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)