Covered Calls Position Established in Aptiv PLC

Early this afternoon, my buy/write limit order for Aptiv PLC (ticker APTV) was executed.  My net debit limit price of $72.64 was executed when two hundred shares were purchased at $77.04 and two April 19th, 2024 Call options were sold at $4.40 per share at the $75.00 strike price.  The potential time value profit was $2.36 per share = [$75.00 strike price - ($77.04 stock purchase price - $4.40 Call options price)].   A slightly in-the-money Covered Calls position was established with a Delta of 63.8 which approximates a 63.8% probability this position will be in-the-money and therefore assigned on the April 19th, 2024 options expiration date.  As desired, the next quarterly earnings report on May 2nd is after the Apr 19th options expiration date.

Aptiv was part of Delphi Automotive until the spin-off of its power systems division in 2017 which became Aptiv PLC (based in Dublin, Ireland).  Aptiv is one of the world's largest vehicle component manufacturers and its customers include all 25 of the leading automotive original equipment manufacturers (OEMs), but with no single company representing more than 10% of revenues.  Their two divisions are Signal and Power Solutions (74%) and Advanced Safety and User Experience (26%).  

As shown in the detailed chart below, Aptiv meets all 18 filters of my Quality+Value+Growth stock screener and of the 18 companies that met all 18 filters (when my metric weightings were applied), Aptiv was the second highest.  Aptiv also met all the filters in both my Future 5-Year PEG Ratios screener and my Stock Rover Overall stock screener.  Aptiv is also now top-rated by Morningstar (5 stars).

As detailed below, the potential return-on-investment results for this Aptiv PLC Covered Calls position is +3.2% absolute return (equivalent to +32.8% annualized return-on-investment for the next 36 days) if the stock is assigned on the April 19th, 2024 options expiration date.

Aptiv PLC (APTV) -- New Covered Calls Position

The buy/write transaction was:
3/14/2024 Bought 200 Aptiv PLC shares @ $77.04
3/14/2024 Sold 2 APTV 4/19/2024 $75.00 Call options @ $4.40 per share.  The Implied Volatility of these Calls was 31.0 when this position was estalished.

A possible overall performance result (including commissions) for this Aptiv Covered Calls position is as follows:
Aptiv Covered Calls Net Investment: $14,529.34
= ($77.04 - $4.40) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$878.66
= ($4.40 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
= ($0.00 dividends per share x 200 shares)
(c) Capital Appreciation (If APTV shares assigned at $75.00 strike price at expiration): -$408.00
+($75.00 - $77.04) * 200 shares

Total Net Profit (If options exercised on the 4/19/2024 options expiration date): +$470.66

= (+$878.66 options income +$0.00 dividend income -$408.00 capital appreciation)

Potential Absolute Return-on-Investment (If the Aptiv shares are assigned at the $75.00 strike price at the April 19th, 2024 options expiration date): +3.2%

= +$470.66/$14,529.34

Potential Annualized Return-on-Investment (If 200 Aptiv PLC shares assigned at $75.00 at the 4/19/2024 options expiration): +32.8%

= (+$470.66/$14,529.34) * (365/36 days)