Continuation of Covered Call Position in Humana Inc.

The Covered Calls Advisor Portfolio has a Covered Calls position in Humana Inc. (ticker HUM) which expired last Friday with the stock at $253.77 which was below the $255.00 strike price.  Early in this morning's trading session, when the stock price had declined further to $244.65, this position was continued by rolling down to the April 17th, 2025 monthly options expiration at the $240.00 strike price by selling-to-open one Humana Call at $23.40 per share.   

As detailed below, a potential outcome for this Humana investment if the stock is in-the-money and therefore assigned on the options expiration date is +7.5% absolute return-on-investment over 28 days (equivalent to +97.7% annualized-return-on-investment) if the stock closes above the $240.00 strike price on the 4/17/2025 options expiration date.   This position demonstrates that if the stock price remains in-the-money on the 4/17/2025 options expiration date, the Humana shares will be sold at the $240.00 strike price which is a substantial 9.9% decline below the original stock purchase price.  However, by selling short-term in-the-money strike prices, the Call premium income received would exceed the 9.9% stock price decline so that a net annualized positive return-on-investment of +97.7% would still be achieved.  The details showing this potential return-on-investment result are as follows:

Humana Inc. (HUM) -- Continuation of Covered Call Position
The simultaneous buy/write transactions was as follows:
3/20/2025 Bought 100 shares of Humana Inc. stock @ $266.35 per share 
3/20/2025 Sold 1 Humana April 4th, 2025 $255.00 Call option @ $20.50 per share
3/28/2025 Ex-dividend at $.885 per share
4/4/2025 Humana stock price was below the $255.00 strike price, so the Call expired and the 100 Humana shares remained in the Covered Calls Advisor Portfolio.
4/7/2025 Continued this Humana Inc. Covered Call position by selling one April 17th, 2025 $240.00 Call option @ $23.40 per share when the stock was trading today at $244.65.  The Implied Volatility of this Call was an amazingly high 133.6 today when it was sold.  

A potential overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $24,585.67
= ($266.35 - $20.50) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$4,388.66
= ($20.50 + $23.40)* 100 shares - $1.34 commissions
(b) Dividend Income: +$88.50
= $.885 dividend per share x 100 shares
(c) Capital Appreciation (If Humana stock is above the $240.00 strike price and therefore assigned on the 4/17/2025 option expiration date): -$2,635.00
= ($240.00 strike price - $266.35 stock purchase price) * 100 shares

Potential Net Profit (If stock price is above its $240.00 strike price at the 4/17/2025 options expiration date): +$1,842.16
= (+$4,388.66 options income +$88.50 dividend income - $2,635.00 capital appreciation) 

Potential Absolute Return-on-Investment: +7.5%
= +$1,842.16/$24,585.67
Potential Equivalent Annualized Return-on-Investment: +97.7%
= (+$1,842.16/$24,585.67) * (365/28 days)