Established Covered Calls in Suncor Energy Inc.

This afternoon, my net debit limit order was executed and a Covered Calls position was established in Suncor Energy Inc. (ticker SU) when the Covered Calls Advisor's buy/write limit order for the September 16th, 2022 $32.50s executed at a net debit price of $32.15.  Four hundred Suncor Energy shares were purchased at $34.77 and 4 September 16th, 2022 $32.50 Calls were sold at $2.62 per share.  So, the corresponding time value (aka extrinsic value) was $.35 per share = [$2.62 Call options premium - ($34.77 stock purchase price - $32.50 strike price)].  Given the Covered Calls Advisor's current cautious Overall Market Meter outlook, a moderately in-the-money Covered Call position was established--the Delta was 78.0 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 34.3 when the position was established which, as desired, was above the VIX which was at 22.2. 

Suncor goes ex-dividend at $.47 (Canadian $s)--which is about $.362 U.S.$s per share on September 1st, 2022 (a 4.2% annualized dividend yield at today's stock purchase price).  This dividend is included in the potential return-on-investment results shown below.  There is no earnings report prior to the options expiration date.

Suncor appeared in my Energy Sector stock screener and the average analysts' target price is currently $43.20 (+24.2% above today's purchase price).

As detailed below, two potential return-on-investment results for this Suncor Covered Calls position are: (a) +1.1% absolute return (equivalent to +55.7% annualized return for the next 7 days) if the stock is assigned early [i.e. on Aug. 31st which is the last trading day prior to the September 1st ex-dividend date]; OR (b) +2.2% absolute return (equivalent to +34.8% annualized return over the next 23 days) if the stock is assigned on the September 16th, 2022 options expiration date. 

Suncor Energy Inc. (SU) -- New Covered Calls Position
The simultaneous buy/write transactions was as follows:
08/25/2022 Bought 400 shares of Suncor stock @ $34.77 per share 
08/25/2022 Sold 4 Suncor Sept. 16th, 2022 $32.50 Call options @ $2.62 per share
09/01/2022 Upcoming ex-dividend at $.362 per share

The overall performance results (including commissions) would be as follows:
Covered Calls Cost Basis: $12,862.68
= ($34.77 - $2.62) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$1,045.32
= ($2.62 * 400 shares) - $2.68 commission
(b) Dividend Income (If Suncor stock assigned on the September 1st ex-dividend date): $0.00
(b) Dividend Income (If Suncor stock assigned on the Sept. 16th options expiration date): +$144.80
= $.362 dividend per share x 400 shares
(c) Capital Appreciation (If Suncor stock assigned on the Sept 1st ex-dividend date): -$908.00
= ($32.50 - $34.77) * 400 shares
(c) Capital Appreciation (If Suncor stock is above $32.50 strike price and therefore assigned at the September 16th expiration): -$908.00
= ($32.50 - $34.77) * 400 shares

1. Potential Net Profit (If Suncor shares assigned on 8/31/2022, the day prior to the Sept. 1st ex-dividend date): +$137.32
= (+$1,045.32 options income +$0.00 dividend income - $908.00 capital appreciation)
2. Potential Net Profit (If Suncor price is above $32.50 strike price at the Sept. 16th options expiration): +$282.12
= (+$1,045.32 options income +$144.80 dividend income - $908.00 capital appreciation)

1. Absolute Return-on-Investment (If Suncor shares assigned on 8/31/2022, the day prior to the 9/1/2022 ex-dividend date): +1.1%
= +$137.32/$12,862.68
Equivalent Annualized Return-on-Investment (If assigned early on day prior to ex-div date): +55.7%
= (+$137.32/$12,862.68)*(365/7 days)
2. Absolute Return-on-Investment (If Suncor price is above $32.50 strike price and therefore assigned at the Sept. 16th options expiration): +2.2%
= +$282.12/$12,862.68
Equivalent Annualized Return-on-Investment (If assigned on 9/16/2022 options expiration date): +34.8%
= (+$282.12/$12,862.68)*(365/23 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy.  As shown below, all nine criteria are achieved for this Suncor Energy Inc. Covered Calls position.