Established Covered Calls in Nvidia Corporation

Today a Covered Calls position was established in Nvidia Corporation (ticker NVDA). Three hundred shares were purchased at $120.39 and three April 11th, 2025 weekly Call options were sold at the $120.00 strike price at $4.88 per share--a buy/write net debit amount of $115.51 per share which provides a $4.49 per share time value profit potential.  

As detailed below, a potential return-on-investment result is +3.9% absolute return-on-investment (equivalent to +78.7% annualized return-on-investment for the next 18 days) if the Nvidia share price is in-the-money (i.e. above the $120.00 strike price) and therefore assigned on its April 18th, 2025 options expiration date.  

Nvidia Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
3/24/2025 Bought 300 Nvidia Corporation shares at $120.39.

3/24/2025 Sold 3 NVDA 4/11/2025 $120.00 Call options @ $4.88 per share.  The Implied Volatility of the Calls was 49.9 when these Calls were sold.

A possible overall performance result (including commissions) for this Nvidia Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $34,655.01
= ($120.39 - $4.88) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$1,461.99
= ($4.88 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Nvidia shares assigned at the $120.00 strike price at expiration): -$117.00
+($120.00 strike price - $120.39 stock purchase price) * 300 shares

Total Net Profit Potential (If 300 Nvidia shares in-the-money and therefore assigned at the $120.00 strike price at the options expiration date): +$1,344.99
= (+$1,461.99 options income + $0.00 dividend income - $117.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.9%
= +$1,344.99/$34,655.01
Potential Annualized Return-on-Investment: +78.7%
= (+$1,344.99/$34,655.01) * (365/18 days)