Covered Calls Position Established in Pinterest Inc.

This afternoon a small-dollar-value and short-term Covered Calls position was established in Pinterest Inc. (ticker PINS) at the $22.00 strike price and for the April 17th, 2025 options expiration date.  My net debit limit order at $21.50 was transacted when 300 shares were purchased at $24.95 and 3 4/17/2025 $22.00 Calls were sold simultaneously at $3.45 per share.  The extrinsic value (which represents the maximum profit potential for this position) was $.50 per share [$3.45 Call options premium - ($24.95 stock purchase price - $22.00 strike price)].  This limit order was filled at 1:33 pm ET and the probability that this position will be in-the-money and therefore assigned on its options expiration date was 75.2% when this order was transacted.

As detailed in the table below of my Next Year and 5-Year PEG Ratios stock screener, Pinterest meets every filter criterion.  Also, the high potential annualized return-on-investment potential for this position is a direct result of the very high 103.9% implied volatility in these Call options when the buy/write transaction was executed.

As detailed below, the potential return-on-investment result is +2.3% absolute return-on-investment in 9 days (equivalent to a +93.0% annualized return-on-investment).  

PINTEREST INC. (PINS) -- New Covered Calls Position

The simultaneous buy/write transaction was as follows:
4/8/2025 Bought 300 shares of Pinterest Inc. stock @ $24.95 per share.  
4/8/2025 Sold 3 Pinterest Inc. April 17th, 2025 $22.00 Call options @ $3.45 per share.
Note: The Implied Volatility of the Call options was 103.9% when this transaction was executed which, as I prefer, is well above the current 49.5 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Calls Cost Basis: $6,452.01
= ($24.95 - $3.45) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,032.99
= ($3.45 * 300 shares) - $2.01
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Pinterest stock is above $22.00 strike price at the 4/17/2025 options expiration date): -$885.00
= ($22.00 strike price - $24.95 stock purchase price) * 300 shares

Total Net Profit Potential: +$147.99
= (+$1,032.99 options income + $0.00 dividend income - $885.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.3%
= +$147.99/$6,452.01
Potential Equivalent Annualized Return-on-Investment: +93.0%
= (+$147.99/$6,452.01) * (365/9 days)