I got Ds in math...I have a BA and am smart, but see things differently. I was ADHD...Could recite a whole album and am good at Jeopardy, but math and art, good luck. I'll take a stab.
Assume it will be one year...Annualized return. Bought 100 shares of BABA for $22,500. Sold it a year from now at $23,000...$500. profit. The option money is $3,900.+$500.=$4,400. $4,400 divided by $22,500.= 19.55% return on the money. If I took the $3,900. and put it into something earning 1% or so, I would get over a 20% return on the money. A LOT OF IFS THERE...
Good explanation. By the way, I think I recall you sold a MCD 210 covered call about a year ago that expired this month. If you held onto that trade through expiration, that was the perfect strike to sell.