Continuation of Covered Calls Positions in NetApp Inc. and Nvidia Corporation

Last Friday, my Covered Calls positions in NetApp Inc. (ticker NTAP) and Nvidia Corporation (ticker NVDA) closed out-of-the-money, so the Call options expired and the shares remained in the Covered Calls Advisor Portfolio.  This morning, I decided to continue both of these Covered Calls positions by selling Call options by rolling-down-and-out two weeks to the April 25th, 2025 options expiration dates.  The NetApp strike price went from the original $86.00 strike price to the $84.00 strike and the Nvidia strike price went from the original $120.00 strike price to the $115.00 strike.  Despite the stock price declines for both companies since these positions were established, because conservative in-the-money Covered Calls were initially established, as detailed below they could both result in profitable return-on-investments if assigned on their 4/25/2025 options expiration date.  The transactions-to-date for these positions as well as the potential return-on-investment results if these positions are in-the-money and therefore assigned on their 4/25/2025 options expiration date are as follows:

1. NetApp Inc. (NTAP) -- Continuation of Covered Calls Position
The simultaneous buy/write transaction was:
3/28/2025 Bought 200 NetApp Inc. shares @ $88.78.
3/28/2025 Sold 2 NetApp 4/11/2025 $86.00 Call options @ $3.70 per share.
Note: the Implied Volatility of the Call options was 29.5 when this position was established.
4/4/2025 Quarterly ex-dividend of $.52 per share.
4/11/2025 Two hundred NetApp shares closed below the $86.00 strike price at $82.65, so the 2 Call options expired and the 200 NTAP shares remain in the Covered Calls Advisor Portfolio.

4/14/2025 Continued this NetApp Covered Calls position by selling 2 April 25th, 2025 $84.00 Calls at $2.90 per share when the stock was trading at $83.84 per share.  

A possible overall performance result (including commissions) for this NetApp Inc. Covered Calls position if the stock is in-the-money (i.e. above the $84.00 strike price) on its 4/25/2025 options expiration date is as follows:
Covered Calls Cost Basis: $17,017.34
= ($88.78 - $3.70) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,317.32
= ($3.70 + $2.90) * 200 shares - $2.68 commissions
(b) Dividend Income: +$104.00
= ($.52 dividend per share x 200 shares)

(c) Capital Appreciation (If shares assigned at the $84.00 strike price on its 4/25/2025 options expiration date): -$956.00
+($84.00 strike price - $88.78 stock purchase price) * 200 shares

Total Net Profit Potential (If NTAP shares assigned at $84.00 at the April 25th, 2025 expiration): +$465.32

= (+$1,317.32 options income + $104.00 dividend income - $956.00 capital appreciation)

Potential Absolute Return-on-Investment (If NetApp shares assigned on the April 25th, 2025 options expiration date): +2.7%

= +$465.32/$17,017.34

Potential Annualized Return-on-Investment (If NetApp shares assigned at $84.00 at the April 25th, 2025 options expiration date): +35.6%

= (+$465.32/$17,017.34) * (365/28 days)

  

2. Nvidia Corporation (NVDA) -- Continuation of 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.

4/11/2025 Three hundred Nvidia shares closed below the $120.00 strike price at $110.71, so the three Call options expired and the 300 Nvidia shares remain in the Covered Calls Advisor Portfolio.

4/14/2025 Continued this Nvidia Corporation Covered Calls position by selling 3 April 25th, 2025 $115.00 Calls at $3.35 per share when the stock was trading at $112.24 per share.  

A possible overall performance result (including commissions) for this Nvidia Corp. Covered Calls position if the stock is in-the-money (i.e. above the $115.00 strike price) on its 4/25/2025 options expiration date is as follows:
Covered Calls Net Investment: $34,655.01
= ($120.39 - $4.88) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$2,464.98
= ($4.88 + $3.35) * 300 shares - $4.02 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Nvidia shares assigned at the $115.00 strike price on its 4/25/2025 options expiration date): -$1,617.00
+($115.00 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 $115.00 strike price at the 4/25/2025 options expiration date): +$847.98
= (+$2,464.98 options income + $0.00 dividend income - $1,617.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.4%
= +$847.98/$34,655.01
Potential Annualized Return-on-Investment: +27.9%
= (+$847.98/$34,655.01) * (365/32 days)