Established Covered Calls Position in iShares China Large-Cap ETF

A Covered Calls position was established in iShares China Large-Cap ETF (ticker FXI) with a January 20th, 2023 options expiration date.   Five hundred shares of iShares China Large-Cap ETF were purchased at $28.28 and five 1/20/2023 Call options were sold at the $27.00 strike price at $1.86 per share--a net debit transaction of $26.42 per share which provides a $.58 per share time value. The Implied Volatility of these Calls was 40.7 and the Delta was 69.0 when this transaction was executed.

As detailed below, a potential return-on-investment result is +2.2% absolute return (equivalent to +36.0% annualized return for the next 22 days) if the share price is in-the-money (i.e. above the $27.00 strike price) and therefore assigned on the January 20th, 2023 options expiration date.

 
iShares China Large-Cap ETF (FXI) -- New Covered Calls Position 
The Buy/Write transaction was as follows:
12/30/2023 Bought 500 shares of iShares China Large-Cap ETF @ $28.28 per share 
12/30/2023 Sold 5 FXI Jan. 20th, 2023 $27.00 Call options @ $1.86 per share

A possible overall performance result (including commissions) for this iShares China Large-Cap ETF Covered Calls position is as follows:
FXI Shares Purchase Cost: $13,213.35
= ($28.28 - $1.86) * 500 shares + $3.35 commission

Net Profit:
(a) Options Income: +$926.65
= ($1.86 * 500 shares) - $3.35 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 500 iShares China Large-Cap ETF shares assigned at $27.00 strike price at expiration): -$640.00
+($27.00 - $28.28) * 500 shares

Total Net Profit (If 500 iShares China Large-Cap ETF shares assigned at $27.00 strike price at expiration): +$286.65
= (+$926.65 options income +$0.00 dividend income -$640.00 capital appreciation)

Absolute Return-on-Investment: +2.2%
= +$286.65/$13,213.35
Annualized Return-on-Investment: +36.0%
= (+$286.65/$13,213.35) * (365/22 days)