Covered Call Position Established in Microsoft Corporation

Today a Covered Call position was establised in Microsoft Corporation (ticker MSFT).  My buy/write net debit limit order was executed and 100 Microsoft shares were purchased at $403.23 and 1 March 22nd, 2024 $395.00 Call option was sold at $13.31 per share -- a net debit of $389.92 per share.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $5.08 per share [$13.31 Call option premium - ($403.23 stock purchase price - $395.00 strike price)].  The Delta was 65.9 which closely approximates the probability of assignment on the options expiration date of 65.9%.  This position avoids the next quarterly earnings report on April 30th which is more than a month after the March 22nd options expiration date. 

As detailed below, a potential outcome for this Microsoft Corporation investment is +1.3% absolute return-on-investment for the next 17 days (equivalent to +27.9% annualized-return-on-investment) if the stock closes above the $395.00 strike price on the March 22nd, 2024 options expiration date.

Microsoft Corporation (MSFT) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
3/5/2024 Bought 100 shares of Microsoft stock @ $403.23 per share.  
3/5/2024 Sold 1 MSFT March 22nd, 2024 $395.00 Call option @ $13.31 per share.

A possible overall performance result (including commissions) if this position is assigned on its 3/22/2024 option expiration date is as follows:
Microsoft Covered Call Net Investment: $38,992.67
= ($403.23 - $13.31) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,330.33
= ($13.31 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Microsoft stock is above the $395.00 strike price at the March 22nd option expiration date): -$823.00
= ($395.00 - $403.23) * 100 shares

Potential Total Net Profit (If assigned at expiration): +$507.33
= (+$1,330.33 option income + $0.00 dividend income - $823.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.3%
= +$507.33/$38,992.67
Potential Equivalent Annualized-Return-on-Investment: +27.9%
= (+$507.33/$38,992.67) * (365/17 days)