Rolled Out the Tyson Foods Inc. Covered Calls Position

The Covered Calls Advisor Portfolio has a Covered Calls position in Tyson Foods Inc. (ticker TSN)  that expired out-of-the-money at its December 16th, 2022 options expiration date.  Tyson Foods closed at $61.84 then and the strike price was $65.00.  I decided to continue this Covered Calls position today by rolling-down-and-out to the $62.50 strike price at the January 20th, 2023 expiration date by selling two Call options at $1.30 per share against the 200 Tyson shares owned when the stock price today was $61.67.   

As detailed below, two potential return-on-investment results are: (1) -1.2% absolute return (equivalent to -8.4% annualized return for the 53 days holding period) if the Tyson Foods price is unchanged at today's $61.67 price on the January 20th, 2023 expiration date; and (2) -0.1% absolute return (equivalent to -1.0% annualized return for the 53 days holding period) if Tyson Foods is in-the-money (i.e. above the $62.50 strike price) on the Jan. 20th expiration date. In doing this rollout transaction, I am attempting to maintain exposure in the Consumer Staples sector by repairing this currently losing position back closer to profitability. 

Tyson Foods Inc. (TSN) -- Covered Calls Position Continued by Rolling Out
The original simultaneous buy/write transaction was:

11/23/2022 Bought 200 Tyson Foods shares @ $66.99
11/23/2022 Sold 2 Tyson Foods 12/16/2022 $65.00 Call options @ $2.59
11/30/2022 Upcoming quarterly ex-dividend of $.48 per share
12/16/2022 Two TSN Call options expired out-of-the-money and 200 shares remain in the Covered Calls Advisor Portfolio
12/27/2022 Continued Tyson Foods Covered Calls position by selling two Jan. 20th, 2023 $62.50 Call options @ $1.30 per share.  The stock price was $61.67 when this transaction was made.

Two possible overall performance results (including commissions) for this Tyson Foods Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $15,477.34
= ($79.84 - $2.46) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$779.34
= ($2.59 + $1.30) * 200 shares - $2.68 commissions
(b) Dividend Income: +$96.00
= ($.48 dividend per share x 200 shares)
(c) Capital Appreciation (If the Tyson Foods price is unchanged at today's $61.67 price on the January 20th, 2023 expiration date): -$1,064.00
+($61.67 current stock price - $66.99 stock purchase price) * 200 shares; OR
(c) Capital Appreciation (If Tyson Foods shares are assigned at the $62.50 strike price at the 1/20/2023 options expiration date): -$898.00
+($62.50 options strike price - $66.99 stock purchase price) * 200 shares

1. Total Net Profit (If the Tyson Foods price is unchanged at today's $61.67 price on the January 20th, 2023 expiration date): -$188.66

= (+$779.34 options income +$96.00 dividend income -$1,064.00 capital appreciation); OR

2. Total Net Profit (If Tyson Foods shares are assigned at the $62.50 strike price at the 1/20/2023 options expiration date): -$22.66

= (+$779.34 options income +$96.00 dividend income -$898.00 capital appreciation)

 

1. Absolute Return-on-Investment (If the Tyson Foods price is unchanged at today's $61.67 price on the January 20th, 2023 expiration date): -1.2%

= -$188.66/$15,477.34

Annualized Return-on-Investment (If stock price unchanged at $61.67 at expiration): -8.4%

= (-$188.66/$15,477.34) * (365/53 days); OR

2. Absolute Return-on-Investment (If Tyson Foods shares are assigned at the $62.50 strike price at the 1/20/2023 options expiration date): -0.1%

= -$22.66/$15,477.34

Annualized Return-on-Investment (If Tyson Foods shares are assigned at the $62.50 strike price at the 1/20/2023 options expiration date): -1.0%
= (-$22.66/$15,477.34) * (365/53 days)