Established Covered Calls Position in Match Group Inc.

A Covered Calls position was established in Match Group Inc. (MTCH) when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $40.86 was executed.  Five hundred shares were purchased at $43.07 and five August 18th, 2023 Call options were sold at $2.21 at the $41.50 strike price.  The time value was $.64 per share = [$41.50 strike price - ($43.07 stock purchase price - $2.21 Call options price)].   Given my current cautious stock market outlook, a moderately in-the-money Covered Calls position was established with a Delta of 70.3 which approximates a 70.3% probability this position will be in-the-money and therefore assigned on the August 18th, 2023 options expiration date.  As desired, there is no earnings report prior to the options expiration date.

Two similar prior Covered Calls position in the Match Group were assigned on their options expiration dates and I decided to follow-up today with a similar position since I remain bullish on the company's prospects.  The Match Group is the leading online dating services company worldwide including several brands that include Tinder, Match, and Hinge.  Match is profitable and their earnings per share and revenues seem to be at an inflection point where they have begun to obtain regular quarterly revenue and profit increases based on their worldwide presence and their growth opportunities (especially in Asia but also in Europe).  The primary catalyst for my increasing optimism stems primarily from the dynamic leadership of their relatively new CEO, Bernard Kim, who has been in his new position for only slightly more than one year now but who has previously demonstrated outstanding performance in his prior CEO role at Zynga.  In addition, Match meets all five of my current primary evaluation criteria for identifying worthwhile candidates for investing:

As detailed below, the potential return-on-investment results for this Match Group Inc. Covered Calls position is +1.5% absolute return (equivalent to +47.1% annualized return-on-investment for the next 12 days) if the stock is assigned on the August 18th, 2023 options expiration date.

Match Group Inc. (MTCH) -- New Covered Calls Position

The buy/write transaction was:
8/7/2023 Bought 500 Match Group Inc. shares @ $43.07
8/7/2023 Sold 5 MTCH 8/18/2023 $41.50 Call options @ $2.21 per share.

A possible overall performance result (including commissions) for this Match Group Covered Calls position is as follows:
Match Group Covered Calls Net Investment: $20,433.35
= ($43.07 - $2.21) * 500 shares + $3.35 commission

Net Profit:
(a) Options Income: +$1,101.65
= ($2.21 * 500 shares) - $3.35 commission
(b) Dividend Income: +$0.00
= ($0.00 dividends per share x 500 shares)
(c) Capital Appreciation (If MTCH shares assigned at $41.50 strike price at expiration): -$785.00
+($41.50 - $43.07) * 500 shares

Total Net Profit (If options exercised on the 8/18/2023 options expiration date): +$316.65

= (+$1,101.65 options income +$0.00 dividend income -$785.00 capital appreciation)

Potential Absolute Return-on-Investment (If the Match Group Inc. shares are assigned at the $41.50 strike price at the August 18th, 2023 options expiration date): +1.5%

= +$316.65/$20,433.35

Potential Annualized Return-on-Investment (If 500 Match Group shares assigned at $41.50 at the 8/18/2023 options expiration): +47.1%

= (+$316.65/$20,433.35) * (365/12 days)