There is also an upcoming quarterly ex-dividend of
$.25 per share on November 26th (at a current annual dividend yield of 1.1%), so two 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 Nov. 28th, 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 11/28/2025 options expiration date was 69.2%. Also, there is no quarterly earnings report prior to the options expiration date. CFRA has a Strong Buy rating and LSEG has a Buy rating with both their Average Score and Optimized Score of 9 (on a scale of 1 to 10).
As detailed below, two potential return-on-investment results are:
- +1.4% absolute return (equivalent to +63.9% annualized return-on-investment for the next 8 days) if the stock is assigned early (on the last business day prior to the November 26th, 2025 ex-dividend date); OR
- +1.7%
absolute return (equivalent to +61.9% annualized return-on-investment over the next 10 days) if the stock is assigned on the November 28th, 2025 options expiration date.
Newmont Corporation (NEM) -- New Covered Calls Position
The buy/write transaction was:
11/18/2025 Bought 300 Newmont Corp shares @ $86.53.
11/18/2025 Sold 3 Newmont 11/28/2025 $83.00 Call options @ $4.73.
Note: the Implied Volatility of the Call options was 46.8 when this buy/write transaction was executed.
11/26/2025 Upcoming quarterly ex-dividend of $.25 per share.
Two possible overall performance results (including commissions) for this Newmont Corporation Covered Calls position are as follows:
Covered Calls Cost Basis: $25,542.01
= ($86.53 - $4.73) * 300 shares + $2.01 commission
Net Profit Components:
(a) Options Income: +$1,416.99
= ($4.73 * 300 shares) - $2.01 commission
(b) Dividend Income (If option exercised early on Nov. 25th, the last business day prior to the November 26th ex-dividend date): +$0.00; or
(b) Dividend Income (If Newmont stock assigned at the Nov. 28th, 2025 options expiration date): +$75.00 = $.25 dividend per share x 300 shares
(c) Capital Appreciation (If Newmont Call options assigned early on Nov. 26th): -$1,059.00
+($83.00 strike price - $86.53 stock purchase price) * 300 shares; or
(c) Capital Appreciation (If shares assigned at the $83.00 strike price at the 11/28/2025 options expiration): -$1,059.00
+($83.00 - $86.53) * 300 shares
(c) Capital Appreciation (If shares assigned at the $83.00 strike price at the 11/28/2025 options expiration): -$1,059.00
+($83.00 - $86.53) * 300 shares
1. Total Net Profit [If option exercised early on the last business day prior to the Nov. 26th ex-dividend date)]: +$357.99
= (+$1,416.99 options income + $0.00 dividend income - $1,059.00 capital appreciation); or
2. Total Net Profit (If Newmont Corp. shares assigned at $83.00 strike price at the Nov. 28th, 2025 expiration): +$432.99
= (+$1,416.99 + $75.00 - $1,059.00)
1. Potential Absolute Return-on-Investment (If option exercised early on 11/26/2025): +1.4%
= +$357.99/$25,542.01
Potential Annualized Return-on-Investment: +63.9%
= (+$357.99/$25,542.01) * (365/8 days); or
2. Potential Absolute Return-on-Investment (If Newmont shares assigned at $83.00 at the November 28th, 2025 options expiration): +1.7%
= +$432.99/$25,542.01
Potential Annualized Return-on-Investment (If Newmont shares assigned at the Nov. 28th, 2025 options expiration date): +61.9%
= (+$432.99/$25,542.01) * (365/10 days)
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 Newmont Corporation position, all nine criteria were met.
