Established Covered Calls in Pinterest Inc.

Today I established a Covered Calls position in Pinterest Inc. (ticker PINS).  My net buy/write limit order at $24.58 was executed by simultaneously purchasing one thousand shares at $25.91 and selling ten January 16th, 2026 Call options at $1.33 per share and at the $25.00 strike price. An in-the-money Covered Calls position was established with the probability that Pinterest's stock will close in-the-money (i.e. above the $25.00 strike price) on the 1/16/2026 options expiration date was 67.4% when this transaction was executed.  Also, the next earnings report on February 5th, 2026 is after the January 16th, 2026 options expiration date.  Wall Street analysts that cover Pinterest have an average target price of $36.90 which is +42.4% above today's stock purchase price.

As detailed below, a potential return-on-investment result if the stock closes above the $25.00 strike price on the 1/16/2026 expiration date is +1.7% absolute return-on-investment (equivalent to +36.1% annualized return-on-investment for the next 17 days). 

Pinterest Inc. (PINS) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
12/30/2025 Bought 1,000 Pinterest shares at $25.91.

12/30/2025 Sold 10 Pinterest 1/16/2026 $25.00 Call options @ $1.33 per share.  The Implied Volatility of these Calls was 34.8 when this position was established.  

A possible overall performance result (including commissions) for this Pinterest Covered Calls position is as follows:
Covered Calls Net Investment: $24,586.70
= ($25.91 - $1.33) * 1,000 shares + $6.70 commission

Net Profit:
(a) Options Income: +$1,323.30
= ($1.33 * 1,000 shares) - $6.70 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 1,000 Pinterest shares assigned (i.e. above the $25.00 strike price) on the 1/16/2026 options expiration date): -$910.00
+($25.00 strike price - $25.91 stock purchase price) * 1,000 shares

Total Net Profit Potential (If 1,000 Pinterest shares assigned at the $25.00 strike price on the 1/16/2026 options expiration date): +$413.30

= ($1,323.30 options income + $0.00 dividend income - $910.00 capital appreciation)

Potential Absolute Return-on-Investment (If 1,000 Pinterest shares assigned at the $25.00 strike price on the 1/16/2026 options expiration date): +1.7%
= (+$413.30/$24,586.70)

Potential Annualized Return-on-Investment (If 1,000 Pinterest shares assigned at the $25.00 strike price on the 1/16/2026 options expiration date): +36.1%
= (+$413.30/$24,586.70) * (365/17 days)