Established Covered Calls Position in Match Group Inc.

At 3:23pm this afternoon, my buy/write limit order for Match Group Inc. (ticker MTCH) was executed.  My net debit limit price was $33.60 and six hundred shares were purchased at $35.28 and six April 12th, 2024 weekly Call options were sold at $1.68 per share at the $34.00 strike price.  The time value was $.40 per share = [$34.00 strike price - ($35.28 stock purchase price - $1.68 Call options price)].   An in-the-money Covered Calls position was established with the probability that the Calls will be in-the-money and therefore assigned on the options expiration date was 72.0%.  A Covered Calls position was preferable to a Cash-Secured Puts position since the $.40 time value of the Calls exceeded the $.34 time value of the comparable Puts.  As desired, there is no earnings report prior to the options expiration date.

Match Group is the leading online dating services company worldwide including several brands that include Tinder, Match, and Hinge.  Match is profitable and their earnings per share and revenues are now achieving regular quarterly revenue and profit increases based on their worldwide presence and their growth opportunities (especially in Asia but also in Europe).  Analysts' Price to Consensus Target is +24.7% above today's $35.28 stock purchase price.  Also, Match Group meets all filters in two of my stock screeners: (1) Acquirers' Multiple; and (2) Future 5-Year PEG Ratios.

As detailed below, the potential return-on-investment results for this Match Group Inc. Covered Calls position is +1.2% absolute return-on-investment (equivalent to +42.7% annualized return-on-investment for the next 10 days) if the stock is assigned on the April 12th, 2024 options expiration date.

Match Group Inc. (MTCH) -- New Covered Calls Position

The buy/write transaction was:
4/2/2024 Bought 600 Match Group Inc. shares @ $35.28.
4/2/2024 Sold 6 MTCH 4/12/2024 $34.00 Call options @ $1.68 per share.  The Implied Volatility of these Calls was 34.4 when this transaction was made.

An overall performance result (including commissions) for this Match Group Covered Calls position if the stock price is above the $34.00 strike price on the options expiration date is as follows:
Match Group Covered Calls Net Investment: $20,164.02
= ($35.28 - $1.68) * 600 shares + $4.02 commission

Net Profit:
(a) Options Income: +$1,003.98
= ($1.68 * 600 shares) - $4.02 commission
(b) Dividend Income: +$0.00
= ($0.00 dividends per share x 600 shares)
(c) Capital Appreciation (If MTCH shares assigned at $34.00 strike price at expiration): -$768.00
+($34.00 strike price - $35.28 stock purchase price) * 600 shares

Total Net Profit (If options exercised on the 4/12/2024 options expiration date): +$235.98

= (+$1,003.98 options income +$0.00 dividend income -$768.00 capital appreciation)

Potential Absolute Return-on-Investment (If the Match Group Inc. shares are assigned at the $34.00 strike price at the April 12th, 2024 options expiration date): +1.2%

= +$235.98/$20,164.02

Potential Annualized Return-on-Investment (If 600 Match Group shares assigned at $34.00 at the 4/12/2024 options expiration date): +42.7%

= (+$235.98/$20,164.02) * (365/10 days)