Covered Calls Position Established in Uber Technologies Inc.

This afternoon my short-term (i.e. 8 days) buy/write net debit limit order was executed and 200 shares of Uber Technologies Inc.(ticker symbol UBER) stock were purchased at $82.66 and 2 January 30th, 2026 $81.00 Call options were sold at $2.72 per share -- a net debit of $79.94 per share.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $1.06 per share [$2.72 Call options premium - ($82.66 stock purchase price - $81.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 64.8% when this order was transacted. As preferred, the next quarterly earnings report on February 4th, 2026 is after the January 30th options expiration date. 

As detailed below, a potential outcome for this Uber Technologies investment is +1.3% absolute return-on-investment for the next 8 days (equivalent to +60.1% annualized-return-on-investment) if the stock closes above the $81.00 strike price on the January 30th, 2026 options expiration date.

Uber Technologies Inc. (UBER) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
1/22/2026 Bought 200 shares of Uber Technologies Inc. stock @ $82.66 per share.  
1/22/2026 Sold 2 Uber January 30th, 2026 $81.00 Call options @ $2.72 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 36.9 when this position was established which, as preferred, is well above the current VIX of 15.5.  

A possible overall performance result (including commissions) if this position is assigned on its 1/30/2026 options expiration date is as follows:
Covered Calls Net Investment: $15,989.34
= ($82.66 - $2.72) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$542.66
= ($2.72 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $81.00 strike price at the 1/30/2026 options expiration date): -$332.00
= ($81.00 - $82.66) * 200 shares

Potential Total Net Profit (If assigned at expiration): +$210.66
= (+$542.66 options income + $0.00 dividend income - $332.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.3%
= +$210.66/$15,989.34
Potential Equivalent Annualized-Return-on-Investment: +60.1%
= (+$210.66/$15,989.34) * (365/8 days)

Covered Call Position Established in Amazon.com Inc.

Today my buy/write net debit limit order was executed at a price of $221.79 when 100 shares of Amazon.com Inc. (ticker symbol AMZN) stock was purchased at $230.91 and 1 January 30th, 2026 $225.00 Call option was sold at $9.12 per share.  The potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $3.21 per share [$9.12 Call option premium - ($230.91 stock purchase price - $225.00 strike price)].  The probability that this Amazon Call option will be above the $225.00 strike price on the 1/30/2026 options expiration date when this Covered Call position was established was 65.9%.

This position replaces the Amazon.com Inc. Covered Call that was assigned on last Friday's options expiration, so this position is a continuation by my establishing another in-the-money Covered Call position in Amazon.  As I prefer, the next earnings report on February 5th, 2026 is after the January 30th, 2026 options expiration date. 

The average target price of the analysts covering Amazon.com stock is $294.40 (+27.5% above today's stock purchase price).  Also, LSEG Stock Reports Plus has a Buy rating with an Average Score of 7 and an Optimized Score of 9 (on a scale of 1 to 10). Amazon.com also passed all criteria in my customized "Current and Future Earnings Growers" stock screener as detailed in the chart below:

Amazon.com Inc. (AMZN) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
1/20/2026 Bought 100 shares of Amazon.com stock @ $230.91 per share.  
1/20/2026 Sold 1 AMZN January 30th, 2026 $225.00 Call option @ $9.12 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Call was 36.6 when this position was established which, as preferred, is well above the current VIX of 20.9.  

A possible overall performance result (including commissions) if this position is assigned on its 1/30/2026 options expiration date is as follows:
Covered Call Net Investment: $22,179.67
= ($230.91 - $9.12) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$911.33
= ($9.12 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Amazon.com stock is above the $225.00 strike price at the January 30th, 2026 options expiration date): -$591.00
= ($225.00 strike price - $230.91 stock purchase price) * 100 shares

Total Net Profit Potential (If assigned at the $225.00 strike price on the Jan. 30th, 2026 options expiration date): +$320.33
= (+$911.33 options income + $0.00 dividend income - $591.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.4%
= +$320.33/$22,179.67
Potential Equivalent Annualized-Return-on-Investment: +52.7%
= (+$320.33/$22,179.67) * (365/10 days)

Established Covered Call in NVIDIA Corporation

A new Covered Call position was established early in this morning's trading session in NVIDIA Corporation (ticker NVDA). My net debit buy/write limit order at $173.03 was executed by simultaneously purchasing one hundred shares at $179.86 and selling one February 6th, 2026 Call option at the $180.00 strike price at $6.83 per share, which provides a $6.97 per share = [$6.83 Call option premium received - ($179.86 stock purchase price - $180.00 option strike price)] time value profit potential.    

This position replaces the NVIDIA Covered Call that was assigned on last Friday's options expiration, so this now becomes the third NVIDIA Covered Call position in my Covered Calls Advisor Portfolio and continues my recent practice of having a NVIDIA Covered Call position expiring each week.  A moderately in-the-money Covered Call position was established for this new position with the probability that NVIDIA's stock will close in-the-money on the 2/6/2026 options expiration date was 48.4% when this transaction was executed.  As I prefer, the next earnings report on February 25th, 2026 is after the February 6th, 2026 options expiration date. 

The average target price of the analysts covering NVIDIA stock is $255.79 (+42.2% above today's stock purchase price).  Also, LSEG Stock Reports Plus has a Buy rating with an Average Score of 7 and an Optimized Score of 9 (on a scale of 1 to 10).  It is also Buy rated by Morningstar, Schwab, and Argus and is Strong Buy rated by CFRA.  NVIDIA also passed all criteria in my customized "Quality + Growth" stock screener as detailed in the chart below:

As detailed below, a potential return-on-investment result is +4.0% absolute return-on-investment (equivalent to +86.4% annualized return-on-investment for the next 17 days) if NVIDIA's share price is in-the-money (i.e. above the $180.00 strike price) and therefore assigned on its February 6th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
1/20/2026 Bought 100 NVIDIA Corporation shares at $179.86.

1/20/2026 Sold 1 NVIDIA 2/6/2026 $180.00 Call option @ $6.83 per share. The Implied Volatility of this Call option was 43.1 when this position was established. 

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $17,303.67
= ($179.86 - $6.83) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$682.33
= ($6.83 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $180.00 strike price at expiration): +$14.00
+($180.00 strike price - $179.86 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $180.00 strike price on the 2/6/2026 options expiration date): +$696.33
= (+$682.33 option income + $0.00 dividend income + $14.00 capital appreciation)

Potential Absolute Return-on-Investment: +4.0%
= +$696.33/$17,303.67
Potential Annualized Return-on-Investment: +86.4%
= (+$696.33/$17,303.67) * (365/17 days)

January 16th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had thirteen Covered Calls positions with January 16th, 2026 monthly options expiration dates.  Ten positions closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  Three positions in Microsoft Corporation, ServiceNow Inc., and Universal Health Services Inc. closed out-of-the-money so their Calls expired and the shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions (in alphabetical order) is as follows:

1. Amazon.com Inc. (AMZN) -- +1.4% absolute return (equivalent to +32.1% annualized return-on-investment) for the 16 days of this investment.  This Covered Call position was assigned at the $227.50 strike price since the stock closed in-the-money at $239.12 per share.  The original blog post detailing this Covered Call position is here. 

2. Cheniere Energy Inc. (LNG) -- +1.3% absolute return (equivalent to +34.7% annualized return-on-investment) for the 14 days of this investment.  This Covered Call position was assigned at the $190.00 strike price since the stock closed in-the-money at $206.70 per share.  The original blog post detailing this Covered Call position is here. 

3. Dexcom Inc. (DXCM) -- +1.5% absolute return (equivalent to +31.8% annualized return-on-investment) for the 17 days of this investment.  This Covered Calls position was assigned at the $65.00 strike price since the stock closed in-the-money at $69.54 per share.  The most recent blog post detailing this Covered Calls position is here.    

4. Fiserv Inc. (FISV) -- +1.9% absolute return (equivalent to +50.7% annualized return-on-investment) for the 14 days of this investment.  This Covered Calls position was assigned at the $65.00 strike price since the stock closed in-the-money at $66.29 per share.  The original blog post detailing this Covered Calls position is here.

5. Gap Inc. (GAP) -- +2.8% absolute return (equivalent to +57.0% annualized return-on-investment) for the 18 days of this investment.  This Covered Calls position was assigned at the $25.00 strike price since the stock closed in-the-money at $26.73 per share.  The original blog post detailing this Covered Calls position is here.    

6. Generac Holdings Inc. (GNRC) -- +1.2% absolute return (equivalent to +13.9% annualized return-on-investment) for the 32 days of this investment.  This Covered Calls position was assigned at the $150.00 strike price since the stock closed in-the-money at $160.85 per share.  The most recent blog post detailing this Covered Calls position is here.

7. Halozyme Therapeutics Inc. (HALO) -- +4.6% absolute return (equivalent to +34.0% annualized return-on-investment) for the 49 days of this investment.  This Covered Calls position was assigned at the $70.00 strike price since the stock closed in-the-money at $71.21 per share.  The most recent blog post detailing this Covered Calls position is here. 

8. KraneShares CSI China Internet ETF (KWEB) -- +1.8% absolute return (equivalent to +41.9% annualized return-on-investment) for the 16 days of this investment.  This Covered Calls position was assigned at the $34.00 strike price since the stock closed in-the-money at $35.71 per share.  The original blog post detailing this Covered Calls position is here.    

9. Microsoft Corporation (MSFT) -- This Covered Call position closed yesterday at $459.86 which was well below its $485.00 strike price, so the one Call option expired and 100 MSFT shares now remain in the Covered Calls Advisor Portfolio.  The most recent blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Call position by selling a Call option against the 100 Microsoft shares currently held or close out the position by selling these shares.   

10. NVIDIA Corporation (NVDA) -- +2.1% absolute return (equivalent to +54.6% annualized return-on-investment) for the 14 days of this investment.  This Covered Call position was assigned at the $185.00 strike price since the stock closed in-the-money at $186.23 per share.  The original blog post detailing this Covered Call position is here.    

11. Pinterest Inc. (PINS) -- +1.7% absolute return (equivalent to +36.1% annualized return-on-investment) for the 17 days of this investment.  This Covered Calls position was assigned at the $25.00 strike price since the stock closed in-the-money at $25.91 per share.  The original blog post detailing this Covered Calls position is here.

12. ServiceNow Inc. (NOW) -- This Covered Call position closed yesterday at $127.31 which was well below its $145.00 strike price, so the one Call option expired and 100 NOW shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Call position by selling a Call option against the 100 ServiceNow shares currently held or close out the position by selling these shares. 

13. Universal Health Services Inc. (UHS) -- This Covered Call position closed yesterday at $199.88 which was well below its $220.00 strike price, so the one Call option expired and 100 Universal Health Services shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Call position by selling the one Call option against the 100 UHS shares currently held or close out the position by selling the 100 shares.

I welcome your feedback at my email address shown below on anything related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Call in Lowe's Companies Inc.

Today, a two-week buy/write net debit limit order in Lowe's Companies Inc. (ticker LOW) was executed at the Covered Calls Advisors' net debit price of $267.84 per share.  One hundred shares were purchased at $276.50 and simultaneously one January 30th, 2026 Call option was sold for $8.66 at the $270.00 strike price, therefore a maximum time value profit potential of $2.16 per share = [$8.66 Call option premium - ($276.50 stock price - $270.00 strike price)] for the Call option portion of this trade was established.  The probability that Lowe's stock will close in-the-money on the January 30th options expiration date was 69.7% today when this position was established.

Lowe's has an upcoming quarterly ex-dividend of $1.20 per share next Tuesday (January 20th, 2026), so this dividend is included in the detailed return-on-investment calculations below.  Importantly to the Covered Calls Advisor, there is no quarterly earnings report (which increases the volatility of the stock price on the day earnings are reported) prior to the options expiration date since the next earnings report on February 25th, 2026 is after the January 30th options expiration date.

As detailed below, a potential return-on-investment result is +1.3% absolute return (equivalent to +32.6% annualized return-on-investment over the next 14 days) if the stock is assigned on the January 30th, 2026 options expiration date. 

Lowe's Companies Inc. (LOW) -- New Covered Call Position
The buy/write transaction was:
1/16/2026 Bought 100 Lowe's Companies Inc. shares @ $276.50
1/16/2026 Sold 1 Lowe's 1/30/2026 $270.00 Call option @ $8.66 per share.
Note: Implied Volatility (IV) of the Call option was at 23.2 when this position was transacted which, as preferred, is above the current VIX of 15.5.   
1/20/2026 Upcoming quarterly ex-dividend of $1.20 per share.

A possible overall performance result (including commission) for this Lowe's Companies Inc. Covered Call position is as follows:
Covered Call Cost Basis: $26,784.67
= ($276.50 - $8.66) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$865.33
= ($8.66 * 100 shares) - $.67 commission
(b) Dividend Income (If Lowe's stock assigned at the January 30th, 2026 options expiration date): +$120.00
= ($1.20 dividend per share x 100 shares)

(c) Capital Appreciation (If shares are in-the-money and therefore assigned at $270.00 strike price at the options expiration date): -$650.00

+($270.00 strike price - $276.50) * 100 shares

Total Net Profit (If Lowe's shares assigned at the $270.00 strike price at the Jan. 30th, 2026 options expiration date): +$335.33

= (+$865.33 option income + $120.00 dividend income - $650.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.3%

= +$335.33/$26,784.67

Potential Annualized Return-on-Investment: +32.6%

= (+$335.33/$26,784.67) * (365/14 days)

Established Covered Call in Palo Alto Networks Inc.

A Covered Call position was established this afternoon in Palo Alto Networks Inc. (ticker PANW).  My net buy/write limit order at $181.96 was executed by simultaneously purchasing one hundred shares at $189.28 and selling one January 30th, 2026 Call option at the $185.00 strike price at $7.32 per share, which provides a $3.04 per share = [$7.32 Call option premium received - ($189.28 stock purchase price - $185.00 option strike price)] time value profit potential.  A moderately in-the-money Covered Call position was established for this new position with the probability that Palo Alto's stock will close in-the-money on the 1/30/2026 options expiration date was 63.8% when this transaction was executed.  As I prefer, the next earnings report on February 12th, 2026 is after the January 30th, 2026 options expiration date. 

As detailed below, a potential return-on-investment result is +1.7% absolute return-on-investment (equivalent to +40.6% annualized return-on-investment for the next 15 days) if Palo Alto's share price is in-the-money (i.e. above the $185.00 strike price) and therefore assigned on its January 30th, 2026 options expiration date.  

Palo Alto Networks Inc. (PANW) -- New Covered Call Position

Today's buy/write net debit limit order transaction was as follows:
1/15/2026 Bought 100 Palo Alto Networks shares at $189.28.

1/15/2026 Sold 1 Palo Alto Networks 1/30/2026 $188.00 Call option @ $7.32 per share. The Implied Volatility of this Call option was 31.5 when this position was established. 

A possible overall performance result (including commissions) for this Palo Alto Networks Covered Call position is as follows:
Covered Call Net Investment: $18,196.67
= ($189.28 - $7.32) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$731.33
= ($7.32 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 Palo Alto shares assigned at the $185.00 strike price at expiration): -$428.00
+($185.00 strike price - $189.28 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 Palo Alto Networks shares are in-the-money and therefore assigned at the $185.00 strike price at the options expiration date): +$303.33
= (+$731.33 option income + $0.00 dividend income - $428.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.7%
= +$303.33/$18,196.67
Potential Annualized Return-on-Investment: +40.6%
= (+$037.33/$18,196.67) * (365/15 days)

Covered Calls Position Established in Dexcom Inc.

Early in this afternoon's trading session, a Covered Calls position in Dexcom Inc. (DXCM) was established when two hundred shares were purchased at $69.30 and two January 30th, 2026 Call options were sold at $4.45 per share at the $66.00 strike price.  The buy/write net debit limit order at $64.85 was executed, so the time value was $1.15 per share [$4.45 Call options premium - ($69.30 stock purchase price - $66.00 strike price)].  As I prefer, Dexcom's next quarterly earnings report on February 12th, 2026 is after the January 30th, 2026 options expiration date.  Given the Covered Calls Advisor's current cautious market outlook, an in-the-money Covered Calls position was established with a 70.5% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Dexcom designs and commercializes continuous glucose monitoring (CGM) systems for diabetic patients.  It is evolving its CGM systems to provide integration with insulin pumps from Insulet and Tandem for automatic insulin delivery.  Dexcom appeared in my recently developed "Super Growers" stock screener.  As shown below, Dexcom passed all 15 of my screener criteria including the fact that the average target price of the 25 analysts currently covering the company is +22.9% above today's stock purchase price.

  

As detailed below, a potential return-on-investment result is +1.8% absolute return-on-investment (equivalent to +40.2% annualized return-on-investment over the next 16 days) if the stock is assigned on the January 30th, 2026 options expiration date.

Dexcom Inc. (DXCM) -- New Covered Calls Position
The simultaneous buy/write transaction today was as follows:
1/14/2026 Bought 200 Dexcom Inc. shares @ $69.30
1/14/2026 Sold 2 DXCM 1/30/2026 $66.00 Call options @ $4.45 per share
Note: the Implied Volatility of the Calls was 41.9 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.7.

A possible overall performance result (including commissions) for this Dexcom Covered Calls position if assigned on the options expiration date is as follows:
Covered Calls Cost Basis: $12,971.34
= ($69.30 - $4.45) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$888.66
= ($4.45 * 200 shares) - $1.34 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Dexcom shares assigned at $66.00 strike price at options expiration): -$660.00
+($66.00 - $69.30) * 200 shares

Total Net Profit (If Dexcom shares assigned at the $66.00 strike price at the 1/30/2026 expiration): +$228.66

= (+$888.66 + $0.00 - $660.00)

Absolute Return-on-Investment (If DXCM shares assigned at $66.00 strike price on Jan. 30th, 2026 options expiration date): +1.8%

= +$228.66/$12,971.34

Annualized Return-on-Investment (If Dexcom stock assigned at $66.00 at the 1/30/2026 options expiration date): +40.2%

= (+$228.66/$12,971.34) * (365/16 days)

Closed Out NetApp Inc. Covered Call Position

Last Friday, the Covered Call position in NetApp Inc. (ticker NTAP) closed out-of-the-money at $105.39 which was below its $107.00 strike price.  When NTAP's stock price advanced to $107.10 in today's trading session, I decided to close out the position by selling the 100 shares.

As detailed below, the return-on-investment results are: +2.0% absolute return (equivalent to +27.6% annualized return-on-investment) for the 26 days of this investment.

NetApp Inc. (NTAP) -- Covered Call Position
The simultaneous net debit buy/write transaction was:
12/17/2025 Bought 100 NetApp Inc. shares @ $110.74.
12/17/2025 Sold 1 NetApp 1/9/2026 $107.00 Call option @ $5.20 per share.
Note: the Implied Volatility of this Call option was 26.3 when this position was established.

1/2/2026 NetApp ex-dividend at $.52 per share.
1/9/2026 Call option closed out-of-the-money, so the Call option expired and 100 NetApp shares remained in the Covered Calls Advisor Portfolio.

1/12/2026 Sold 100 shares of NetApp at $107.10 per share.

The overall performance results (including commission) for this NetApp Inc. Covered Call position are as follows:
Covered Call Cost Basis: $10,554.67

= ($110.74 - $5.20) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$519.33
= ($5.20 * 100 shares) - $.67 commission
(b) Dividend Income: +$52.00
= ($.52 dividend per share x 100 shares)

(c) Capital Appreciation (100 NetApp shares sold at $107.10): -$364.00
+($107.10 stock sales price - $110.74 stock purchase price) * 100 shares

Total Net Profit: +$207.33

= (+$519.33 option income + $52.00 dividend income - $364.00 capital appreciation)

Absolute Return-on-Investment: +2.0%

= +$207.33/$10,554.67

Annualized Return-on-Investment: +27.6%

= (+$207.33/$10,554.67) * (365/23 days)

Continuation of Covered Call Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Call position in NVIDIA Corporation (ticker NVDA) with 100 shares which expired last Friday with the stock at $184.86 which was below the $185.00 strike price. Today this position was continued by rolling up-and-out to the January 30th, 2026 options expiration date at the $187.50 strike price by selling-to-open one NVDA Call at $5.70 per share today when NVIDIA's stock price was $186.97.  As preferred, the next NVIDIA quarterly earnings report is not until February 25th, which is after the January 30th, 2026 options expiration date. 

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the January 30th, 2026 options expiration date is +6.8% absolute return-on-investment over 32 days (equivalent to +77.5% annualized-return-on-investment) if the stock closes above the $187.50 strike price on the 1/30/2026 options expiration date. The details showing this potential return-on-investment result are as follows:

NVIDIA Corporation (NVDA) -- Continuation of Covered Call Position

The original buy/write net debit limit order transaction was as follows:
12/29/2025 Bought 100 NVIDIA Corporation shares at $186.29.

12/29/2025 Sold 1 NVIDIA 1/9/2026 $185.00 Call option @ $5.40 per share.  

1/9/2026 One hundred NVIDIA shares closed below the $185.00 strike price at $184.86, so the Call option expired and the 100 NVIDIA shares remained in the Covered Calls Advisor Portfolio.

1/12/2026 Continued this NVIDIA Covered Call position by selling-to-open 1 January 30th, 2026 $187.50 Call option at $5.70 per share when the NVDA stock was trading at $186.97 per share.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position if the stock is in-the-money and therefore assigned on the 1/30/2026 options expiration date is as follows:
Covered Calls Net Investment: $18,089.67
= ($186.29 - $5.40) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,108.66
= ($5.40 + $5.70) * 100 shares - $1.34 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $187.50 strike price at expiration): +$121.00
+($187.50 strike price - $186.29 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $187.50 strike price at the 1/30/2026 options expiration date): +$1,229.66
= (+$1,108.66 option income + $0.00 dividend income + $121.00 capital appreciation)

Potential Absolute Return-on-Investment: +6.8%
= +$1,229.66/$18,089.67
Potential Annualized Return-on-Investment: +77.5%
= (+$1,229.66/$18,089.67) * (365/32 days)

Continued Covered Calls Position in Dell Technologies Inc.

The Covered Calls Advisor Portfolio has a Covered Calls position in Dell Technologies Inc.(ticker DELL) which expired last Friday with the stock at $120.62 which was well below the $130.00 strike price.  Today this position was continued by rolling down-and-out to the January 30th, 2026 options expiration date at the same $125.00 strike price by selling-to-open two Calls at $3.30 per share when the price of Dell's stock was $121.93.  

As detailed below, a potential outcome for this Dell Technologies Inc. investment if the stock is in-the-money and therefore assigned on the options expiration date is +3.3% absolute return-on-investment over 50 days (equivalent to +24.1% annualized-return-on-investment) if the stock closes above the $125.00 strike price on the 1/30/2026 options expiration date.    

 

Dell Technologies Inc. (DELL) -- Continuation of Covered Calls Position

The net debit buy/write limit order was executed as follows:

12/11/2025 Bought 200 shares of Dell Technologies stock @ $136.00 per share.  
12/11/2025 Sold 2 DELL December 26th, 2025 $130.00 Call options @ $8.40 per share.  Note: the Implied Volatility of the Calls was 44.1% when this position was established.  
12/26/2025 Two Dell Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/29/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $3.00 per share when the price of Dell stock was at $128.10.

1/9/2026 Two Dell 1/9/2026 $130.00 Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
1/12/2026 Continued Covered Calls position by selling-to-open two 1/30/2026 $125.00 Calls at $3.30 per share when the price of Dell stock was at $121.93.

A possible overall performance result (including commissions) if this Covered Calls position is in-the-money on the 1/30/2026 options expiration date is as follows:
Dell Technologies Covered Calls Net Investment: $25,521.34
= ($136.00 - $8.40) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,935.98
= ($8.40 + $3.00 + $3.30) * 200 shares - $4.02 commissions
(b) Dividend Income: +$105.00 = $.525 ex-div on 1/20/2026 x 200 shares
(c) Capital Appreciation (If Dell Technologies stock is above the $125.00 strike price at the January 30th options expiration date): -$2,200.00
= ($125.00 strike price - $136.00 stock purchase price) * 200 shares

Potential Total Net Profit (If in-the-money and therefore assigned at expiration): +$840.98
= (+$2,935.98 options income + $105.00 dividend income - $2,200.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 1/30/2026 options expiration date): +3.3% = +$840.98/$25,521.34

Potential Equivalent Annualized-Return-on-Investment: +24.1%
= (+$840.98/$25,521.34) x (365/50 days)

January 9th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with January 9th, 2026 options expiration dates.  One position (Medtronic PLC) closed in-the-money so the three Call options expired and the shares were called away (i.e. sold) at its $96.00 strike price.  The other three positions in NVIDIA Corporation, NetApp Inc., and Dell Holdings Inc. closed out-of-the-money so their Calls expired and their shares now remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions is as follows:

1. Medtronic PLC (MDT) -- +1.5% absolute return (equivalent to +24.2% annualized return-on-investment) for the 23 days of this investment.  This Covered Calls position was assigned at the $96.00 strike price since the stock closed in-the-money at $97.53 per share.  The original blog post detailing this Covered Calls position is here. 

2. NVIDIA Corporation (NVDA) -- This Covered Call position closed yesterday at $184.86 which was slightly below its $185.00 strike price, so the one Call option expired and 100 NVIDIA shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will most likely decide to continue this Covered Call position by selling a Call option against the 100 NVIDIA shares currently held or possibly close out the position by selling the shares.

3. NetApp Inc. (NTAP) -- This Covered Call position closed yesterday at $105.39 which was below its $107.00 strike price, so the one Call option expired and 100 NetApp shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Call position by selling a Call option against the 100 NetApp shares currently held or close out the position by selling the shares. 

4. Dell Holdings Inc. (DELL) -- This Covered Calls position closed yesterday at $120.62 which was well below its $130.00 strike price, so the two Call options expired and 200 Dell shares now remain in the Covered Calls Advisor Portfolio.  The most recent blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Callsposition by selling two Call options against the 200 Dell shares currently held or close out the position by selling the shares. 

As always, I welcome your feedback at my email address shown below on anything related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Rolled Out the Covered Calls Position in Sea Limited ADR

The Covered Calls Advisor Portfolio had a Covered Calls position in Sea Limited ADR (ticker SE) that has an options expiration date today (January 9th, 2026) at the $130.00 strike price.  Sea's stock price has decreased from $137.15 when it was originally purchased on December 1st, 2025 to $134.25 today when I decided to continue with this Covered Calls position with a two-week rollout transaction to the January 23rd, 2026 expiration and at the same $130.00 strike price.  To accomplish this rollout, a debit spread transaction was executed by simultaneously buying-to-close 2 January 9th, 2026 $130.00 Calls @ $3.60 per share (so only $.05 time value remaining since the stock price was $67.55 when this transaction was executed) and selling-to-open 3 January 16th, 2026 $65.00 Calls @ $4.21 per share--a net credit of $.61 per share to roll-up by $1.00 per share (from $64.00 to $65.00).  

Sea Ltd. is a large-cap ($72 billion enterprise value) company headquartered in Singapore.  It is a consumer internet company with three core businesses -- e-commerce, digital gaming, and fintech services.  The e-commerce business called Shopee is their largest business (by revenue) and is a mobile-centric, social-focused marketplace providing users a shopping environment with integrated payment, logistics, and seller services.  The digital gaming business is called Galena which offers mobile and personal computer online games and develops mobile games for the worldwide market. The fintech services (called Monee) includes mobile wallet services, payment processing, credit, banking, and insurance tech.  Their operations are primarily in Indonesia, Taiwan, Thailand, Singapore, Malaysia, the Philippines, and Brazil.  

As detailed below, a potential outcome for this Sea Limited investment if the stock is in-the-money and therefore assigned on the options expiration date is +5.7% absolute return-on-investment over 53 days (equivalent to +39.4% annualized-return-on-investment) if the stock closes above the $130.00 strike price on the 1/23/2026 options expiration date.   The details showing this potential return-on-investment result are as follows:

Sea Limited ADR (SE) -- Rolled Out the Covered Calls Position
The original simultaneous buy/write transaction was as follows:
12/1/2025 Bought 200 Sea Ltd. shares @ $137.15
12/1/2025 Sold 2 SE 12/19/2025 $130.00 Call options @ $9.65 per share
Note: the Implied Volatility of the Calls was 43.0 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.2.
12/19/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/26/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $2.38 per share when the price of Sea Ltd. stock was at $126.96.
1/9/2026 Sea Ltd. Covered Calls rolled out by buying-to-close the two 1/9/2026 $130.00 Calls at $4.25 per share and simultaneously selling two 1/23/2026 $130.00 Calls at $6.70 per share, so a net credit of $2.45 per share.

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if the stock price is in-the-money and therefore assigned at the $130.00 strike price on the options expiration date is as follows:

Covered Calls Cost Basis: $25,501.34
= ($137.15 - $9.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,890.64
= ($9.65 + $2.38 - $4.25 + $6.70) * 200 shares - $5.36 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $130.00 strike price at the 1/23/2026 options expiration date): -$1,430.00
+($130.00 strike price - $137.15 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $130.00 strike price on the 1/23/2026 options expiration date): +$1,460.64

= (+$2,890.64 options income + $0.00 dividend income - $1,430.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $130.00 strike price on the 1/23/2026 options expiration date): +5.7%

= +$1,460.64/$25,501.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $130.00 strike price at the 1/23/2026 options expiration date): +39.4%

= (+$1,460.64/$25,501.34) * (365/53 days)

  

Rolled Up-and-Out the Covered Calls Position in Dexcom Inc.

The Covered Calls Advisor Portfolio had a Covered Calls position in Dexcom Inc. (ticker DXCM) that has an options expiration date today at the $64.00 strike price.  Dexcom's stock price had increased slightly from $66.66 when it was originally purchased on December 23rd, 2025 to $67.55 today when I decided to continue with this Covered Calls position with a one-week roll up-and-out transaction to the monthly January 16th, 2026 $65.00 strike price.  To accomplish this rollout, a debit spread transaction was executed by simultaneously buying-to-close 3 January 9th, 2026 $65.00 Calls @ $3.60 per share (so only $.05 time value remaining since the stock price was $67.55 when this transaction was executed) and selling-to-open 3 January 16th, 2026 $65.00 Calls @ $4.21 per share--a net credit of $.61 per share to roll-up by $1.00 per share (from $64.00 to $65.00).  

As detailed below, a potential return-on-investment result is +4.0% absolute return-on-investment (equivalent to +69.7% annualized return-on-investment over the 24 days duration of this Covered Calls position) if the stock is assigned on the January 16th, 2026 options expiration date.

Dexcom Inc. (DXCM) -- Rolled Up-and-Out this Covered Calls Position
The original simultaneous buy/write transaction today was as follows:
12/23/2025 Bought 300 Dexcom Inc. shares @ $66.66
12/23/2025 Sold 3 DXCM 1/9/2026 $64.00 Call options @ $3.60 per share
Note: the Implied Volatility of the Calls was 33.1 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 14.1.
1/9/2026 Dexcom Covered Calls rolled up-and-out by buying-to-close the three 1/9/2026 $64.00 Calls at $3.60 per share and simultaneously selling three 1/16/2026 $65.00 Calls at $4.21 per share, so a net credit of $.61 per share.

A possible overall performance result (including commissions) for this Dexcom Covered Calls position if assigned on the options expiration date is as follows:
Covered Calls Cost Basis: $18,920.01
= ($66.66 - $3.60) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,256.97
= ($3.60 - $3.60 +$4.21) * 300 shares - $6.03 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Dexcom shares assigned at $65.00 strike price at the 1/16/2026 options expiration date): -$498.00
+($65.00 - $66.66) * 300 shares

Total Net Profit (If Dexcom shares assigned at the $65.00 strike price at the 1/16/2026 options expiration date): +$758.97

= (+$1,256.97 options income + $0.00 dividend income - $498.00 capital appreciation)

Absolute Return-on-Investment (If DXCM shares assigned at $65.00 strike price on Jan. 16th, 2026 options expiration date): +4.0%

= +$758.97/$18,920.01

Annualized Return-on-Investment (If Dexcom stock assigned at $65.00 at the 1/16/2026 options expiration date): +69.7%

= (+$758.97/$18,920.01) * (365/24 days)

Covered Call Position Established in Arista Networks Inc.

Today a Covered Call position in Arista Networks Inc. (ANET) was established when one hundred shares were purchased at $123.85 and one January 23rd, 2026 Call option was sold at $8.15 per share at the $118.00 strike price.  The buy/write net debit limit order at $115.70 was executed, so the time value was $2.30 per share [$8.15 Call option premium - ($123.85 stock purchase price - $118.00 strike price)].  As I prefer, Arista's next quarterly earnings report on February 24th, 2026 is after the January 23rd, 2026 options expiration date.  An in-the-money Covered Call position was established with a 68.4% probability of assignment on the options expiration date. 

Arista Networks is the technology leader in high-speed switching for enterprise networks and has established itself in the most cutting-edge apps for the hyperscalers, which makes it a significant beneficiary of AI spending.  Its Extensible Operating System (EOS) provides customers a modular software solution scalable for networks of any size, which will also be attractive for smaller enterprises building out private clouds or on-premises data centers.

Arista passed all criteria in my Super Growers stock screener which is shown in the table below.  Furthermore, the average target price of the 19 analysts currently covering the company is +35% above today's stock purchase price and it is Buy rated by all four third-party stock research services provided by my broker (Schwab) -- CFRA, Morningstar, Argus, and LSEG Stocks Plus Reports.  It is also Buy rated by Schwab Equity Ratings.  Finally, I like the fact that (unlike the majority of S&P 500 companies) Arista's quarterly Non-GAAP EPS consistently mirror their GAAP EPS.

As detailed below, a potential return-on-investment result for this Arista Networks Covered Call is +2.0% absolute return-on-investment (equivalent to +48.2% annualized return-on-investment over the next 15 days) if the stock is in-the-money and therefore assigned on its January 23rd, 2026 options expiration date.

Arista Networks Inc. (ANET) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
1/8/2026 Bought 100 Arista Networks shares @ $123.85
1/8/2026 Sold 1 ANET 1/23/2026 $118.00 Call option @ $8.15 per share
Note: the Implied Volatility of this Call option was 46.3 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently 15.3.

A possible overall performance result (including commissions) for this Arista Networks Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $11,570.67
= ($123.85 - $8.15) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$814.33
= ($8.15 * 100 shares) - $.67 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Arista shares assigned at $118.00 strike price at options expiration): -$585.00
+($118.00 strike price - $123.85 stock purchase price) * 100 shares

Total Net Profit (If Arista Networks shares assigned at the $118.00 strike price at the 1/23/2026 expiration): +$229.33

= (+$814.33 Call option income + $0.00 dividend income - $585.00 capital appreciation)

Absolute Return-on-Investment (If Arista's shares assigned at the $118.00 strike price on Jan. 23rd, 2026 options expiration date): +2.0%

= +$229.33/$11,570.67

Annualized Return-on-Investment (If Arista's stock is assigned at the $118.00 strike price on the 1/23/2026 options expiration date): +48.2%

= (+$229.33/$11,570.67) * (365/15 days)

Continuation of Covered Call Position in Microsoft Corporation

The Covered Calls Advisor Portfolio has a Covered Call position in Microsoft Corporation (ticker MSFT) which expired last Friday (January 2nd, 2026).  Today I decided to continue this position by rolling down-and-out from the $487.50 strike price to the January 16th, 2026 options expiration at the $485.00 strike price by selling-to-open one Call at $5.40 per share when Microsoft's stock price was $482.52.  

As detailed below, a potential outcome for this Microsoft investment if the stock is in-the-money and therefore assigned on the January 16th, 2026 options expiration date is +0.2% absolute return-on-investment over 78 days (equivalent to +1.1% annualized-return-on-investment) if the stock closes above the $485.00 strike price on the 1/16/2026 options expiration date.  Although this would be a small return-on-investment result, it shows that selling in-the-money strike prices can still be profitable even when there is a substantial decline in the stock price -- for example, from $522.64 to $485.00 (-7.2% decline) in this Microsoft position.  The potential return-on-investment results are detailed below as follows:

Microsoft Corporation (MSFT) -- Continuation of Covered Call Position

The net debit buy/write limit order was executed as follows:
10/30/2025 Bought 100 shares of Microsoft stock @ $522.64 per share.  
10/30/2025 Sold 1 MSFT November 7th, 2025 $512.50 Call option @ $14.08 per share.  The Implied Volatility of the Call was 25.3 when this transaction was executed.

11/7/2025 One hundred Microsoft shares closed below the $512.50 strike price at $496.77, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

11/10/2025 Continued this Microsoft Corporation Covered Call position by selling 1 November 14th, 2025 $505.00 Call option at $4.00 per share when the stock was trading at $502.45 per share.

11/14/2025 One Microsoft 11/14/2025 $505.00 Call option expired out-of-the-money, so the 100 Microsoft shares remain in the Covered Calls Advisor Portfolio.

11/20/2025 Ex-dividend of $.91 per share.

11/28/2025 Continued this Microsoft Covered Call position by rolling down-and-out by selling one 12/12/2025 $492.50 Call option at $8.20 per share.  

12/12/2025 One hundred Microsoft shares closed below the $492.50 strike price, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

12/18/2025 Continued this Microsoft Corporation Covered Call position by selling 1 January 2nd, 2026 $487.50 Call option at $6.30 per share when the stock was trading at $484.12 per share.

1/2/2026 One hundred Microsoft shares closed below the $487.50 strike price, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

1/7/2026 Continued this Microsoft Corporation Covered Call position by selling 1 January 16th, 2026 $485.00 Call option at $5.40 per share when the stock was trading at $482.40 per share.  

A possible overall performance result (including commissions) if this position is assigned on its 1/16/2026 options expiration date is as follows:
Microsoft Covered Call Net Investment: $50,856.67
= ($522.64 - $14.08) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$3,794.65
= ($14.08 + $4.00 + $8.20 + $6.30 + $5.40) * 100 shares - $3.35 commissions
(b) Dividend Income: +$91.00 = $.91 ex-dividend x 100 shares
(c) Capital Appreciation (If Microsoft stock is above the $485.00 strike price at the January 16th, 2026 option expiration date): -$3,764.00
= ($485.00 strike price - $522.64 stock purchase price) * 100 shares

Potential Total Net Profit (If assigned at expiration): +$121.65
= (+$3,794.65 Call option income + $91.00 dividend income - $3,764.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.2%
= +$121.65/$50,856.67
Potential Equivalent Annualized-Return-on-Investment: +1.1%
= (+$121.65/$50,856.67) * (365/78 days)

Covered Call Position Established in ServiceNow Inc.

Today a short-term Covered Call position in ServiceNow Inc. (NOW) was established when one hundred shares were purchased at $148.32 and one January 16th, 2026 Call option was sold at $5.20 per share at the $145.00 strike price.  The buy/write net debit limit order at $143.12 was executed, so the time value was $1.88 per share [$5.20 Call option premium - ($148.32 stock purchase price - $145.00 strike price)].  As I prefer, ServiceNow's next quarterly earnings report on January 28th, 2026 is after the January 16th, 2026 options expiration date.  An in-the-money Covered Call position was established with a 66.7% probability of assignment on the options expiration date. 

ServiceNow Inc. is an enterprise software company that provides a cloud-based platform to automate and manage digital workflows, helping organizations streamline processes across IT, HR, customer service, security, and other business functions. Its AI-powered Now platform connects people, data, and workflows to reduce manual work, improve efficiency, and enable digital transformation at scale. ServiceNow’s solutions are widely used by large enterprises globally to break down silos and enable work to flow more smoothly across departments. ServiceNow’s success has been rapid and organic. They offer high-end enterprise-grade solutions and boasts elite-level customer retention of 98%. ServiceNow focuses on the largest enterprises worldwide and these customers continue to renew for larger contracts containing more products. Additionally, customers are re-upping for more than one solution, as more than 75% of customers are multiproduct purchasers, which is driving deal sizes higher.

ServiceNow passed all criteria in my Super Growers stock screener which is shown below.  Furthermore, the average target price of the 40 analysts currently covering the company is +51.7% above today's stock purchase price and it is Buy rated by all four third-party stock research services provided by my broker (Schwab) -- CFRA, Morningstar, Argus, and LSEG.

 As detailed below, a potential return-on-investment result is +1.3% absolute return-on-investment (equivalent to +47.8% annualized return-on-investment over the next 10 days) if the stock is assigned on the January 16th, 2026 options expiration date.

ServiceNow Inc. (NOW) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
1/6/2026 Bought 100 ServiceNow Inc. shares @ $148.32
1/6/2026 Sold 1 ServiceNow 1/16/2026 $145.00 Call option @ $5.20 per share
Note: the Implied Volatility of this Call option was 31.4 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 15.0.

A possible overall performance result (including commissions) for this ServiceNow Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $14,312.67
= ($148.32 - $5.20) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$519.33
= ($5.20 * 100 shares) - $.67 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If ServiceNow shares assigned at $145.00 strike price at options expiration): -$332.00
+($145.00 strike price - $148.32 stock purchase price) * 100 shares

Total Net Profit (If ServiceNow shares assigned at the $145.00 strike price at the 1/16/2026 expiration): +$187.33

= (+$519.33 Call option income + $0.00 dividend income - $332.00 capital appreciation)

Absolute Return-on-Investment (If ServiceNow shares assigned at $145.00 strike price on Jan. 16th, 2026 options expiration date): +1.3%

= +$187.33/$14,312.67

Annualized Return-on-Investment (If ServiceNow's stock is assigned at $145.00 at the 1/16/2026 options expiration date): +47.8%

= (+$187.33/$14,312.67) * (365/10 days)

Established Covered Call in NVIDIA Corporation

A third Covered Call position was established yesterday in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $176.52 was executed by simultaneously purchasing one hundred shares at $187.67 and selling one January 23rd, 2026 Call option at the $180.00 strike price at $11.15 per share, which provides a $3.48 per share = [$11.15 Call option premium received - ($187.67 stock purchase price - $180.00 option strike price)] time value profit potential.  This new position continues my recent practice of having a NVIDIA Covered Call position expiring each week.  A moderately in-the-money Covered Call position was established for this new position with the probability that NVIDIA's stock will close in-the-money on the 1/23/2026 options expiration date was 67.5% when this transaction was executed.  As I prefer, the next earnings report on February 25th, 2026 is after the January 23rd, 2026 options expiration date. 

As detailed below, a potential return-on-investment result is +2.0% absolute return-on-investment (equivalent to +39.9% annualized return-on-investment for the next 18 days) if NVIDIA's share price is in-the-money (i.e. above the $180.00 strike price) and therefore assigned on its January 23rd, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
1/5/2026 Bought 100 NVIDIA Corporation shares at $187.67.

1/5/2026 Sold 1 NVIDIA 1/23/2026 $180.00 Call option @ $11.15 per share. The Implied Volatility of this Call option was 39.3 when this position was established. 

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $17,652.67
= ($187.67 - $11.15) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,114.33
= ($11.15 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $180.00 strike price at expiration): -$767.00
+($180.00 strike price - $187.67 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $180.00 strike price at the options expiration date): +$347.33
= (+$1,114.33 option income + $0.00 dividend income - $767.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.0%
= +$347.33/$17,652.67
Potential Annualized Return-on-Investment: +39.9%
= (+$347.33/$17,652.67) * (365/18 days)

Continuation of Covered Calls Position in Generac Holdings Inc.

The Covered Calls Advisor Portfolio has a Covered Calls position in Generac Holdings Inc. (ticker GNRC) which expired last Friday with the stock at $141.10 which was well below the $155.00 strike price.  Today this position was continued by rolling down-and-out to the January 16th, 2026 monthly options expiration date at the $150.00 strike price by selling-to-open two Calls at $3.05 per share when the price of Generac's stock was $147.56.  

As detailed below, a potential outcome for this Generac investment if the stock is in-the-money and therefore assigned on the options expiration date is +1.2% absolute return-on-investment over 32 days (equivalent to +13.9% annualized-return-on-investment) if the stock closes above the $150.00 strike price on the 1/16/2026 options expiration date.   The details showing this potential return-on-investment result are as follows:  

Generac Holdings Inc. (GNRC) -- Continuation of Covered Calls Position

Today's buy/write net limit order transaction was as follows:
12/15/2025 Bought 200 Generac shares at $158.49.

12/15/2025 Sold 2 Generac 1/2/2026 $155.00 Call options @ $7.29 per share.  The Implied Volatility of these Calls was 37.5 when this position was established.  

1/2/2026 Two Generac Calls expired out-of-the-money, so 200 Generac shares remain in the Covered Calls Advisor Portfolio

1/5/2026 Continued this Covered Calls position by selling-to-open two Generac January 16th, 2026 $150.00 Call options at $3.05 per share.  The Implied Volatility of these Calls was 40.8 when they were sold.

A possible overall performance result (including commissions) for this Generac Covered Calls position if the stock is in-the-money and therefore assigned at the $150.00 strike price is as follows:
Covered Calls Net Investment: $30,241.34
= ($158.49 - $7.29) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,065.32
= ($7.29 +$3.05) * 200 shares - $2.68 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 Generac shares assigned (i.e. above the $150.00 strike price) on the 1/16/2026 options expiration date): -$1,698.00
+($150.00 strike price - $158.49 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 Generac shares assigned at the $150.00 strike price on the 1/16/2026 options expiration date): +$367.32

= ($2,065.32 options income + $0.00 dividend income - $1,698.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 Generac shares assigned at the $150.00 strike price on the 1/16/2026 options expiration date): +1.2%
= (+$367.32/$30,241.34)

Potential Annualized Return-on-Investment (If 200 Generac shares assigned at the $155.00 strike price on the 1/2/2026 options expiration date): +13.9%
= (+$758.66/$30,241.34) * (365/32 days)

January 2nd, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with January 2nd, 2026 options expiration dates.  Two positions (both in NVIDIA Corporation) closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  The other two positions in Generac Holdings Inc. and Microsoft Corporation closed out-of-the-money so their Calls expired and their shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions is as follows:

1. NVIDIA Corporation (NVDA) -- +11.2% absolute return (equivalent to +95.0% annualized return-on-investment) for the 43 days of this investment.  This Covered Calls position was assigned at the $182.50 strike price since the stock closed in-the-money at $188.85 per share.  The most recent blog post detailing this Covered Calls position is here. 

2. NVIDIA Corporation (NVDA) -- +3.0% absolute return (equivalent to +79.0% annualized return-on-investment) for the 14 days of this investment.  This Covered Call position was assigned at the $180.00 strike price since the stock closed in-the-money at $188.85 per share.  The original blog post detailing this Covered Call position is here. 

3. Generac Holdings Inc. (GNRC) -- This Covered Calls position closed yesterday at $141.10 which was well below its $155.00 strike price, so the two Call options expired and 200 Generac shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Calls position by selling two Call options against the 200 Generac shares currently held or close out the position by selling the 200 shares.   

4. Microsoft Corporation (MSFT) -- This Covered Call position closed yesterday at $472.94 which was below its $487.50 strike price, so the one Call option expired and 100 MSFT shares now remain in the Covered Calls Advisor Portfolio.  The most recent blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Call position by selling one Call option against the 100 Microsoft shares currently held or close out the position by selling the 100 shares.   

I welcome your feedback at my email address shown below on anything related to the Covered Calls investing strategy.

Wishing You a Happy, Healthy, and Prosperous New Year!

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Call in NVIDIA Corporation

A Covered Call position of two weeks duration was established today in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $181.20 was executed by simultaneously purchasing one hundred shares at $188.64 and selling one January 16th, 2026 Call option at the $185.00 strike price at $7.44 per share, which provides a $3.80 per share = [$7.44 Call option premium received - ($188.64 stock purchase price - $185.00 option strike price)] time value profit potential.  Since NVIDIA is my #1 preferred megacap tech company investment at present, this new position continues my recent practice of having a NVIDIA Covered Call position expiring each week.  A slightly in-the-money Covered Call position was established for this new position with the probability that NVIDIA's stock will close in-the-money on the 1/16/2026 options expiration date was 60.1% when this transaction was executed.  As I prefer, the next earnings report on February 25th, 2026 is after the 1/16/2026 options expiration date. 

As detailed below, a potential return-on-investment result is +2.1% absolute return-on-investment (equivalent to +54.6% annualized return-on-investment for the next 14 days) if NVIDIA's share price is in-the-money (i.e. above the $185.00 strike price) and therefore assigned on its January 16th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
1/2/2026 Bought 100 NVIDIA Corporation shares at $188.64.

1/2/2026 Sold 1 NVIDIA 1/16/2026 $185.00 Call option @ $7.44 per share.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $18,120.67
= ($188.64 - $7.44) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$743.33
= ($7.44 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $185.00 strike price at expiration): -$364.00
+($185.00 strike price - $188.64 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $185.00 strike price at the options expiration date): +$379.33
= (+$743.33 option income + $0.00 dividend income - $364.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.1%
= +$379.33/$18,120.67
Potential Annualized Return-on-Investment: +54.6%
= (+$379.33/$18,120.67) * (365/14 days)

Established Covered Calls in Fiserv Inc.

This afternoon I established a Covered Calls position of in Fiserv Inc. (ticker FISV).  My net buy/write limit order at $63.76 was executed by simultaneously purchasing three hundred shares at $65.92 and selling three January 16th, 2026 Call options at $2.16 per share and at the $65.00 strike price. An in-the-money Covered Calls position was established with the probability that Fiserv's stock will close in-the-money (i.e. above the $65.00 strike price) on the 1/16/2026 options expiration date was 58.8% when this transaction was executed.  Also, the next earnings report on February 4th, 2026 is after the January 16th, 2026 options expiration date.  

Fiserv's most recent quarterly report shown here encourages me to believe that the 68% stock price decline in 2025 might signal a price trough.  The new top management team seems ready to steer the company's future in a positive direction.  Wall Street analysts seem to agree since they have a current average target price which is +41% above today's stock purchase price.

As detailed below, a potential return-on-investment result if the stock closes above the $65.00 strike price on the 1/16/2026 expiration date is +1.9% absolute return-on-investment (equivalent to +50.7% annualized return-on-investment for the next 14 days). 

Fiserv Inc. (FISV) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
1/2/2026 Bought 300 Fiserv shares at $65.92.

1/2/2026 Sold 3 Fiserv 1/16/2026 $65.00 Call options @ $2.16 per share.  The Implied Volatility of these Calls was 31.4 when this position was established.  

A possible overall performance result (including commissions) for this Fiserv Covered Calls position is as follows:
Covered Calls Net Investment: $19,030.01
= ($65.92 - $2.16) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$645.99
= ($2.16 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Fiserv shares assigned (i.e. above the $65.00 strike price) on the 1/16/2026 options expiration date): -$276.00
+($65.00 strike price - $65.92 stock purchase price) * 300 shares

Total Net Profit Potential (If 300 Fiserv shares assigned at the $65.00 strike price on the 1/16/2026 options expiration date): +$369.99

= ($645.99 options income + $0.00 dividend income - $276.00 capital appreciation)

Potential Absolute Return-on-Investment (If 300 Fiserv shares assigned at the $65.00 strike price on the 1/16/2026 options expiration date): +1.9%
= (+$369.99/$19,030.01)

Potential Annualized Return-on-Investment (If 300 Fiserv shares assigned at the $65.00 strike price on the 1/16/2026 options expiration date): +50.7%
= (+$369.99/$19,030.01) * (365/14 days)

Covered Call Position Established in Cheniere Energy Inc.

Early in this morning's trading session, a Covered Call position in Cheniere Energy Inc. (LNG) was established when one hundred shares were purchased at $193.83 and one January 16th, 2026 Call option was sold at $6.33 per share at the $190.00 strike price.  The buy/write net debit limit order at $190.00 was executed, so the time value was $2.50 per share [$6.33 Call option premium - ($193.83 stock purchase price - $190.00 strike price)].  As I prefer, Cheniere's next quarterly earnings report on February 19th, 2026 is after the January 16th, 2026 options expiration date.  An in-the-money Covered Call position was established with a 66.9% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Cheniere Energy, Inc. is the producer and exporter of liquefied natural gas (LNG) in the United States. The Company provides clean and secure LNG to integrated energy companies, utilities, and energy trading companies worldwide. It operates two natural gas liquefaction and export facilities at Sabine Pass, Louisiana (Sabine Pass LNG Terminal) and near Corpus Christi, Texas (Corpus Christi LNG Terminal). Sabine Pass LNG Terminal, which has natural gas liquefaction facilities consisting of six operational trains, for a total production capacity of approximately 30 million tons per annum (mtpa) of LNG (the SPL Project). Corpus Christi LNG Terminal near Corpus Christi, Texas, consists of three trains for a total production capacity of approximately 15 mtpa of LNG, three LNG storage tanks and two marine berths. It also owns and operates a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several large interstate and intrastate pipelines.

Cheniere passed all criteria in my Earnings Growers stock screener which is shown below.  Furthermore, the average target price of the 21 analysts currently covering the company is +39.6% above today's stock purchase price and it is Buy rated by all four third-party stock research services provided by my broker (Schwab) -- CFRA, Morningstar, Argus, and LSEG.

 As detailed below, a potential return-on-investment result is +1.3% absolute return-on-investment (equivalent to +34.7% annualized return-on-investment over the next 14 days) if the stock is assigned on the January 16th, 2026 options expiration date.

Cheniere Energy Inc. (LNG) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
1/2/2026 Bought 100 Cheniere Energy Inc. shares @ $193.83
1/2/2026 Sold 1 LNG 1/16/2026 $190.00 Call option @ $6.33 per share
Note: the Implied Volatility of the Call was 27.6 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 14.7.

A possible overall performance result (including commissions) for this Cheniere Energy Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $18,750.67
= ($193.83 - $6.33) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$632.33
= ($6.33 * 100 shares) - $.67 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Cheniere Energy shares assigned at $190.00 strike price at options expiration): -$383.00
+($190.00 strike price - $193.83 stock purchase price) * 100 shares

Total Net Profit (If Cheniere Energy shares assigned at the $190.00 strike price at the 1/16/2026 expiration): +$249.33

= (+$632.33 Call option income + $0.00 dividend income - $383.00 capital appreciation)

Absolute Return-on-Investment (If Cheniere Energy shares assigned at $190.00 strike price on Jan. 16th, 2026 options expiration date): +1.3%

= +$249.33/$18,750.67

Annualized Return-on-Investment (If Cheniere's stock is assigned at $190.00 at the 1/16/2026 options expiration date): +34.7%

= (+$249.33/$18,750.67) * (365/14 days)