Covered Call Position Closed in Netflix Inc.

Last Friday, the Covered Call position in Netflix Inc. (ticker NFLX) closed out-of-the-money at $100.24 which was well below its $108.00 strike price.  Netflix is now embroiled in an acquisition battle with Paramount for the Warner Brothers Discovery company, which is likely to become a prolonged battle.  During this time period, Netflix stock is unlikely to continue its past bullish trend, so I decided to close out this position by selling the 100 Netflix shares this morning at a market price of $98.16.  Since this was a relatively small investment of only 100 shares, I decided to limit my loss to $784.67 by selling the shares and closing out the position.  The transactions history for this Netflix Covered Call position and its associated return-on-investment results are detailed below.

Netflix Inc. (NFLX) -- Covered Call Position Closed Out

The buy/write net limit order transaction was:
11/19/2025 Bought 100 Netflix Inc. shares at $111.35.

11/19/2025 Sold 1 Netflix 12/5/2025 $108.00 Call option @ $5.35 per share.  The Implied Volatility of these Calls was 35.7% when this position was established.  

12/5/2025 One Netflix $108.00 Call option closed out-of-the-money, so the Call expired and 100 Netflix shares remained in the Covered Calls Advisor Portfolio.

12/8/2025 Closed out this Covered Calls position by selling the 100 Netflix shares at $98.16 per share. 

The overall performance result (including commissions) for this Netflix Covered Call position is as follows:
Covered Call Net Investment: $10,600.67
= ($111.35 - $5.35) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$534.33
= ($5.35 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Loss (100 Netflix shares sold at $98.16 per share): -$1,319.00
+($98.16 selling price - $111.35 stock purchase price) * 100 shares

Total Net Loss: -$784.67
= (+$534.33 option income + $0.00 dividend income - $1,319.00 capital appreciation)

Absolute Return-on-Investment: -7.4%
= -$784.67/$10,600.67
Annualized Return-on-Investment: -142.2%
= (-$784.67/$10,600.67) * (365/19 days)