Established Covered Calls in Devon Energy Corp.

Today, a Covered Calls position was established in Devon Energy Corp.(ticker DVN) when the Covered Calls Advisor's buy/write limit order for the March 18th, 2022 $54.00 Call options executed at a net debit price of $53.38.  Two hundred Devon shares were purchased at $58.90 and 2 March 18th, 2022 $54.00 Calls were sold at $5.52 per share.  So, the corresponding time value (aka extrinsic value) was $.62 per share = [$5.52 Call options premium - ($58.90 stock purchase price - $54.00 strike price)].  Given the Covered Calls Advisor's current cautious Overall Market Meter outlook, an in-the-money Covered Calls position was established--the Delta was 79.7, which closely approximates the probability that the Call options will be in-the-money on the options expiration date.  In addition, the Implied Volatility of the Calls was significantly higher than normal for Devon at 58.0 when the position was established. This elevated I.V. mirrored the substantially higher VIX, which was below 20 at the beginning of the year and today was trading at 35.0. 

Devon goes ex-dividend at $1.00 per share (6.8% annualized dividend yield at the current stock price) this Friday, so this dividend is included in the potential return-on-investment results shown below. 

A potential return-on-investment result is +3.0% absolute return in 12 days (equivalent to a +91.9% annualized return-on-investment) if Devon stock is in-the-money and therefore assigned (i.e. sold) at the $54.00 strike price on the March 18th options expiration date.

Devon Energy Corp. (DVN) -- New 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 Upcoming ex-dividend at $1.00 per share

The overall performance results (including commissions) would be 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 (If Devon stock assigned on March 18th options expiration date): $200.00
= $1.00 dividend per share x 200 shares
(c) Capital Appreciation (If Devon stock is above $54.00 strike price at the March 18th expiration): -$980.00
= ($54.00 - $58.90) * 200 shares

Total Net Profit (If stock assigned on March 18th options expiration date): +$322.66
= (+$1,102.66 options income +$200.00 dividend income - $980.00 capital appreciation)

Absolute Return-on-Investment: +3.0%
= +$322.66/$10,677.34
Equivalent Annualized Return: +91.9%
= (+$322.66/$10,677.34)*(365/12 days)