Continuation of Covered Calls Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in NVIDIA Corporation (ticker NVDA) with 200 shares which expired last Friday with the stock at $180.99 which was below the $185.00 strike price.  Today this position was continued by rolling down-and-out eleven days to the January 2nd, 2026 options expiration date at an in-the-money $182.50 strike price by selling-to-open two NVDA Calls at $4.35 per share when NVIDIA's stock price was $183.29.  

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the January 2nd, 2026 options expiration date is +11.2% absolute return-on-investment over 43 days (equivalent to +95.0% annualized-return-on-investment) if the stock closes above the $182.50 strike price on the 1/2/2026 options expiration date.  The details showing this potential return-on-investment result are as follows:

NVIDIA Corporation (NVDA) -- New Covered Call Position

The original buy/write net limit order transaction was as follows:
11/21/2025 Bought 200 NVIDIA Corporation shares at $177.70.

11/21/2025 Sold 2 NVIDIA 12/5/2025 $185.00 Call options @ $4.50 per share.  The Implied Volatility of these Calls was 52.0 when this position was established.  
12/4/2025 Ex-dividend of $.01 per share.

12/5/2025 Two hundred NVIDIA shares 

12/8/2025 Continued this NVIDIA Corporation Covered Calls position by selling 2 December 19th, 2025 $185.00 Call options at $5.75 per share when the stock was trading at $185.38 per share.  

12/19/2025 Three hundred NVIDIA shares closed below the $185.00 strike price at $180.99, so the two Call options expired and the 200 NVIDIA shares remained in the Covered Calls Advisor Portfolio.

12/22/2025 Continued this Covered Calls position by selling-to-open 2 January 2nd, 2026 $182.50 Call options at $4.35 per share when the NVDA stock was trading at $183.29 per share.

 

The overall performance results (including commissions) for this NVIDIA Corporation Covered Calls position if it closes above the $182.50 strike price at the January 2nd, 2026 options expiration is as follows:
Covered Calls Net Investment: $34,641.34
= ($177.70 - $4.50) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,915.98
= ($4.50 + $5.75 + $4.35) * 200 shares - $4.02 commissions
(b) Dividend Income: +$2.00 = $.01 x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $182.50 strike price) on the 1/2/2026 options expiration date): +$960.00
+($182.50 strike price - $177.70 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $182.50 strike price on the 1/2/2026 options expiration date): +$3,877.98

= (+$2,915.98 options income + $2.00 dividend income + $960.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned at the $182.50 strike price on the 1/2/2026 options expiration date): +11.2%
= (+$3,877.98/$34,641.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $182.50 strike price on the 1/2/2026 options expiration date): +95.0%
= (+$3,877.98/$34,641.34) * (365/43 days)