Covered Calls Established in Uber Technologies Inc.

This morning my buy/write net debit limit order was executed and 500 shares of Uber Technologies Inc.(ticker symbol UBER) stock were purchased at $39.50 and 5 June 23rd, 2023 $38.00 Call options were sold at $2.04 per share -- a net debit of $37.46 per share -- so the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $.54 per share [$2.04 Call options premium - ($39.50 stock purchase price - $38.00 strike price)].  This limit order was placed soon after market open when the stock was $40.12 (well above the $39.50 purchase price).  I didn't expect the stock to decline that quickly, but am pleased that my limit order was executed at my net debit price.

This is a repeat of five similar Covered Calls positions in Uber during the past three months and all five were successfully assigned on their respective options expiration dates.  Like the prior five positions, today's new position was established at a moderately in-the-money strike price with an approximate probability that this position will be in-the-money and therefore assigned on the options expiration date of 71.0%.

The reasons for my bullish outlook on Uber remain unchanged from the descriptions included in my prior posts on this blog when these five Uber Covered Calls positions were established.  In addition, yesterday Evercore's Mark Mahaney identified three "value catalysts" that could propel its stock higher: (1) Uber is going to start actually generating positive positive GAAP earnings; (2) they'll start buying back stock, and (3) they'll finally reach the metrics needed to be included in the S&P 500.

As detailed below, a potential outcome for this Uber Technologies investment is +1.4% absolute return-on-investment for the next 17 days (equivalent to +30.6% annualized-return-on-investment) if the stock closes above the $38.00 strike price on the June 23rd, 2023 options expiration date.

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

The net debit buy/write limit order was executed as follows:
6/7/2023 Bought 500 shares of Uber Technologies Inc. stock @ $39.50 per share 
6/7/2023 Sold 5 Uber June 23rd, 2023 $38.00 Call options @ $2.04 per share
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 34.0 when this position was established.  Also, 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 June 23rd expiration date is follows:
Covered Calls Net Investment: $18,733.35
= ($39.50 - $2.04) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,016.65
= ($2.04 * 500 shares) - $3.35 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $38.00 strike price at the June 23rd expiration): -$750.00
= ($38.00 - $39.50) * 500 shares

Potential Total Net Profit (If assigned at expiration): +$266.65
= (+$1,016.65 options income + $0.00 dividend income - $750.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.4%
= +$266.65/$18,733.35
Potential Equivalent Annualized-Return-on-Investment: +30.6%
= (+$266.65/$18,733.35) * (365/17 days)