Covered Calls Established in Leidos Holdings Inc.

Early in this mornings's trading session, a short-term Covered Calls position was established in Leidos Holdings Inc. (ticker LDOS) with the purchase of 200 shares at $185.67 per share and two December 19th, 2025 Call options were sold for $6.75 per share at the $180.00 strike price.  The buy/write net debit limit order at $178.92 was executed, so the time value was $1.08 per share [$6.75 Call options premium - ($185.67 stock purchase price - $180.00 strike price)]. As I prefer, Leidos' next quarterly earnings report is not until February 17th, 2026 which is long after next week's December 19th, 2025 options expiration date.  A moderately in-the-money Covered Calls positions was established with the probability that the Calls will expire in-the-money on the 12/19/2025 options expiration date was 77.9%.  

In addition to the $1.08 potential time value decay profit at assignment for this position, Leidos Holdings Inc. also goes ex-dividend on December 15th at $.43 per share (0.9% dividend yield) which is prior to the December 19th options expiration date -- so this dividend is included in the potential return-on-investment results detailed below. 

Leidos is a $23.7 billion market cap company in the IT Services industry.  They are a technology, engineering, and science company that provides solutions in the defense, intelligence, civil, and health markets, both domestically and internationally.  They have a 9 Average Rating and a 10 Optimized Rating (on a scale of 1 to 10) by LSEG Stock Reports Plus.  The 13 analysts that cover Leidos have a current average target price of $216.00 (+16.3% above today's stock purchase price).  It appeared today in my StockRover Overall stock screener by passing every criteria I specified (see chart below): 

As detailed below, two potential return-on-investment results are: (1) +0.6% absolute return (equivalent to +36.5% annualized return-on-investment over the next 6 days) if the stock is assigned on December 12th (the last trading day prior to the December 15th, 2025 ex-dividend date; or (2) +0.8% absolute return (equivalent to +30.7% annualized return-on-investment over the next 10 days) if the stock is assigned on the December 19th, 2025 options expiration date.

Leidos Holdings Inc. (LDOS) -- New Covered Calls Position 

The Buy/Write transaction was as follows:
12/9/2025 Bought 200 shares of Leidos Holdings Inc. shares @ $185.67 per share.  
12/9/2025 Sold 2 Leidos December 19th, 2025 $180.00 Call options @ $6.75 per share.  The Implied Volatility of these Call options was 24.6 today when this transaction was executed. 

Two possible overall performance results (including commissions) for this Leidos Covered Calls position are as follows:

Covered Calls Net Investment: $35,785.34
= ($185.67 - $6.75) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,348.66
= ($6.75 * 200 shares) - $1.34 commission
(b) Dividend Income (If assigned early on 12/12/2025 which is the last trading day prior to the 12/15/2025 ex-dividend date): +$0.00
(b) Dividend Income (If assigned on the 12/19/2025 options expiration date): +$86.00
= $.43 x 200 shares

(c) Capital Appreciation (If 200 Leidos shares assigned early on the 12/15/2025 ex-dividend date): -$1,134.00
+($180.00 strike price - $185.67 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If 200 Leidos shares assigned at the $180.00 strike price on the options expiration date): -$1,134.00
+($180.00 strike price - $185.67 stock purchase price) * 200 shares

(1) Total Net Profit Potential (If 200 LDOS shares assigned early at the $180.00 strike price at the 12/15/2025 ex-dividend date): +$214.66
= (+$1,348.66 options income + $0.00 dividend income - $1,134.00 capital appreciation); or
(2) Total Net Profit Potential (If 200 Leidos shares assigned at the $180.00 strike price at the options expiration date): +$300.66 = (+$1,348.66 options income + $86.00 dividend income - $1,134.00 capital appreciation)

(1) Potential Absolute Return-on-Investment (if Leidos shares assigned early on the trading day prior to the 12/15/2025 ex-dividend date): +0.6%
= +$214.66/$35,785.34
Potential Annualized Return-on-Investment (if 200 LDOS shares assigned early on the 12/15/2025 ex-dividend date): +36.5%
= (+$214.66/$35,785.34) * (365/6 days)

(2) Potential Absolute Return-on-Investment (if LDOS shares assigned on the 12/19/2025 options expiration date): +0.8%
= +$300.66/$35,785.34
Potential Annualized Return-on-Investment (if Leidos shares assigned on the 12/19/2025 options expiration date): +30.7%
= (+$300.66/$35,785.34) * (365/10 days)