Established Covered Calls in iShares Bitcoin ETF

Today I established a short-term Covered Calls position in iShares Bitcoin ETF (ticker IBIT).  My net buy/write limit order at $61.90 was executed by simultaneously purchasing two hundred shares at $65.43 and selling two September 26th, 2025 weekly Call options at the $62.50 strike price at $3.53 per share, which provides a $.60 per share = [$3.53 Call options premium received - ($65.43 stock purchase price - $62.50 options strike price)] maximum time value profit potential.  A moderately in-the-money Covered Calls positions was established and the probability that these ETF shares will close in-the-money on the options expiration date was 76.0%.  

The iShares Bitcoin ETF (ticker IBIT) is the largest Bitcoin ETF and it provides direct exposure to the spot price of Bitcoin. It was launched in January 2024 as one of the first U.S.-listed spot Bitcoin ETFs approved by the SEC.  IBIT is a good way for us retail investors to gain exposure to Bitcoin since it holds actual Bitcoin in custody (not futures contracts), thus enabling us to gain exposure to Bitcoin’s price movements through a traditional brokerage account without having to buy or store Bitcoin ourselves (and at a reasonably low annual management fee of .25%).      

As detailed below, a potential return-on-investment result is +1.0% absolute return-on-investment (equivalent to +35.0% annualized return-on-investment for the next 10 days) if the iShares Bitcoin ETF share price is in-the-money (i.e. above the $62.50 strike price) and therefore assigned on its September 26th, 2025 options expiration date.  

iShares Bitcoin ETF (IBIT) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
9/16/2025 Bought 200 iShares Bitcoin ETF shares at $65.43.

9/16/2025 Sold 2 IBIT 9/26/2025 $62.50 Call options @ $3.53 per share.  The Implied Volatility of these Calls was 37.6% when this position was established.  

A possible overall performance result (including commissions) for this iShares Bitcoin ETF Covered Calls position is as follows:
Covered Calls Net Investment: $12,381.34
= ($65.43 - $3.53) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$704.66
= ($3.53 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 iShares Bitcoin ETF shares assigned at the $62.50 strike price at expiration): -$586.00
+($62.50 strike price - $65.43 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 IBIT shares are in-the-money and therefore assigned at the $62.50 strike price at the options expiration date): +$118.66
= (+$704.66 options income + $0.00 dividend income - $586.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.0%
= +$118.66/$12,381.34
Potential Annualized Return-on-Investment: +35.0%
= (+$118.66/$12,381.34) * (365/10 days)