This afternoon my Covered Calls net debit limit order was executed. A very short-term (9 days) position was established in Pfizer Inc. (ticker PFE) when 400 shares were purchased at $48.00 and 4 August 19th, 2022 Call options were sold at $1.43 at the $47.00 strike price. The corresponding extrinsic value (i.e. time value) was $.43 per share [$1.43 Call options premium - ($48.00 stock purchase price - $47.00 strike price)].
Given the Covered Calls Advisor's current Bearish Overall Market Meter outlook, a moderately in-the-money Covered Calls position was established -- the Delta was 67.9, which closely approximates a 67.9% probability that the Call option will be in-the-money on the options expiration date. In addition, the Implied Volatility of the Calls was 28.8 when the position was established which exceeds the current VIX of 20.4. This is a very short-term position of only 9 days duration and the next earnings report is after the August 19th options expiration date.
Pfizer meets the five primary criteria currently preferred for new positions established by the Covered Calls Advisor:
Some key numbers for this Pfizer Inc. Covered Calls position are:
Net Investment: $18,630.68
Profit if Assigned on Expiration Date: $169.32
Days Until August 19th, 2022 Options Expiration: 9
Absolute Return-on-Investment if Assigned at Expiration: +0.9%
Annualized Return-on-Investment if Assigned at Expiration: +36.9%
Jeff Partlow (The Covered Calls Advisor)
partlow@cox.net
