Covered Call Position Established in United Therapeutics Corporation

Today a Covered Call position was established in United Therapeutics Corporation (ticker UTHR) when my buy/write limit order was executed.  One hundred shares were purchased at $213.13 and 1 February 16th, 2024 Call option was sold at $6.63 per share at the $210.00 strike price.  So, the potential time value profit for this United Therapeutics Covered Call position is $3.50 per share [$6.63 Call options premium - ($213.13 stock purchase price - $210.00 strike price)]. Given my current "Neutral" stock market outlook, a slightly in-the-money Covered Call position was established with a Delta of 61.6 which approximates a 61.6% probability this position will be in-the-money and therefore assigned on the February 16th, 2024 options expiration date. 

United Therapeutics is a biotechnology company focused on the development and commercialization of therapeutic products for patients with cardiovascular conditions, cancer, and infectious diseases. It has five approved products, the most prominent of which treats pulmonary arterial hypertension and additionally United Therapeutics has a strong new product pipeline.  I identified this company since it appeared in both my StockRover Overall stock screener (as shown in the table below it meets all 14 filter criteria) and also my Large-Cap Value+Profitability+Growth screener.  I am also encouraged that the current average price target of the 15 Wall Street analysts that follow UTHR is $289.00 (+35.6% above today's stock purchase price).  Also as preferred, the next quarterly earnings report on February 21st, 2024 is after the Feb. 16th options expiration date.

As detailed below, potential return-on-investment result if the stock is above the $210.00 price on the options expiration date is +1.7% absolute return-on-investment (equivalent to +44.1% annualized return-on-investment for the next 14 days).

United Therapeutics Corporation (UTHR) -- New Covered Call Position

The buy/write transaction was:
2/2/2024 Bought 100 United Therapeutics Corporation shares @ $213.13.
2/2/2024 Sold 1 UTHR 2/16/2024 $210.00 Call option @ $6.63 per share.
Note: the Implied Volatility of the Call option was 26.7 when this buy/write transaction was executed.

A possible overall performance result (including commission) for this Covered Call position is as follows:
Covered Calls Net Investment: $20,667.67
= ($213.13 - $6.63) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$662.33
= ($6.63 * 100 shares) - $.67 commission
(b) Dividend Income: $0.00
(c) Capital Appreciation (If shares assigned at $210.00 strike price at the 2/16/2024 options expiration date): -$313.00
+($210.00 - $213.13) * 100 shares

Total Net Profit (If stock shares assigned at $210.00 strike price at the 2/16/2024 expiration): +$349.33

= (+$662.33 option income +$0.00 dividend income -$313.00 capital appreciation)

Potential Absolute Return-on-Investment): +1.7%

= +$349.33/$20,667.67

Potential Annualized Return-on-Investment: +44.1%

= (+$349.33/$20,667.67) * (365/14 days)