Early Assignment of Covered Calls Position in Bank of New York Mellon

Early this morning, the Covered Calls Advisor was notified by my broker (Schwab) that the four Bank of New York Mellon (ticker BK) November 4th, 2022 $38.00 Call options were exercised yesterday--Note: it is commonplace with early assignments that they normally occur on the last business day prior to the ex-dividend date.  Bank of New York Mellon stock has increased from its purchase price of $39.88 to $41.23 at the market close yesterday.  The original $.50 time value had declined on yesterday's market close to an amount close to $0.00, so as I expected and with 9 days remaining until the options expiration date, the owner of the Calls exercised their option to buy the 400 shares at the $38.00 strike price in order to receive today's $.37 per share ex-dividend.  

The post showing the details of this position when it was originally established is here .  Although I will not receive the $.37 per share dividend, I preferred the Early Assignment since the early assignment for this Bank of New York position provided a higher annualized-return-on-investment result (and I always compare "annualized return-on-investments" when comparing investments with differing total days of duration).  In this case, the +1.3% absolute return-on-investment (equivalent to +60.0% annualized roi for the 8 days this position was held) exceeded the maximum potential annualized roi of +46.7% if the stock would instead be assigned nine days later on its original November 4th, 2022 options expiration date.    As a replacement for this position, I will likely establish a new Covered Calls position later today in the same Financial Sector (as this Bank of New York position was).  As is the norm with almost all positions established in the Financial Sector, I will attempt to identify a company I am bullish on where I can also apply my Dividend Capture Strategy in order to boost the potential annualized return-on-investment.    
 

Bank of New York Mellon Corp. (BK) -- Covered Calls Position Closed by Early Assignment

The simultaneous buy/write transaction was:
10/18/2022 Bought 400 Bank of New York Mellon Corp. shares @ $39.88
10/18/2022 Sold 4 BK November 4th, 2022 $38.00 Call options @ $2.38 per share
10/25/2022 Bank of New York Mellon Call options owner exercised their options, so the Covered Calls position was closed out early. The 4 BK Call options expired worthless and the 400 BK shares were sold at the $38.00 strike price.
 

The overall performance results (including commissions) for this Bank of New York Mellon Covered Calls position are as follows:
Stock Purchase Net Investment: $15,002.68
= ($39.88 - $2.38) * 400 shares + $2.68 commission

Net Profit:
(a) Options Income: +$949.32
= ($2.38 * 400 shares) - $2.68 commission
(b) Dividend Income (Four Call options exercised early on October 25th, the business day prior to the October 26th ex-div date): +$0.00
(c) Capital Appreciation (BK's shares assigned early at $38.00 strike price on Oct. 25th): -$752.00
+($38.00-$39.88) * 400 shares

Total Net Profit (Bank of New York's shares assigned early at $38.00 on Oct. 25th): +$197.32

= (+$949.32 options income +$0.00 dividend income -$752.00 capital appreciation)

Absolute Return-on-Investment: +1.3%

= +$197.32/$15,002.68

Annualized Return-on-Investment: +60.0%

= (+$197.32/$15,002.68) * (365/8 days)