Continuation of Covered Calls Position in Wells Fargo & Company

The Covered Calls Advisor Portfolio has a Covered Calls position in Wells Fargo & Company (ticker WFC) which expired out-of-the-money at last Friday's options expiration.  Today this position was continued by rolling out to this Friday's February 16th, 2024 monthly options expiration at the same $49.00 strike price by selling-to-open four Calls at $.41 per share when the price of Wells Fargo stock was $48.57.  

As detailed below, a potential outcome for this Wells Fargo investment if the stock is in-the-money and therefore assigned on the options expiration date is +2.1% absolute return-on-investment over 21days (equivalent to +36.6% annualized-return-on-investment) if the stock closes above the $49.00 strike price on the Feb. 16th, 2024 options expiration date.  The transactions history of this Wells Fargo Covered Calls position so far along with a potential return-on-investment result if the stock is assigned on the February 16th, 2024 options expiration date is as follows:

Wells Fargo & Company (WFC) -- Continuation of Covered Calls Position
The buy/write transaction was:

1/26/2024 Bought 400 Wells Fargo shares @ $50.06
1/26/2024 Sold 4 Wells Fargo 2/9/2024 $49.00 Call options @ $1.34
2/1/2024 Upcoming quarterly ex-dividend of $.35 per share.

2/9/2024 Four WFC $49.00 Calls expired with the stock was out-of-the-money at $48.06.

2/12/2024 Sold 4 February 16th, 2024 $49.00 Calls at $.41 per share when the WFC stock price was $48.57.

A possible overall performance result (including commissions) for this Wells Fargo Covered Calls position is as follows:
Covered Calls Net Investment: $19,490.68
= ($50.06 - $1.34) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$694.64
= ($1.34 + $.41) * 400 shares - $5.36 commissions
(b) Dividend Income: +$140.00
= ($.35 dividend per share x 400 shares)

(c) Capital Appreciation (If shares assigned at $49.00 strike price at the 2/16/2024 options expiration): -$424.00
+($49.00 - $50.06) * 400 shares

Total Net Profit (If Wells Fargo shares assigned at $49.00 at the February 16th, 2024 expiration): +$410.64

= (+$694.64 options income +$140.00 dividend income -$424.00 capital appreciation)

Absolute Return-on-Investment (If Wells Fargo shares assigned at $49.00 at the 2/16/2024 options expiration): +2.1%

= +$410.64/$19,490.68

Annualized Return-on-Investment (If Wells Fargo shares assigned at $49.00 at the 2/16/2024 expiration): +36.6%

= (+$410.64/$19,490.68) * (365/21 days)