Covered Calls Position Closed for Oshkosh Corporation

Last Friday, the Covered Calls position in Oshkosh Corporation (ticker OSK) expired out-of-the-money since the closing stock price Friday of $108.65 was below the $110.00 strike price.  Oshkosh's stock price increased in early trading today and I decided to close out the position by selling the 200 Oshkosh shares at $109.08.  The resulting return-on-investment results are detailed below.  These results show that despite the stock declining from its original $112.80 purchase price to $109.08 when it was closed out today, a small but positive return-on-investment profit can still be achieved.  This outcome demonstrates the advantage of hedging a long stock position by selling Call options against the stock (i.e. our Covered Calls strategy) which provides good downside breakeven protection below the original purchase price.  Using my Dividend Capture Strategy also added to the downside protection for this position.

Oshkosh Corporation (OSK) -- Covered Calls Position Closed Out by Decision
The buy/write transaction was:
2/8/2024 Bought 200 Oshkosh Corporation shares @ $112.80.
2/8/2024 Sold 2 OSK 2/16/2024 $110.00 Call options @ $3.40 per share.
Note: Implied Volatility (IV) of the Call options was at 22.6 when this position was transacted which, as preferred, is above the current VIX of 12.9.   
2/14/2024 Ex-dividend of $.46 per share.  The Delta of these Calls was 72.3.
2/16/2024 Two OSK Calls closed below the $110.00 strike price @ $108.65 per share, so the 2 Oshkosh Call options expired and 200 Oshkosh Corp. shares remained in the Covered Calls Advisor Portfolio.
2/21/2024 Closed out this Oshkosh Covered Calls position by selling 200 shares @ $109.08 per share.

The overall performance results (including commissions) for this Oshkosh Covered Calls position are as follows:
Covered Calls Net Investment: $21,881.34
= ($112.80 - $3.40) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$678.66
= ($3.40 * 200 shares) - $1.34 commission
(b) Dividend Income: +$92.00
= ($.46 dividend per share x 200 shares)

(c) Capital Appreciation: -$744.00

+($109.08 stock selling price per share - $112.80 stock purchase price) * 200 shares

Total Net Profit: +$26.66

= (+$678.66 options income +$92.00 dividend income -$744.00 capital appreciation)

Absolute Return-on-Investment: +0.1%

= +$26.66/$21,881.34

Annualized Return-on-Investment: +0.3%

= (+$210.66/$21,881.34) * (365/13 days)