Established Covered Call in NVIDIA Corporation

Today I established a Covered Calls position of 14 days duration in NVIDIA Corporation (ticker NVDA).  NVIDIA is my top investment in the megacap technology space and I am continuing my recent trend of establishing positions every week in this company.  I have NVIDIA Covered Calls with expiration dates today, next Friday, and now again two weeks from today on January 2nd, 2026.  

My net buy/write limit order at $174.70 was executed by simultaneously purchasing one hundred shares at $178.50 and selling one January 2nd, 2026 weekly Call option at $3.80 per share and at the $180.00 strike price. A slightly out-of-the-money (strike price above the stock purchase price) Covered Call position was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $180.00 strike price) on the 1/2/2026 options expiration date was 44.8% when this transaction was executed. 

As detailed below, two potential return-on-investment results are: (1) +2.2% absolute return-on-investment (equivalent to +56.6% annualized return-on-investment for the next 14 days) if NVIDIA's share price is unchanged at the $178.50 stock purchase price on the January 2nd, 2026 options expiration date; and  (2) +3.0% absolute return-on-investment (equivalent to +79.0% annualized return-on-investment for the next 14 days) if NVIDIA's share price is in-the-money (i.e. above the $180.00 strike price) and therefore assigned on its January 2nd, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
12/19/2025 Bought 100 NVIDIA Corporation shares at $178.50.

12/19/2025 Sold 1 NVIDIA 1/2/2026 $180.00 Call option @ $3.80 per share.  The Implied Volatility of these Calls was 31.0 when this position was established.  

Two possible overall performance results (including commissions) for this NVIDIA Corporation Covered Calls position are as follows:
Covered Calls Net Investment: $17,470.67
= ($178.50 - $3.80) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$379.33
= ($3.80 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares close at the unchanged purchase price of $178.50 per share on the 1/2/2026 options expiration date): +$0.00
+($178.5 closing price at expiration - $178.50 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $180.00 strike price) on the 1/2/2026 options expiration date): +$150.00
+($180.00 strike price - $178.50 stock purchase price) * 100 shares

1. Total Net Profit Potential (stock closes at the unchanged purchase price of $178.50 per share on the 1/2/2026 options expiration date): +$379.33
= (+$379.33 option income + $0.00 dividend income + $0.00 capital appreciation)
2. Total Net Profit Potential (If 100 NVIDIA shares assigned at the $180.00 strike price on the 1/2/2026 options expiration date): +$529.33 ($180.00 strike price - $178.50 purchase price) x 100 shares + $379.33 Call option premium = $150.00 + $379.33

1. Potential Absolute Return-on-Investment (If 100 NVIDIA shares close at the unchanged purchase price of $178.50 per share on the 1/2/2026 options expiration date): +2.2%

= +$379.33/$17,470.67
Potential Annualized Return-on-Investment (If 100 NVIDIA shares close at the unchanged purchase price of $178.50 per share on the 1/2/2026 options expiration date): +56.6%

= (+$379.33/$17,470.67) * (365/14 days)

2. Potential Absolute Return-on-Investment (If 100 NVIDIA shares assigned at the $180.00 strike price on the 1/2/2026 options expiration date): +3.0%
= (+$529.33/$17,470.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $180.00 strike price on the 1/2/2026 options expiration date): +79.0%
= (+$529.33/$17,470.67) * (365/14 days)