As detailed below, the return-on-investment results are: -1.9% absolute return-on-investment (equivalent to -48.8% annualized return-on-investment) for the 14 days of this investment.
T-Mobile US, Inc. (TMUS) -- New Covered Call Position
5/26/2026 Bought 100 T-Mobile shares @ $188.74.
5/26/2026 Sold 1 T-Mobile 6/5/2026 $185.00 Call option @ $5.59 per share. The Implied Volatility of the Call option was 29.3 when this transaction was executed.
5/29/2026 Ex-dividend of $1.02 per share.
6/5/2026 One T-Mobile Call option closed out-of-the-money, so the Call options expired and 100 T-Mobile shares remained in the Covered Calls Advisor Portfolio.
6/9/2026 Closed out this T-Mobile Covered Call position by selling the 100 shares at $178.70 per share.
The overall performance result (including commission) for this Covered Call position is as follows:
T-Mobile Covered Call Cost Basis: $18,315.67
= ($188.74 - $5.59) * 100 shares + $.67 commission
Net Profit Components:
(a) Options Income: +$559.00
= ($5.59 * 100 shares)
(b) Dividend Income: +$102.00
= ($1.02 dividend per share x 100 shares)
(c) Capital Loss (100 shares sold at $178.70 per share): -$1,004.00
+($178.70 stock selling price - $188.74 stock purchase price) * 100 shares
Total Net Loss: -$343.00
= (+$559.00 option income + $102.00 dividend income - $1,004.00 capital appreciation)
Absolute Return-on-Investment: -1.9%
= -$343.00/$18,315.67
Annualized Return-on-Investment: -48.8%
= (-$343.00/$18,315.67) x (365/14 days)
