Established Covered Call Position in DICK'S Sporting Goods Inc.

A short-term Covered Call position was established in DICK'S Sporting Goods Inc. (ticker DKS) when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $213.06 was executed.  One hundred shares were purchased at $221.04 and one September 19th, 2025 Call option was sold at $7.98 at the $215.00 strike price.  The potential time value profit is $1.94 per share = [$215.00 strike price - ($221.04 stock purchase price - $7.98 Call option price)].   A moderately in-the-money Covered Calls position was established with the probability that the position will be assigned on the options expiration date was 71.2% when this position was established.  As is my preference, there is no earnings report prior to the options expiration date.

DICK'S goes ex-dividend this Friday which is exactly one week prior to the options expiration date on September 19th at $1.212 per share (a 2.2% annual dividend yield).  As detailed at the bottom of this post, this Covered Call meets all nine criteria of my Dividend Capture Strategy (see here).

As detailed below, two potential return-on-investment results for this DICK'S Sporting Goods Inc. Covered Call position is: (1) +0.9% absolute return (equivalent to +110.4% annualized return-on-investment for the next 3 days) if the stock is assigned early on the day prior to its September 12th ex-dividend date; OR (2) +1.5% absolute return (equivalent to +53.9% annualized return-on-investment for the next 10 days) if DICK'S stock is assigned on the Sept 19th, 2025 options expiration date. 

DICK'S Sporting Goods Inc. (DKS) -- New Covered Call Position

The buy/write transaction was:
9/9/2025 Bought 100 DICK'S Sporting Goods shares @ $221.04
9/9/2025 Sold 1 DKS 9/19/2025 $215.00 Call option @ $7.98 per share.  The Implied Volatility of this DKS Call option was 30.5 when this Covered Call transaction was executed.

Two possible overall performance results (including commissions) for this DICK'S Sporting Goods Covered Call position is as follows:
Covered Call Net Investment: $21,306.67
= ($221.04 - $7.98) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$797.33
= ($7.98 * 100 shares) - $.67 commission
(b) Dividend Income: (If stock assigned early on the day prior to the Sept 12th option expiration date) = +$0.00; OR
(b) Dividend Income: (If stock assigned on the Sept. 19th option expiration date) = +$121.120

= $1.212 per share x 100 shares
(c) Capital Appreciation (If DICK'S shares assigned early on the day prior to the Sept. 12th ex-dividend date): -$604.00
+($215.00 strike price - $221.04 stock purchase price) * 100 shares; OR

(c) Capital Appreciation (If DICK'S shares assigned on the Sept. 19th, 2025 options expiration date): -$604.00
= +($215.00 - $221.04) * 100 shares

1. Total Net Profit (If options exercised early): +$193.33

= (+$797.33 options income +$0.00 dividend income - $604.00 capital appreciation)

2. Total Net Profit (If options exercised on the Sept. 19th, 2025 options expiration date): +$314.53

= (+$797.33 options income +$121.20 dividend income - $604.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If the DICK'S Sporting Goods shares are assigned early on the day prior to the 9/12/2025 options expiration date): +0.9%

= +$193.33/$21,306.67

Potential Annualized Return-on-Investment (If 100 DICK'S shares assigned at the $215.00 strike price on the Sept. 19th, 2025 options expiration date): +110.4%

= (+$314.53/$21,306.67) * (365/3 days)

2. Potential Absolute Return-on-Investment (If the DICK'S Sporting Goods shares are assigned at the $215.00 strike price at the 9/19/2025 options expiration date): +1.5%

= +$314.53/$21,306.67

Potential Annualized Return-on-Investment (If 100 DICK'S shares assigned at the $215.00 strike price on the Sept. 19th, 2025 options expiration date): +53.9%

= (+$314.53/$21,306.67) * (365/10 days)

My Dividend Capture Strategy chart for this DICK'S Covered Call Position (meets all 9 criteria):