Covered Call Position Established in Alphabet Inc.

A new short-term Covered Call net debit buy/write limit order was transacted in today's late morning trading session in Alphabet Inc. (ticker GOOGL) for the October 2nd, 2026 expiration and at the $330.00 strike price.  The order was placed at a $326.92 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $3.08 per share [$13.75 Call option premium - ($340.67 stock purchase price - $330.00 strike price)].  The probability that this position will be in-the-money and therefore assigned on its options expiration date was 72.8% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 9 days (equivalent to a +38.1% annualized return-on-investment).  

Alphabet Inc. (GOOGL) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
9/23/2026 Bought 100 shares of Alphabet Inc. stock @ $340.67 per share.  
9/23/2026 Sold 1 Alphabet Inc. October 2nd $330.00 Call option @ $13.75 per share.
Note: The Implied Volatility of the Call option was approximately 32.7 when this transaction was executed which, as I prefer, is well above the current 14.7 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $32,692.67
= ($340.67 - $13.75) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,374.33
= ($13.75 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $330.00 strike price at the 10/2/2026 options expiration date): -$1,067.00
= ($330.00 strike price - $340.67 stock purchase price) * 100 shares

Total Net Profit Potential: +$307.33
= (+$1,374.33 option income + $0.00 dividend income - $1,067.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$307.33/$32,692.67
Potential Equivalent Annualized Return-on-Investment: +38.1%
= (+$307.33/$32,692.67) * (365/9 days)