Covered Call Position Established in Microsoft Corporation

Early in this morning's trading session (at 9:35am ET), I purchase 100 Microsoft Corporation (ticker MSFT) shares at $395.625.  Seven minutes later at 9:42am, I sold 1 Microsoft April 2nd, 2026 Call option at the $185.00 strike price at $17.55 per share (when the stock price was $397.70) to establish a Covered Call position.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $6.925 per share [$17.55 Call option premium - ($395.625 stock purchase price - $385.00 strike price)].  The probability of assignment on the options expiration date was 70.1% when this Covered Call position was established which is a moderately conservative position established 2.8% in-the-money.  This position avoids the next quarterly earnings report on April 29th which is after the April 2nd options expiration date. 

Microsoft is currently top-rated (5 stars) by both Morningstar and CFRA.  LSEG Stock Reports Plus rates it at 9 in both Overall and Fundamentals (on a scale of 1 to 10).  The average analysts' target price is $595.55 which is +50.5% above today's stock purchase price.  Microsoft also appeared in my "Current and Future Earnings Growers" stock screener (detailed results shown in the table below); and I am also pleased that there are no red flags (i.e. "Warnings") in StockRover's Insight Panel for Microsoft Corporation.  

As detailed below, a potential outcome for this Microsoft Corporation investment is +1.8% absolute return-on-investment for the next 15 days (equivalent to +44.5% annualized-return-on-investment) if the stock closes above the $385.00 strike price on the April 2nd, 2026 options expiration date.

Microsoft Corporation (MSFT) -- New Covered Call Position

This Covered Call position transactions are as follows:
3/18/2026 Bought 100 shares of Microsoft stock @ $395.625 per share.  
3/18/2026 Sold 1 MSFT April 2nd, 2026 $385.00 Call option @ $17.55 per share.  The Implied Volatility of the Call was 29.8 when this transaction was executed.

A possible overall performance result (including commissions) if this position is assigned on its 4/2/2026 option expiration date is as follows:
Microsoft Covered Call Net Investment: $37,808.17
= ($395.625 - $17.55) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,754.33
= ($17.55 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Microsoft stock is above the $385.00 strike price at the April 2nd, 2026 option expiration date): -$1,062.50
= ($385.00 strike price - $395.625 stock purchase price) * 100 shares

Potential Total Net Profit (If assigned at expiration): +$691.83
= (+$1,754.33 option income + $0.00 dividend income - $1,062.50 capital appreciation)

Potential Absolute Return-on-Investment: +1.8%
= +$691.83/$37,808.17
Potential Equivalent Annualized-Return-on-Investment: +44.5%
= (+$691.83/$37,808.17) * (365/15 days)