Established Covered Call in Vistra Corporation

Today a Covered Call position of 15 days duration was established in Vistra Corporation (ticker VST).  My net buy/write limit order at $152.40 was executed by simultaneously purchasing one hundred shares at $165.65 and selling one December 26th, 2025 weekly Call option at the $155.00 strike price at $13.25 per share, which provides a $2.60 per share = [$13.25 Call option premium received - ($165.65 stock purchase price - $155.00 option strike price)] time value profit potential.  A moderately in-the-money Covered Call position was established with the probability that Vistra's stock will close in-the-money on the 12/26/2025 options expiration date was 72.6% when this transaction was executed.  As preferred, the next earnings report on February 26th, 2026 is after the December 26th, 2025 options expiration date. 

In addition to the $2.60 potential time value decay profit at assignment for this position, Vistra Corp. also goes ex-dividend on December 22nd at $.227 per share (a modest 0.5% dividend yield) which is prior to the December 26th options expiration date -- so this dividend is included in the potential return-on-investment results detailed below. 

Vistra is one of the largest power producers and retail energy providers in the U.S.  Following th 2024 Energy Harbor acquisition, Vistra owned 41 gigawatts of nuclear, coal, natural gas, solar, and energy storage assets.  Its retail electricity business serves 5 million customers in 20 states, including about one-third of all Texas electricity consumers.  It has a secular growth opportunity since electricity demand will likely be the biggest bottleneck in the build out of new data centers. The average target price by the 21 analysts currently following Vistra is $231.32 (+39.6% above today's stock purchase price).

As detailed below, two potential return-on-investment results are: (1) +1.8% absolute return-on-investment (equivalent to +59.7% annualized return-on-investment for the next 11 days) if Vistra's stock is assigned on Friday, December 19th (the last trading day prior to the December 22nd, 2025 ex-dividend date; OR (2) +1.9% absolute return-on-investment (equivalent to +47.4% annualized return-on-investment for the next 15 days) if Vistra's share price is in-the-money (i.e. above the $155.00 strike price) and therefore assigned on its December 26th, 2025 options expiration date.   

Vistra Corporation (VST) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
12/11/2025 Bought 100 Vistra Corporation shares at $165.65.
12/11/2025 Sold 1 Vistra 12/26/2025 $155.00 Call option @ $13.25 per share.  The Implied Volatility of these Calls was 52.6% when this position was established.  
12/22/2025 Ex-dividend at $.227 per share.

Two possible overall performance results (including commissions) for this Vistra Covered Call position is as follows:
Covered Call Net Investment: $15,240.67
= ($165.65 - $13.25) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,339.33
= ($13.40 * 100 shares) - $.67 commission
(b) Dividend Income: (if stock assigned early on the last trading day prior to the 12/22/2025 ex-dividend date): +$0.00
(b) Dividend Income: (if stock is in-the-money and therefore assigned on the 12/26/2025 options expiration date): +$22.70

= $.227 per share x 100 shares

(c) Capital Appreciation (If 100 Vistra shares assigned either on the last trading day prior to the ex-dividend date or on the 12/26/2025 options expiration date): -$1,065.00
+($155.00 strike price - $165.65 stock purchase price) * 100 shares

1. Total Net Profit Potential (If 100 Vistra shares are assigned early on 12/19/2025 which is the last trading day prior to the ex-dividend date on 12/22/2025): +$274.33
= (+$1,339.33 options income + $0.00 dividend income - $1,065.00 capital appreciation); OR

2. Total Net Profit Potential (If 100 Vistra shares in-the-money and therefore assigned at the $155.00 strike price at the options expiration date): +$297.03
= (+$1,339.33 options income + $22.70 dividend income - $1,065.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If 100 Vistra shares are assigned early on 11/19/2025 which is the last trading day prior to the ex-dividend date on 12/22/2025) : +1.8%
= +$274.33/$15,240.67
Potential Annualized Return-on-Investment: +59.7%
= (+$274.33/$15,240.67) * (365/11 days); OR 

2. Potential Absolute Return-on-Investment (If 100 Vistra shares in-the-money and therefore assigned at the $155.00 strike price at the 12/26/2025 options expiration date): +1.9%
= +$297.03/$15,240.67
Potential Annualized Return-on-Investment: +47.4%
= (+$297.03/$15,240.67) * (365/15 days)