Established Covered Calls Position in DICK'S Sporting Goods Inc.

A Covered Calls position was established in DICK'S Sporting Goods Inc. (ticker DKS) when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $128.08 was executed.  Two hundred shares were purchased at $133.73 and two August 4th, 2023 Call options were sold at $5.65 at the $130.00 strike price.  The potential time value profit is $1.92 per share = [$130.00 strike price - ($133.73 stock purchase price - $5.65 Call options price)].   A moderately in-the-money Covered Calls position was established with a Delta of 66.9 which approximates a 66.9% probability this position will be in-the-money and therefore assigned on the August 4th, 2023 options expiration date.  There is no upcoming ex-dividend date prior to the expiration date.

Dick's Sporting Goods meets all five of my current primary evaluation criteria for identifying worthwhile candidates for investing:

In addition, for the past 4 quarters, DICK'S earnings per share have exceeded the comparable prior year quarter and are expected to continue to do so for each of the four FY 2024 quarters.  They have also beat analysts' EPS estimates every quarter for the past 4 quarters.  A very short-term stock price technical indicator of relative strength RS(2) was very oversold at only 13.2 (note: readings below 30 are generally considered to be oversold) when this position was transacted this morning.

As detailed below, the potential return-on-investment results for this DICK'S Sporting Goods Inc. Covered Calls position is +1.5% absolute return (equivalent to +32.1% annualized return-on-investment for the next 17 days) if the stock is assigned on the August 4th options expiration date.

DICK'S Sporting Goods Inc. (DKS) -- New Covered Calls Position

The buy/write transaction was:
7/19/2023 Bought 200 DICK'S Sporting Goods shares @ $133.73
7/19/2023 Sold 2 DKS 8/4/2023 $130.00 Call options @ $5.65 per share.

A possible overall performance result (including commissions) for this DICK'S Sporting Goods Covered Calls position is as follows:
Covered Calls Net Investment: $25,617.34
= ($133.73 - $5.65) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,128.66
= ($5.65 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
= ($0.00 dividends per share x 200 shares)
(c) Capital Appreciation (If DICK'S shares assigned at $130.00 strike price at expiration): -$746.00
+($130.00 - $133.73) * 200 shares

Total Net Profit (If options exercised on the August 4th, 2023 options expiration date): +$382.66

= (+$1,128.66 options income +$0.00 dividend income -$746.00 capital appreciation)

Potential Absolute Return-on-Investment (If the DICK'S Sporting Goods shares are assigned at the $130.00 strike price at the 8/4/2023 options expiration date): +1.5%

= +$382.66/$25,617.34

Potential Annualized Return-on-Investment (If 200 DICK'S shares assigned at the $130.00 strike price on the August 4th, 2023 options expiration date): +32.1%

= (+$382.66/$25,617.34) * (365/17 days)