Established Covered Calls in Nvidia Corporation

This afternoon at 2:50pm ET, a short-term Covered Calls position was established in Nvidia Corporation (ticker NVDA).  My net buy/write limit order at $165.67 was executed by simultaneously purchasing three hundred shares at $176.10 and selling three August 29th, 2025 weekly Call options at the $170.00 strike price at $10.43 per share, which provides a $4.33 per share = [$10.43 Call options premium received - ($176.10 stock purchase price - $170.00 options strike price)] time value profit potential.  An in-the-money Covered Calls positions was established with the probability that the stock will close in-the-money on the options expiration date was 62.5%. 

This is a risky short-term position that I'm willing to take since it is accompanied by a very high potential reward.  Nvidia's Q2 earnings report is after market close next Wednesday, August 27th, 2025 which is prior to the August 29th options expiration date.  The Implied Volatility of the Calls was very high at 59.8, so the potential annualized return-on-investment of +95.2% detailed below is also very high.  

Nvidia continues to be the leading AI-focused semiconductor company and their innovations continue.  Nvidia is my top-ranked megacap technology company since their primary customers are other IT behemoths such as Microsoft, Alphabet, Amazon, Meta, and Oracle each of whom is continuing with substantial annual increases in their capital expenditure purchases with Nvidia.  Nvidia is the primary revenue beneficiary from the huge expenditures of their fellow megacap technology companies.  

So, because of my continuing bullish outlook for Nvidia's potential growth in both revenue and earnings, this position continues my recent practice of establishing short-term in-the-money Covered Calls positions in Nvidia. I prefer short-term (less than 30 days duration) positions since: (1) the potential annualized return-on-investment is higher for shorter-duration positions; and (2) short-term positions provide us a more frequent opportunity to re-evaluate the existing positions, so we can react quickly if news causes a substantial stock price volatility -- whether bullish or bearish. 

 

As detailed below, a potential return-on-investment result is +2.6% absolute return-on-investment (equivalent to +95.2% annualized return-on-investment for the next 10 days) if the Nvidia share price is in-the-money (i.e. above the $170.00 strike price) and therefore assigned on its August 29th, 2025 options expiration date.  

Nvidia Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
8/19/2025 Bought 300 Nvidia Corporation shares at $176.10.

8/19/2025 Sold 3 NVDA 8/29/2025 $170.00 Call options @ $10.43 per share.  

A possible overall performance result (including commissions) for this Nvidia Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $49,703.01
= ($176.10 - $10.43) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$3,126.99
= ($10.43 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Nvidia shares assigned at the $170.00 strike price at expiration): -$1,830.00
+($170.00 strike price - $176.10 stock purchase price) * 300 shares

Total Net Profit Potential (If 300 Nvidia shares in-the-money and therefore assigned at the $170.00 strike price at the options expiration date): +$1,296.99
= (+$3,126.99 options income + $0.00 dividend income - $1,830.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.6%
= +$1,296.99/$49,703.01
Potential Annualized Return-on-Investment: +95.2%
= (+$1,296.99/$49,703.01) * (365/10 days)

Established Covered Calls in Agnico Eagle Mines Ltd.

During the first half-hour of trading today, a Covered Calls position was established in Agnico Eagle Mines Ltd. (ticker symbol AEM) when 200 shares were purchased at $132.71 and 2 September 5th, 2025 Call options were sold at $6.79 per share at the $128.00 strike price.  The buy/write net debit limit order at $125.92 was executed, so the potential time value profit was $2.08 per share [$6.79 Call options premium - ($132.71 stock purchase price - $128.00 strike price)]. There is also an upcoming quarterly ex-dividend of $.40 per share on September 2nd (a current annual dividend yield of 1.2%), so two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment because the ex-dividend is 3 days prior to the September 2nd, 2025 options expiration date.  An in-the-money Covered Calls position was established when the probability of the stock closing in-the-money (and therefore being assigned) on the 9/2/2025 options expiration date was 68.1%. 

Agnico Eagle Mines Ltd., headquartered in Vancouver, Canada is the world's third largest gold mining company, engaged in the exploration, development, and production of precious metals. Their explorations for gold, silver, zinc, and copper in their mines in Canada, Australia, Finland, and Mexico demonstrate their focus on low-risk jurisdictions.  Their four cornerstone assets each produce approximately 350,000-700,000 ounces of gold annually; and they have about 15 years of reserves that includes various opportunities to increase gold production in future years.

The 15 Wall Street analysts that cover Agnico Eagle have an average target price of $149.56 which is +12.7% above today's stock purchase price.  LSEG's analysis provides AEM with their highest ranking of 10 (on a scale of 1 to 10) for both their average score and optimized score.  In addition, Agnico Eagle passed all 15 criteria in my own "Key Metrics for Comparing Companies" stock screener.  

As detailed below, two potential return-on-investment results are: 

•  +1.6% absolute return (equivalent to +40.1% annualized return-on-investment for the next 15 days) if the stock is assigned early (on the last business day prior to the September 2nd, 2025 ex-dividend date); OR 

• +2.0% absolute return (equivalent to +39.8% annualized return-on-investment over the next 18 days) if the stock is assigned on the September 5th, 2025 options expiration date.

Agnico Eagle Mines Ltd. (AEM) -- New Covered Calls Position
The buy/write transaction was:

8/18/2025 Bought 200 Agnico Eagle shares @ $132.71
8/18/2025 Sold 2 Agnico Eagle 9/2/2025 $128.00 Call options @ $6.79
Note: the Implied Volatility of the Call options was 32.8 when this buy/write transaction was executed.
9/2/2025 Upcoming quarterly ex-dividend of $.40 per share

Two possible overall performance results (including commissions) for this Agnico Eagle Mines Covered Calls position are as follows:
Covered Calls Cost Basis: $25,185.34
= ($132.71 - $6.79) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,356.66
= ($6.79 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on September 1st, the last business day prior to the September 2nd ex-dividend date): +$0.00; or
(b) Dividend Income (If Agnico Eagle stock assigned at the September 5th, 2025 expiration): +$80.00         

= ($.40 dividend per share x 200 shares)

(c) Capital Appreciation (If Agnico Eagle Call options assigned early on Sept. 2nd): -$942.00

+($128.00 strike price - $132.71 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $128.00 strike price at the 9/5/2025 options expiration): -$942.00
+($128.00 - $132.71) * 200 shares

1. Total Net Profit [If option exercised early on the last business day prior to the Sept. 2nd ex-dividend date)]: +$414.66

= (+$1,356.66 options income + $0.00 dividend income - $942.00 capital appreciation); or

2. Total Net Profit (If Agnico Eagle shares assigned at $128.00 strike price at the September 5th, 2025 expiration): +$494.66

= (+$1,356.66 + $80.00 - $942.00)

1. Potential Absolute Return-on-Investment (If option exercised early on Sept. 2nd): +1.6%

= +$414.66/$25,185.34

Potential Annualized Return-on-Investment: +40.1%

= (+$414.66/$25,185.34) * (365/15 days); or

2. Potential Absolute Return-on-Investment (If Agnico Eagle shares assigned at $128.00 at the September 5th, 2025 options expiration): +2.0%

= +$494.66/$25,185.34

Potential Annualized Return-on-Investment (If Agnico Eagle shares assigned at the Sept. 5th, 2025 options expiration date): +39.8%

= (+$494.66/$25,185.34) * (365/18 days)

Either outcome would provide an attractive return-on-investment result for this Agnico Eagle investment.  These returns will be achieved as long as the stock is above the $128.00 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $125.52 ($132.71 - $6.79 - $.40) provides 5.4% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this Agnico Eagle position, all nine criteria were met.

August 15th, 2025 Monthly Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with August 15th, 2025 monthly options expirations and all three positions closed with their stock prices in-the-money. The Calls expired yesterday with no remaining value and the Covered Calls were closed out by the stocks being sold at their respective strike prices, so the maximum potential return-on-investment profit on their options expiration dates was achieved for these three positions.  The return-on-investment details for each position is as follows:

1. HCA Healtcare Inc. (HCA) -- +1.6% absolute return-on-investment (equivalent to +28.1% annualized return-on-investment) for the 21 days of this investment.  This HCA Covered Calls position had a $325.00 strike price and it closed at $395.79 yesterday.  The original blog post showing the details of this position is here. 

2. Nvidia Corporation (NVDA) -- +3.5% absolute return-on-investment (equivalent to +41.3% annualized return-on-investment) for the 31 days of this investment.  This Nvidia position had a $162.50 strike price and it closed at $180.45 yesterday.  The blog post showing the details of this position is here.

3. Wells Fargo & Co. (WFC) -- +1.4% absolute return-on-investment (equivalent to +37.5% annualized return-on-investment) for the 14 days of this investment.  This Wells Fargo position had a $76.00 strike price and it closed at $77.10 yesterday.  The blog post showing the details of this position is here. 

As always, I welcome your questions at the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Calls Position Established in Wheaton Precious Metals

This morning a short-term Covered Calls position was established in Wheaton Precious Metals (ticker symbol WPM) when two hundred WPM shares were purchased at $93.59 and two August 22nd, 2025 weekly Call options were sold for $2.55 per share at the $92.00 strike price.  The net debit limit order at $91.04 was executed, so the potential time value profit was $.96 per share [$2.55 Call options premium - ($93.59 stock purchase price - $92.00 strike price)]. There is an upcoming quarterly ex-dividend of $.165 per share (annual dividend yield of 0.7%) next Thursday which is the day prior to the August 22nd options expiration date.  So, potential return-on-investment results for this position, as detailed below, include the possibility of early assignment because the ex-dividend is prior to the August 22nd, 2025 options expiration date.  As preferred by the Covered Calls Advisor, the next quarterly earnings report on November 6th, 2025 is after the options expiration date.  An in-the-money Covered Calls position was established with the probability that the Calls will be in-the-money and therefore assigned on the options expiration date was 63.8%.

As detailed below, a potential return-on-investment result is +1.1% absolute return (equivalent to +64.1% annualized return-on-investment for the next 6 days) if the stock is assigned early next Thursday (the last business day prior to next Friday's August 22nd ex-dividend date); OR +1.2% absolute return (equivalent to +64.4% annualized return-on-investment over the next 7 days) if the stock is assigned on the August 22nd, 2025 options expiration date.


Wheaton Precious Metals (WPM) -- New Covered Calls Position

The buy/write transaction was:
8/15/2025 Bought 200 Wheaton Precious Metals shares @ $93.59
8/15/2025 Sold 2 WPM 8/22/2025 $92.00 Call options @ $2.55
Note: The Implied Volatility of the Call options was 31.3 when this Covered Calls position was established (which as preferred is well above the 14.8 of the S&P 500 Volatility Index--VIX).
8/21/2025 Upcoming quarterly ex-dividend of $.165 per share

Two possible overall performance results (including commissions) for this Wheaton Precious Metals Covered Calls position are as follows:
Covered Calls Cost Basis: $18,209.34
= ($93.59 - $2.55) * 200 shares + $1.34 commissions

Net Profit Components:
(a) Options Income: +$510.00
= ($2.55 * 200 shares)
(b) Dividend Income (If option exercised early on the last business day prior to the August 21st ex-div date): +$0.00; or
(b) Dividend Income (If Wheaton Precious Metals shares assigned at the August 22nd, 2025 expiration): +$33.00
= ($.165 dividend per share x 200 shares)
(c) Capital Appreciation (If WPM assigned early on August 21st, 2025): -$318.00
+($92.00 strike price - $93.59 stock purchase price) * 200 shares ;or
(c) Capital Appreciation (If WPM assigned at the $92.00 strike price at the August 22nd, 2025 options expiration): -$318.00
+($92.00 - $93.59) * 200 shares

1. Total Net Profit [If option exercised early on August 20th (last business day prior to the August 21st ex-dividend date)]: +$192.00

= (+$510.00 options income + $0.00 dividend income - $318.00 capital appreciation); or

2. Total Net Profit (If Wheaton Precious Metals shares assigned at $92.00 strike price at its August 22nd, 2025 expiration): +$225.00

= (+$510.00 + $33.00 dividend income - $318.00)

1. Absolute Return [If WPM options exercised on the final business day prior to the ex-dividend date]: +1.1%

= +$192.00/$18,209.34

Annualized Return-on-Investment (If option exercised early): +64.1%

= (+$192.00/$18,209.34) * (365/6 days); or

2. Absolute Return (If WPM shares assigned at $92.00 strike price at the August 22nd, 2025 options expiration): +1.2%

= +$225.00/$18,209.34

Annualized Return (If WPM stock assigned at $92.00 at the August 22nd, 2025 expiration): +64.4%

= (+$225.00/$18,209.34) * (365/7 days)

Either outcome would provide an excellent return-on-investment result.  These returns will be achieved as long as the stock is above the $92.00 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $90.875 ($93.59 stock purchase price - $2.55 Call options premium received - $.165 per share ex-dividend amount) provides 2.9% downside protection below today's stock purchase price.

Covered Calls Position Established in Cava Group Inc.

This morning, I established an initial small Covered Calls position in Cava Group Inc. (ticker CAVA) when my buy/write net debit limit order was executed at a price of $62.56.  Two hundred shares were purchased at $67.57 and 2 August 29th, 2025 $64.00 Call options were sold at $5.01 per share.  So, the maximum potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $1.44 per share [$5.01 Call options premium - ($67.57 stock purchase price - $64.00 strike price)].  The probability that the Call option will be above the $64.00 strike price on the August 29th options expiration date when this Covered Calls position was established was 69.8%.  As preferred, their next quarterly earnings report on November 11th is after the August 29th options expiration date.

Cava is the leading Mediterranean fast-casual restaurant brand.  With a current $8.2 billion market cap, it currently has about 400 locations in the U.S. and is growing rapidly with about 60 additional restaurants added each year.  The co-founder is also the CEO and the first store was opened in 2011. Cava's IPO occurred two years ago in 2023.  Thirty-eight percent of sales originate from their digital app and sixty-two percent is in-person at their restaurant locations.  The stock price has declined sharply since its earnings report two days ago, primarily based on the substantial decline in same-store-sales to +2.1%.  I listened to the earnings conference call presentation followed by the analysts' question/answer session.  I believe the 20.1% stock price decline from $84.54 prior to the earnings announcement to $67.57 this morning has been a significant overreaction; so I established this Covered Calls position.    

As detailed below, a potential return-on-investment result is +2.3% absolute return-on-investment (equivalent to +55.7% annualized return-on-investment for the next 15 days) if Cava's share price is in-the-money (i.e. above the $64.00 strike price) and the stock is therefore assigned on its August 29th, 2025 options expiration date. 

Cava Group Inc. (CAVA) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
8/14/2025 Bought 200 shares of Cava Group Inc. stock @ $67.57 per share.  
8/14/2025 Sold 2 CAVA August 29th, 2025 $64.00 Call options @ $5.01 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Call was 51.2 when this position was established.  

A possible overall performance result (including commissions) if this position is assigned on its 8/29/2025 options expiration date is as follows:
Cava Covered Calls Net Investment: $12,513.34
= ($67.57 - $5.01) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,000.66
= ($5.01 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Cava stock is above the $64.00 strike price at the August 29th, 2025 options expiration date): -$714.00
= ($64.00 strike price - $67.57 stock purchase price) * 200 shares

Total Net Profit Potential (If CAVA is in-the-money and therefore assigned at the $64.00 strike price on its 8/29/2025 options expiration date): +$286.66
= (+$1,000.66 options income + $0.00 dividend income - $714.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.3%
= +$286.66/$12,513.34
Potential Equivalent Annualized-Return-on-Investment: +55.7%
= (+$286.66/$12,513.34) * (365/15 days)  

Covered Calls Established in ConocoPhillips

This morning a short-term Covered Calls position was established in ConocoPhillips (ticker symbol COP) when two hundred COP shares were purchased at $95.06 and two August 22nd, 2025 weekly Call options were sold for $2.78 per share at the $93.00 strike price.  The net debit limit order at $92.28 was executed, so the potential time value profit was $.72 per share [$2.78 Call options premium - ($95.06 stock purchase price - $93.00 strike price)]. There is an upcoming quarterly ex-dividend of $.78 per share (annual dividend yield of 3.3%) next Monday on August 18th, so potential return-on-investment results for this position, as detailed below, include the possibility of early assignment because the ex-dividend is prior to the August 22nd, 2025 options expiration date.  As preferred by the Covered Calls Advisor, the next quarterly earnings report on October 30th, 2025 is after the options expiration date.  A moderately in-the-money Covered Calls position was established with the probability that the Calls will be in-the-money and therefore assigned on the options expiration date was 68.8%.

As detailed below, a potential return-on-investment result is +0.8% absolute return (equivalent to +57.0% annualized return-on-investment for the next 5 days) in the relatively unlikely event that the stock is assigned early this Friday (the last business day prior to next Monday's August 18th ex-date); OR +1.6% absolute return (equivalent to +65.9% annualized return over the next 9 days) if the stock is assigned on the August 22nd, 2025 options expiration date.


ConocoPhillips (COP) -- New Covered Calls Position

The transactions were:
8/13/2025 Bought 200 ConocoPhillips shares @ $95.06
8/13/2025 Sold 2 COP 8/22/2025 $93.00 Call options @ $2.78
Note: A simultaneous buy/write transaction was executed.   The Implied Volatility of the Call options was 27.0 when this Covered Calls position was established (which as preferred is well above the 14.5 of the S&P 500 Volatility Index--VIX).
8/18/2025 Upcoming quarterly ex-dividend of $.78 per share

Two possible overall performance results (including commissions) for this ConocoPhillips Covered Calls position are as follows:
Covered Calls Cost Basis: $18,457.34
= ($95.06 - $2.78) * 200 shares + $1.34 commissions

Net Profit Components:
(a) Options Income: +$556.00
= ($2.78 * 200 shares)
(b) Dividend Income (If option exercised early on the last business day prior to the August 18th ex-div date): +$0.00; or
(b) Dividend Income (If ConocoPhillips shares assigned at the August 22nd, 2025 expiration): +$156.00
= ($.78 dividend per share x 200 shares)
(c) Capital Appreciation (If COP assigned early on August 18th, 2025): -$412.00
+($93.00 strike price  - $95.06 stock purchase price) * 200 shares ;or
(c) Capital Appreciation (If COP assigned at $93.00 strike price at the August 22nd, 2025 options expiration): -$412.00
+($93.00 - $95.06) * 200 shares

1. Total Net Profit [If option exercised on August 15th (last business day prior to the August 18th ex-dividend date)]: +$144.00

= (+$556.00 options income + $0.00 dividend income - $412.00 capital appreciation); or

2. Total Net Profit (If ConocoPhillips shares assigned at $93.00 strike price at its August 22nd, 2025 expiration): +$300.00

= (+$556.00 + $156.00 dividend income - $412.00)

1. Absolute Return [If COP options exercised on the final business day prior to the ex-dividend date]: +0.8%

= +$144.00/$18,457.34

Annualized Return-on-Investment (If option exercised early): +57.0%

= (+$144.00/$18,457.34) * (365/5 days); or

2. Absolute Return (If ConocoPhillips shares assigned at $93.00 strike price at the August 22nd, 2025 options expiration): +1.6%

= +$300.00/$18,457.34

Annualized Return (If COP stock assigned at $95.00 at the May 26, 2023 expiration): +65.9%

= (+$300.00/$18,457.34) * (365/9 days)

Either outcome would provide an excellent return-on-investment result.  These returns will be achieved as long as the stock is above the $93.00 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $91.50 ($95.06 stock purchase price - $2.78 Call option premium received - $.78 per share ex-dividend amount) provides 3.7% downside protection below today's purchase price.

August 8th, 2025 Weekly Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with an August 8th, 2025 options expiration date.  Both positions (Cava Group Inc. and AppLovin Corporation) were in-the-money at yesterday's market close, so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  Each of these positions was established at moderately in-the-money strike prices.   

A summary of the results for these positions are as follows:

1. Cava Group Inc. (CAVA) -- +2.8% absolute return (equivalent to +60.3% annualized return-on-investment) for the 17 days of this investment.  This Covered Call position was assigned at the $84.00 strike price yesterday on its 8/8/2025 options expiration date since the stock closed in-the-money at $85.05 per share.  The original post detailing this Covered Calls position is here. 

2. AppLovin Corporation (APP) -- +7.3% absolute return (equivalent to +148.9% annualized return-on-investment) for the 18 days of this investment.  This Covered Call position was assigned at the $345.00 strike price yesterday on its 8/8/2025 options expiration date since the stock closed in-the-money at $455.98 per share. The original post detailing this Covered Calls position is here. 

As always, I welcome your feedback at my email address shown below with your comments and questions on any topics related to the Covered Calls investing strategy.

Best Wishes,

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Call Position Established in RTX Corporation

Today a Covered Call position was established in RTX Corporation (ticker symbol RTX). In early 2020, Raytheon merged with United Technologies (after they spun-out their Carrier and Otis Elevators divisions) making the new Raytheon a very strong company with approximately equal parts defense and commercial business revenues.  Two years ago, they changed their corporate name to RTX Corporation. 

My buy/write limit order was executed when 100 shares were purchased at $156.04 and 1 August 22nd, 2025 weekly Call option was sold at $4.72 per share at the $152.50 strike price.  The time value (aka extrinsic value) in the Call option was $1.18 per share [$4.72 Call option premium - ($156.04 stock price - $152.50 strike price)] when this transaction executed.  There is also an upcoming ex-dividend of $.68 per share (7.9% above last year's dividend rate for the same quarter) on August 15th, 2025.  Two potential return-on-investment results for this position are detailed below and include the possibility of early exercise since the ex-dividend is prior to the August 22nd, 2025 options expiration date.  Given my current Overall Market Meter outlook of Neutral, a conservative in-the-money Covered Call position was established, the probability that the Call will remain in-the-money on the options expiration date was 72.2%.  Important to the Covered Calls Advisor, RTX reported their Q2 2025 earnings report two weeks ago, so there is no intervening earnings report prior to the August 22nd options expiration date.  

As detailed below, two potential return-on-investment results are: 

•  +0.8% absolute return (equivalent to +28.2% annualized return-on-investment for the next 10 days) if the stock is assigned early (on the last business day prior to the August 15th ex-dividend date); OR 

• +1.2% absolute return (equivalent to +26.2% annualized return-on-investment over the next 17 days) if the stock is assigned on the August 22nd options expiration date.

RTX Corporation (RTX) -- New Covered Call Position

The buy/write transaction was:
8/5/2025 Bought 200 RTX shares @ $72.40
02/17/2021 Sold 1 RTX 8/22/2025 $152.50 Call option @ $4.72 per share
8/15/2025 Upcoming quarterly ex-dividend of $.68 per share

Two possible overall performance results (including commissions) for this RTX Corp. Covered Call position are as follows:
RTX Covered Call Cost Basis: $15,132.67
= ($156.04 - $4.72) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$472.00
= ($4.72 * 100 shares)
(b) Dividend Income (If option exercised early on August 14th, 2025, the business day prior to the August 15th ex-div date): +$0.00; or
(b) Dividend Income (If RTX stock assigned at August 22nd, 2025 options expiration): +$68.00
= ($.68 dividend per share x 100 shares)
(c) Capital Appreciation (If RTX Call option assigned early on August 14th): -$354.00
+($152.50 strike price - $156.04 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $152.50 strike price at options expiration): -$354.00
+($152.50 - $156.04) * 100 shares

1. Total Net Profit [If option exercised on Aug. 14th (business day prior to Aug. 15th ex-dividend date)]: +$118.00

= (+$472.00 options income + $0.00 dividend income - $354.00 capital appreciation); or

2. Total Net Profit (If RTX shares assigned at $152.50 strike price at the August 22nd, 2025 options expiration date): +$186.00

= (+$472.00 + $68.00 - $354.00)

1. Absolute Return (If option exercised early): +0.8%

= +$118.00/$15,132.67

Annualized Return-on-Investment (If option exercised early): +28.5%

= (+$118.00/$15,132.67) * (365/10 days); or

2. Absolute Return (If RTX shares assigned at the $152.50 strike price at the Aug. 22nd, 2025 options expiration date): +1.2%

= +$186.00/$15,132.67

Annualized Return-on-Investment (If RTX shares assigned at the $152.50 at the August 22nd, 2025 options expiration date): +26.4%

= (+$186.00/$15,132.67) x (365/17 days)

These return-on-investment results will be achieved as long as the stock is above the $152.50 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $150.64 ($156.04 - $4.72 - $.68) provides 3.5% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this RTX Corporation position, eight of the nine criteria were met.

August 1st, 2025 Weekly Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with an August 1st, 2025 options expiration date.  All three positions (Amazon.com Inc., Dell Technologies Inc., and Lowe's Companies Inc.) were in-the-money at yesterday's market close, so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  Each of these positions was established at moderately in-the-money strike prices.   

A summary of the results for each of these three positions are as follows:

1. Amazon.com Inc. (AMZN) -- +1.5% absolute return (equivalent to +37.4% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $212.50 strike price yesterday on its 8/1/2025 options expiration date since the stock closed in-the-money at $214.75 per share.  The original post detailing this Covered Calls position is here. 

2. Dell Technologies Inc. (DELL) -- +1.8% absolute return (equivalent to +32.0% annualized return-on-investment) for the 21 days of this investment.  This Covered Call position was assigned at the $120.00 strike price yesterday on its 8/1/2025 options expiration date since the stock closed in-the-money at $127.32 per share. The original post detailing this Covered Calls position is here. 

3. Lowe's Companies Inc. (LOW) -- +1.6% absolute return (equivalent to +32.3% annualized return-on-investment) for the 21 days of this investment.  This Covered Calls position was assigned at the $215.00 strike price on its August 1st options expiration date since it closed in-the-money yesterday at $226.40 per share.  The original post detailing this Covered Calls position is here. 

I welcome your feedback at my email address shown below with your comments and questions on any topics related to the Covered Calls investing strategy.

Best Wishes,

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Rolled Out the Covered Calls Position in Nvidia Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in Nvidia Corporation (ticker NVDA) with an expiration date today.  This afternoon when the stock price was deep in-the-money at $172.22 and since the strike price was $162.50, I decided to continue this Nvidia Covered Calls position by rolling the Calls out two more weeks (to the August 15th, 2025 options expiration date) and at the same $162.50 strike price.  For this calendar spread transaction, I received a net credit of $2.42 per share against the 300 Nvidia shares currently owned. 

As detailed below, a potential outcome for this Nvidia investment if the stock is in-the-money and therefore assigned on the August 15th options expiration date is +3.5% absolute return-on-investment over 31 days (equivalent to +41.3% annualized-return-on-investment) if the stock closes above the $162.50 strike price on the 8/15/2025 options expiration date.   This position demonstrates that by selling in-the-money strike prices, the Calls premium income received can overcome as much as a -4.1% stock price decline from its original stock purchase price and still achieve a very positive return-on-investment outcome.  The details showing this potential return-on-investment result are as follows:

Nvidia Corporation (NVDA) -- Continuation of Covered Calls Position

The buy/write net limit order transaction was as follows:

Today's buy/write net limit order transaction was as follows:
7/15/2025 Bought 300 Nvidia Corporation shares at $169.42.

7/15/2025 Sold 3 NVDA 8/1/2025 $162.50 Call options @ $10.10 per share.  The Implied Volatility of these Calls was 40.3% when this position was established.  

8/1/2025 Continued this Nvidia Covered Calls position by rolling out to the 8/15/2025 options expiration date at the identical $162.50 strike price at a net credit of $2.42 per share.  The calendar spread was -- bought-to-close the three 8/1/1025 $162.50 Calls at $9.68 per share and simultaneously sold-to-open three 8/15/2025 $162.50 Calls at $12.10 per share.  

A possible overall performance result (including commissions) for this Nvidia Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $47,798.01
= ($169.42 - $10.10) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$3,751.98
= ($10.10 - $9.68 + $12.10) * 300 shares - $4.02 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Nvidia shares assigned at the $162.50 strike price at the 8/15/2025 options expiration date): -$2,076.00
+($162.50 strike price - $169.42 stock purchase price) * 300 shares

Total Net Profit Potential (If 300 Nvidia shares in-the-money and therefore assigned at the $162.50 strike price at the 8/15/2025 options expiration date): +$1,675.98
= (+$3,751.98 options income + $0.00 dividend income - $2,076.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.5%
= +$1,675.98/$47,798.01
Potential Annualized Return-on-Investment: +41.3%
= (+$1,675.98/$47,798.01) * (365/31 days)

Established Covered Calls Position in Wells Fargo & Company

Early in this morning's trading session, a short-term Covered Calls position was established in Wells Fargo & Company (ticker symbol WFC) when the Covered Calls Advisor's buy/write limit order was executed -- 500 shares were purchased at $78.08 and 5 August 15th, 2025 monthly Call options were sold at $2.72 at the $76.00 strike price.  The corresponding extrinsic value (i.e. time value) was $.64 per share [$2.72 Call options premium - ($78.08 stock purchase price - $76.00 strike price)], all of which will be profit if the stock is assigned (either by early assignment on the day prior to the August 8th ex-dividend date or at the August 15th options expiration date). The Implied Volatility of the Call options was 24.2 which, as desired by the Covered Calls Advisor, is above the current 20.5 of the S&P 500 Volatility Index (i.e. VIX).  Also as preferred, the next earnings report on October 14th, 2025 is well after the options expiration date.

At today's purchase price, the upcoming ex-dividend of $.45 has a 2.2% annualized dividend yield.  So, this short-term (only 11 days until options expiration) position is established to take advantage of the potential to achieve a satisfactory annualized return-on-investment in a position that meets all nine criteria of the Covered Calls Advisor's Dividend Capture Strategy (see table at end of this post).  This $.45 dividend is a 12.5% increase from the $.40 dividend rate during the same quarter last year.    

Wells Fargo has a current Average Score of 9 and an Optimized Score of 8 (on a scale of 1 to 10) by LSEG's fundamentals-based models and Market Edges's technical indicators rate it a Strong Buy.  The average 12-month target price of the 21 analysts covering Wells Fargo is $87.00 (+11.4% above today's purchase price).

Most companies in the Financial Sector (such as Wells Fargo) provide only modest growth prospects, but they often provide good annual dividend yields.  Consequently, the Covered Calls Advisor targets opportunities to use the Dividend Capture Strategy in all Financial Sector Covered Calls positions.  This new Wells Fargo Covered Calls position continues the Covered Calls Advisor's Dividend Capture Strategy of often selling in-the-money monthly Covered Calls for one of six mega-cap U.S. banks (Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo) for each options expiration month: (JPMorgan Chase quarterly for Jan, Apr, July, and Oct options expirations; Citigroup, Morgan Stanley, and/or Wells Fargo for Feb, May, Aug, and Nov options expirations; and Bank of America and/or Goldman Sachs for Mar, Jun, Sep, and Dec options expirations).

The goal of these monthly Covered Calls in these banks is to both provide an opportunity to either: (1) potentially capture the quarterly dividend payment and if the stock price remains above the strike price at options expiration, in which case the maximum possible return-on-investment result on the options expiration date for the position would be achieved; or (2) have the stock assigned early on the day prior to the ex-dividend date in which case the Covered Calls Advisor is usually very pleased since the Dividend Capture Strategy criteria are designed such that the annualized return-on-investment for early assignment normally exceeds the Covered Calls Advisor's minimum threshold (as is the case with this Wells Fargo position).  So far, applying this approach has provided attractive annualized return results -- better than would be achieved if Covered Calls positions for these bank stocks were held in the Covered Calls Advisor Portfolio during the other two non-dividend paying months each quarter.  

Two potential return-on-investment results for this position are highlighted below (including the possibility of early assignment since the ex-dividend is prior to the August 15th options expiration date).  Given the Covered Calls Advisor's current Neutral overall market sentiment, a slightly in-the-money Covered Calls position was established with a probability of 71.7% that the stock will be in-the-money, and therefore assigned (i.e. sold), on the August 15th, 2025 options expiration date.  

As detailed below, two potential return-on-investment results are: 

•  +0.8% absolute return (equivalent to +43.8% annualized return-on-investment for the next 7 days) in the albeit relatively unlikely event that the stock is assigned early (business day prior to next Friday's 8/8/2025 ex-dividend date); OR 

• +1.4% absolute return (equivalent to +37.5% annualized return-on-investment over the next 14 days) if the stock is assigned on the August 15th options expiration date.

Wells Fargo & Company (WFC) -- New Covered Calls Position
The buy/write transaction was:

8/1/2025 Bought 500 Wells Fargo shares @ $78.08
8/1/2025 Sold 5 Wells Fargo 8/15/2025 $76.00 Call options @ $2.72
8/8/2025 Upcoming quarterly ex-dividend of $.45 per share

Two possible overall performance results (including commissions) for this Wells Fargo Covered Calls position are as follows:
Covered Calls Net Investment: $37,683.35
= ($78.08 - $2.72) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,356.65
= ($2.72 * 500 shares) - $3.35 commission
(b) Dividend Income (If option exercised early on August 7th, the day prior to the August 8th ex-div date): +$0.00; or
(b) Dividend Income (If Wells Fargo stock assigned at the August 15th, 2025 options expiration; so the $.45 dividend is captured): +$225.00
= ($.45 dividend per share x 500 shares)

(c) Capital Appreciation (If Wells Fargo Call options assigned early on August 7th, 2025): -$1,040.00
+($76.00 strike price - $78.08 stock purchase price) * 500 shares; or
(c) Capital Appreciation (If shares assigned at $76.00 strike price at options expiration): -$1,040.00
+($76.00 - $78.08) * 500 shares

1. Total Net Profit [If option exercised on 8/7/2025 (business day prior to the 8/8/2025 ex-dividend date)]: +$316.65

= (+$1,356.65 options income + $0.00 dividend income - $1,040.00 capital appreciation); or

2. Total Net Profit (If Wells Fargo shares assigned at $76.00 at the 8/15/2025 expiration): +$541.65

= (+$1,356.65 options income + $225.00 dividend income - $1,040.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised early on 8/7/2025]: +0.8%

= +$316.65/$37,683.35

Annualized Return-on-Investment (If option exercised early): +43.8%

= (+$316.65/$37,683.35) * (365/7 days); or

2. Absolute Return-on-Investment (If Wells Fargo shares assigned at $76.00 at the 8/15/2025 options expiration): +1.4%

= +$541.65/$37,683.35

Annualized Return-on-Investment (If Wells Fargo shares assigned at $76.00 at the 8/15/2025 options expiration date): +37.5%

= (+$541.65/$37,683.35) * (365/14 days)

Either outcome provides a good return-on-investment result for this Wells Fargo investment.  These returns will be achieved as long as the stock is above the $76.00 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $74.91 ($78.08 - $2.72 - $.45) provides a 4.1% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this Wells Fargo position, all nine criteria are met.

July 31st, 2025 Option Expiration Results

The Covered Calls Advisor Portfolio had one Covered Call position in iShares Bitcoin ETF (IBIT) at the July 31st, 2025 end-of-month options expiration date and at the $65.00 strike price.  The position closed in-the-money yesterday at $66.32 per share, so the Call options expired and the 400 IBIT shares were sold at their $65.00 strike price.  A summary of the results is:

IBIT -- +1.6% absolute return-on-investment (equivalent to +44.5% annualized return-on-investment) for the 13 days of this Covered Calls investment.  The original blog post when this position was established is here. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net