34)*(365/4 days)