Covered Calls Established in Uber Technologies Inc.

Today, a Covered Calls net debit limit order was executed and 500 shares of Uber Technologies Inc.(ticker symbol UBER) stock were purchased at $31.36 and 5 April 21st, 2023 $30.00 Call options were simultaneously sold at $2.01 per share -- a net debit of $29.35 per share -- so the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $.65 per share [$2.01 Call options premium - ($31.36 stock purchase price - $30.00 strike price)].  This is the second Uber Covered Calls position established currently in the Covered Calls Advisor Portfolio.  The first one has an options expiration date this Thursday (April 6th) at the same $30.00 strike price as today's new Uber position.  For today's new position, the approximate probability that this position will be in-the-money and therefore assigned on the options expiration date was 69.9% when this position was transacted.

As described in previous blog posts about Uber, it has a bright future as the pre-eminent rideshare company in North America (58% of revenue) and also a substantial worldwide presence in over 70 countries with good ongoing growth prospects. 

As detailed below, a potential outcome for this Uber Technologies investment is +2.2% absolute return-on-investment for the next 19 days (equivalent to +42.1% annualized-return-on-investment) if the stock closes above the $30.00 strike price on the April 21st, 2023 options expiration date.

Uber Technologies Inc. (UBER) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
4/3/2023 Bought 500 shares of Uber Technologies Inc. stock @ $31.36 per share 
4/3/2023 Sold 5 Uber April 21st, 2023 $30.00 Call options @ $2.01 per share
Note: The Implied Volatility of the Calls was 42.4 when this position was established, an attractive level given there is no earnings report prior to the options expiration date.

A possible overall performance result (including commissions) if this position is assigned on its April 21st options expiration date is follows:
Covered Calls Net Investment: $14,678.35
= ($31.36 - $2.01) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,001.65
= ($2.01 * 500 shares) - $3.35 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $30.00 strike price and therefore assigned at the April 21st options expiration): -$680.00
= ($30.00 -$31.36) * 500 shares

Potential Total Net Profit (If assigned at expiration): +$321.65
= (+$1,001.65 options income +$0.00 dividend income -$680.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.2%
= +$321.65/$14,678.35
Potential Equivalent Annualized-Return-on-Investment: +42.1%
= (+$321.65/$14,678.35) * (365/19 days)