Covered Calls Established in Alphabet Inc., Bank of America Corporation, and McDonald's Corporation

1.  Alphabet Inc. (GOOGL) -- New Covered Calls Position

The simultaneous buy/write transaction was as follows:
8/21/2023 Bought 200 shares of Alphabet Inc. stock @ $127.12 per share.  
8/21/2023 Sold 2 Alphabet Inc. September 1st, 2023 $123.00 Call options @ $5.54 per share.

Note: this was a simultaneous Buy/Write transaction.  The Implied Volatility of the Call option was 33.6 when this transaction was executed which as desired is well above the 16.9 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Calls Cost Basis: $24,317.34
= ($127.12 - $5.54) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,106.66
= ($5.54 * 200 shares) - $1.34
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $123.00 strike price at the Sept. 1st expiration): -$824.00
= ($123.00 - $127.12) * 200 shares

Total Net Profit: +$282.66
= (+$1,106.66 options income +$0.00 dividend income - $824.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.2%
= +$282.66/$24,317.34
Potential Equivalent Annualized Return-on-Investment: +38.6%
= (+$282.66/$24,317.34) * (365/11 days)

2.  Bank of America Corporation (BAC) -- New Covered Calls Position
The buy/write transaction was as follows:

8/21/2023 Bought 500 shares of Bank of America Corporation stock @ $28.93 per share.
8/21/2023 Sold 5 BAC September 8th, 2023 $28.00 Call options @ $1.21 per share.
Note: The Implied Volatility of these Calls was 26.0 when this position was established.
8/31/2023 Upcoming ex-dividend of $.24 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Calls Net Investment: $13,863.35
= ($28.93 - $1.21) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$601.65
= ($1.21 * 500 shares) - $3.35 commission
(b) Dividend Income (If BAC shares assigned on 8/30/2023, the last business day prior to the 8/31/2023 ex-dividend date): = +$0.00; or
(b) Dividend Income (If BAC shares assigned at the 9/8/2023 options expiration): +$120.00
= $.24 per share x 500 shares
(c) Capital Appreciation (If BAC shares assigned early on 8/31/2023): -$465.00
= ($28.00 - $28.93) * 500 shares; or
(c) Capital Appreciation (If shares above $28.00 strike price at the 9/8/2023 options expiration): -$465.00
= ($28.00 -$28.93) * 500 shares

1. Potential Net Profit (If Bank of America shares assigned on 8/30/2023, the day prior to the Sept. 1st ex-dividend date): +$136.65
= (+$601.65 options income +$0.00 dividend income - $465.00 capital appreciation)
2. Potential Net Profit (If BAC price is above the $28.00 strike price at the September 8th options expiration): +$256.65
= (+$601.65 options income +$120.00 dividend income - $465.00 capital appreciation)

1. Absolute Return-on-Investment (If BAC shares assigned on 8/30/2023, the day prior to the 8/31 ex-dividend date): +1.0%
= +$136.65/$13,863.35
Equivalent Annualized Return-on-Investment (If assigned early on day prior to ex-div date): +36.0%
= (+$136.65/$13,863.35) * (365/10 days)

2. Absolute Return-on-Investment (If BAC price is above $28.00 strike price at the Sept. 8th options expiration): +1.9%
= +$256.65/$13,863.35
Equivalent Annualized Return (If assigned on the 9/8/2023 options expiration date): +37.5%
= (+$256.65/$13,863.35) * (365/18 days)

3.  McDonald's Corporation (MCD) -- New Covered Call Position
The buy/write transaction was as follows:

8/21/2023 Bought 100 shares of McDonald's Corporation stock @ $279.37 per share 
8/21/2023 Sold 1 MCD Sept. 8th, 2023 $275.00 Call option @ $6.39 per share
Note: The Implied Volatility of these Calls was 14.8 when this position was established.
8/31/2023 Upcoming ex-dividend of $1.52 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Calls Net Investment: $27,298.67
= ($279.37 - $6.39) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$638.33
= ($6.39 * 100 shares) - $.67 commission
(b) Dividend Income (If MCD shares assigned on 8/30/2023, the last business day prior to the 8/31/2023 ex-dividend date): = +$0.00; or
(b) Dividend Income (If MCD shares assigned at the 9/8/2023 options expiration): +$152.00
= $1.52 per share x 100 shares
(c) Capital Appreciation (If MCD shares assigned early on 8/31/2023): -$437.00
= ($275.00 - $279.37) * 100 shares; or
(c) Capital Appreciation (If shares above $275.00 strike price at the Sept. 8th options expiration): -$437.00
= ($275.00 -$279.37) * 100 shares

1. Potential Net Profit (If McDonald's shares assigned on 8/30/2023, the day prior to the August 31st ex-dividend date): +$201.33
= (+$638.33 options income +$0.00 dividend income - $437.00 capital appreciation)
2. Potential Net Profit (If McDonald's stock price is above the $275.00 strike price at the September 8th options expiration): +$353.33
= (+$638.33 options income +$152.00 dividend income - $437.00 capital appreciation)

1. Absolute Return-on-Investment (If MCD shares assigned on 8/30/2023, the day prior to the August 31st ex-dividend date): +0.7%
= +$201.33/$27,298.67
Equivalent Annualized Return-on-Investment (If assigned early on day prior to ex-div date): +26.9%
= (+$201.33/$27,298.67) * (365/10 days)

2. Absolute Return-on-Investment (If MCD price is above $275.00 strike price at the Sept. 8th options expiration): +1.3%
= +$353.33/$27,298.67
Equivalent Annualized Return-on-Investment (If assigned on the September 8th, 2023 options expiration date): +26.2%
= (+$353.33/$27,298.67) * (365/18 days)