August 14th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Call positions with August 14th, 2026 options expirations and both positions (D.R. Horton Inc. and NVIDIA Corporation) closed with their stock prices in-the-money.  So, their Calls expired with no remaining time value and the Covered Calls were closed out by the stocks being sold at their respective strike prices on their August 14th options expiration date. The return-on-investment details for each position is as follows:

1. D.R. Horton Inc. (DHI) -- +1.6% absolute return-on-investment (equivalent to +39.4% annualized return-on-investment) for the 15 days of this investment.  This D.R. Horton Covered Call position had a $140.00 strike price and it closed at $148.81 yesterday.  The original blog post showing the details of this position is here. 

2. Nvidia Corporation (NVDA) -- +3.7% absolute return-on-investment (equivalent to +83.3% annualized return-on-investment) for the 16 days of this investment.  This NVIDIA Covered Call position had a $190.00 strike price and it closed at $225.16 yesterday.  The original blog post showing the details of this position is here.

I look forward to receiving your emails with your questions/comments at the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Early Assignment of Covered Call Position in Expand Energy Corporation

I was notified by Schwab early this morning that the one Expand Energy Corporation August 21st, 2026 Call option was exercised yesterday on the day prior to today's $.575 ex-dividend date.  The Expand Energy stock price increased from $91.26 when this position was established to $96.28 at yesterday's market close, the original $1.40 time value in the Call option when the position was established had declined on yesterday's market close to $0.62.  So, with 9 days remaining until the August 21st options expiration date, the owner of this Call exercised their option to buy the 100 EXE shares at the $90.00 strike price in order to receive today's $.575 per share ex-dividend. 

I was surprised that the owner of this Call option exercised their right in this instance since they decided to immediately forego the remaining $.62 time value profit potential (which I am pleased to have received as an immediate profit addition to my return-on-investment result for this position). I am also pleased with the +72.1% annualized-return-on-investment (aroi) result achieved today by early assignment since it exceeds the maximum +50.8% aroi that might have been achieved if this position instead remained in-the-money and would therefore be assigned on its August 21st, 2026 options expiration date.   

The post when this Expand Energy Covered Call position was originally established is shown here.

As detailed below, the return-on-investment result for this Expand Energy Covered Call position was +1.6% absolute return in 8 days (equivalent to a +72.1% annualized return-on-investment).

Expand Energy Corporation (EXE) -- Covered Call Position Closed by Early Assignment
The Buy/Write transaction was as follows:
8/5/2026 Bought 100 shares of Expand Energy Corp. stock @ $91.26 per share.  
8/5/2026 Sold 1 Expand Energy August 21st, 2026 $90.00 Call option @ $2.66 per share.  The Implied Volatility of the Call option was 26.6 which, as preferred, is well above the current 15.5 of VIX.
8/13/2026 One Expand Energy Call was exercised on the day prior to its August 13th, 2026 ex-dividend date, so the Call option expired and the 100 Expand Energy shares were sold at the $90.00 strike price, which closed out this Covered Call position.

The overall performance results (including commissions) are as follows:
Covered Call Position Net Investment: $8,860.67
= ($91.26 - $2.66) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$266.00
= ($2.66 * 100 shares)
(b) Dividend Income (EXE Call option exercised early on Aug. 12th, the last business day prior to the August 13th ex-div date): +$0.00
(c) Capital Appreciation: -$126.00
+($90.00 strike price - $91.26 stock price) * 100 shares

Total Net Profit: +$140.00

= (+$266.00 option income +$0.00 dividend income -$126.00 capital appreciation)

Absolute Return-on-Investment: +1.6%

= +$140.00/$8,860.67

Annualized Return-on-Investment: +72.1%

= (+$140.00/$8,860.67) * (365/8 days)

Covered Call Position Established in Alphabet Inc.

A new short-term Covered Call net debit buy/write limit order was established yesterday afternoon in Alphabet Inc. (ticker GOOGL) for the August 21st, 2026 expiration and at the $335.00 strike price.  The order was placed at a $332.05 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $2.95 per share [$14.67 Call option premium - ($346.72 stock purchase price - $335.00 strike price)].  The probability that this position will be in-the-money and therefore assigned on its options expiration date was 74.6% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 10 days (equivalent to a +32.4% annualized return-on-investment).  

Alphabet Inc. (GOOGL) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
8/11/2026 Bought 100 shares of Alphabet Inc. stock @ $346.72 per share.  
8/11/2026 Sold 1 Alphabet Inc. August 21st $335.00 Call option @ $14.67 per share.
Note: The Implied Volatility of the Call options was 30.8 when this transaction was executed which, as I prefer, is well above the current 15.4 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $33,205.67
= ($346.72 - $14.67) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,466.33
= ($14.67 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $335.00 strike price at the 8/21/2026 options expiration date): -$1,172.00
= ($335.00 strike price - $346.72 stock purchase price) * 100 shares

Total Net Profit Potential: +$294.33
= (+$1,466.33 option income +$0.00 dividend income - $1,172.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$294.33/$33,205.67
Potential Equivalent Annualized Return-on-Investment: +32.4%
= (+$294.33/$33,205.67) * (365/10 days)

Established Covered Calls in Otis Worldwide Corporation

A short-term Covered Calls position of 10 days duration was established late this morning in Otis Worldwide Corporation (ticker OTIS).  My buy/write net debit limit order at $71.70 was executed and the time value was $.80 per share [$1.38 Call options premium - ($73.08 stock purchase price - $72.50 strike price)].  An in-the-money strike price was established with the probability that Otis' stock will close in-the-money (i.e. above the $72.50 strike price) on the 8/21/2026 options expiration date was 57.5% when this transaction was executed.  An upcoming ex-dividend this Friday of $.44 per share is included in the potential return-on-investment results shown below.  

As detailed below, a potential return-on-investment result if Otis' share price is in-the-money (i.e. above the $72.50 strike price) and therefore assigned on its August 21st, 2026 options expiration date is +1.7% absolute return-on-investment (equivalent to +62.8% annualized return-on-investment for the next 10 days).

Otis Worldwide Corporation (OTIS) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
8/11/2026 Bought 200 Otis Worldwide Corporation shares at $73.08.

8/11/2026 Sold 2 Otis 88/21/2026 $72.50 Call options @ $1.38 per share.  The Implied Volatility of these Calls was 26.7 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) which was 15.4.

8/14/2026 Ex-dividend of $.44 per share.  

A possible overall performance result (including commissions) for this Otis Worldwide Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $14,341.34
= ($73.08 - $1.38) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$274.66
= ($1.38 * 200 shares) - $1.34 commission
(b) Dividend Income: +$88.00 = $.44 per share x 200 shares
(c) Capital Appreciation (If 200 Otis shares assigned (i.e. above the $72.50 strike price) on the 8/21/2026 options expiration date): -$116.00
+($72.50 strike price - $73.08 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 Otis Worldwide Corp. shares assigned at the $72.50 strike price on the 8/21/2026 options expiration date): +$246.66

= (+$274.66 options income + $88.00 dividend income - $116.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 Otis shares assigned (i.e. sold) at the $72.50 strike price on the 8/21/2026 options expiration date): +1.7%

= (+$246.66/$14,341.34)

Potential Annualized Return-on-Investment (If 200 Otis shares assigned at the $72.50 strike price on the 8/21/2026 options expiration date): +62.8%
= (+$246.66/$14,341.34) * (365/10 days)

Early Assignment of Covered Calls Position in IBM Corporation

I was notified via email early this morning by my broker (Schwab) that two IBM Corporation (ticker IBM) August 21st, 2026 Call options were exercised early.  IBM's stock price increased from $217.67 when this position was established to $237.28 at yesterday's market close.  The original $3.98 time value in the Call options when the position was established had declined completely to $0.00 at yesterday's market close. So, with 14 days remaining until the 8/21/2026 options expiration date, the owner of these Calls exercised their option to buy the 200 shares at the $205.00 strike price in order to receive Monday's $1.69 per share ex-dividend -- so I achieved all of the original $3.98 per share time value as profit.  

Although I will not receive the ex-dividend, I am pleased with the +51.5% annualized-return-on-investment (aroi) result achieved since it exceeds the 41.1% maximum aroi that might have been achieved if this position instead had remained in-the-money and would have therefore been assigned on its upcoming August 21st options expiration date.   

The post when this IBM Covered Calls position was originally established is here.  

As detailed below, the return-on-investment result for this IBM Corporation Covered Calls position was +2.0% absolute return in 14 days (equivalent to a +51.5% annualized return-on-investment).

IBM Corporation (IBM) -- Covered Calls Position Closed by Early Assignment

The detailed transactions for this position were as follows:

7/27/2026 Bought 200 IBM Corporation shares @ $217.67
7/27/2026 Sold 2 IBM 7/27/2026 $205.00 Call options @ $16.65 per share.
8/7/2026 Early Assignment of these two IBM Call options, so the Calls expired and 200 IBM shares were sold at the $205.00 strike price.

The overall performance results (including commissions) for this IBM Covered Calls position are as follows:
Covered Calls Net Investment: $40,205.34
= ($217.67 - $16.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$3,328.66
= ($16.65 * 200 shares) - $1.34 commission
(b) Dividend Income (Two Call options exercised early on August 7th, the last business day prior to the August 10th, 2026 ex-div date): +$0.00
(c) Capital Appreciation (IBM Call options assigned early): -$2,534.00
+($205.00 strike price - $217.67 stock purchase price) * 200 shares

Total Net Profit [Two Call options exercised early]: +$794.66

= (+$3,328.66 options income +$0.00 dividend income -$2,534.00 capital appreciation)

Absolute Return-on-Investment: +2.0%

= +$794.66/$40,205.34

Annualized Return-on-Investment: +51.5%

= (+$794.66/$40,205.34) * (365/14 days)

Covered Call Position Established in AppLovin Corporation

This morning a new short-term Covered Call net debit buy/write limit order was established in AppLovin Corporation (ticker APP) for the August 21st, 2026 expiration and at the $310.00 strike price.  The stock price declined by 20% this morning after yesterday afternoon's quarterly earnings results.  Investors reacted negatively to quarterly revenue and forward quarter guidance that were slightly below expectations.  But I believe this decline is overdone since this year's earnings and next year's forecasted growth now imply a forward PEG Ratio less than 1.0. 

Today's limit order was placed at a $301.02, so the extrinsic value (which represents the maximum profit potential for this position) was $8.98 per share [$34.00 Call option premium - ($335.02 stock purchase price - $310.00 strike price)].  The Implied Volatility of the Call option was 70.2% and the probability that this position will be in-the-money and therefore assigned on its options expiration date was 69.2% when this order was transacted.

AppLovin is a $140 billion market cap (now only $113 billion after today's drop) leading global provider of a full-stack AI/Machine Learning powered software platform for advertisers to monetize their mobile advertising applications content.  They have a self-serve ads-management dashboard that has enhanced the rate at which they add new customers which will continue to support their revenue growth and also their substantial GAAP profit margins.  Their visionary CEO is Adam Foroughi who was one of the co-founders of the company in 2012.  Their IPO was in 2021.  They employ highly educated machine learning research scientists with graduate degrees from top-rated universities.  

As detailed below, the potential return-on-investment result is +3.0% absolute return-on-investment in 15 days (equivalent to a +72.5% annualized return-on-investment).  

AppLovin Corporation (APP) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
8/6/2026 Bought 100 shares of AppLovin stock @ $335.02 per share.  
8/6/2026 Sold 1 AppLovin August 21st $310.00 Call option @ $34.00 per share.
Note: The Implied Volatility of the Call option was 70.2% when this transaction was executed which, as preferred, substantially exceeds the current 15.6 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $30,102.67
= ($335.02 - $34.00) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$3,399.33
= ($34.00 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If AppLovin stock is above the $310.00 strike price at the 8/21/2026 options expiration date): -$2,502.00
= ($310.00 strike price - $335.02 stock purchase price) * 100 shares

Total Net Profit Potential: +$897.33
= (+$3,399.33 option income + $0.00 dividend income - $2,502.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.0%
= +$897.33/$30,102.67
Potential Equivalent Annualized Return-on-Investment: +72.5%
= (+$897.33/$30,102.67) * (365/15 days)

Established Covered Call Position in Expand Energy Corporation

This afternoon a small Covered Call position was established in Expand Energy Corporation (ticker EXE) using my Dividend Capture Strategy. My net debit limit order at the August 21st, 2026 $90.00 strike price was executed when one Expand Energy Call option was sold at $2.66 and 100 shares were bought simultaneously at $91.26 per share. The net debit was $88.60 per share and the Call option's time value profit potential was $1.40 [$2.66 option price - ($91.26 stock price - $90.00 strike price)].  The probability that the Call will be in-the-money (i.e. above the $90.00 strike price) on the 8/21/2026 options expiration date was 59.4% when this position was established. There is an intervening ex-dividend of $.575 per share (2.5% annual dividend yield) on August 13th which is included in the potential return-on-investment results detailed below.

Expand Energy Corp. is the largest independent natural gas producer in North America, focused on acquiring, developing, and producing natural gas, oil, and natural gas liquids from premier U.S. shale basins, with revenues generated through commodity sales and increasingly through marketing and logistics capabilities. Its business model emphasizes low-cost production, disciplined capital allocation, operational efficiency, and proximity to LNG export infrastructure to maximize long-term free cash flow and shareholder returns. It holds a leading competitive position in the U.S. natural gas industry following the merger of Chesapeake Energy and Southwestern Energy, giving it unmatched scale, high-quality acreage in the Haynesville and Appalachian basins, and one of the industry's deepest drilling inventories. While it competes with major producers such as EQT, Antero Resources, and Comstock Resources, its size, low-cost asset base, growing gas marketing capabilities, and strategic exposure to rising LNG exports position it as one of the industry's strongest long-term competitors.  

There are 26 analysts covering Expand Energy Corp. and their average target price is $127.36 which is +39.6% above today's purchase price.  Also, LSEG Stock Reports Plus has their highest Average Score of 10 and an Optimized Score of 10 (on a scale of 1 to 10).

As detailed below, two potential return-on-investment results are: (1) +1.6% absolute return-on-investment (equivalent to a +72.1% annualized return-on-investment in 8 days if the Call option is exercised and the stock is therefore assigned on the last business day prior to the August 13th ex-dividend date; and (2) +2.2% absolute return-on-investment (equivalent to a +50.8% annualized return-on-investment in 16 days if the Expand Energy stock is in-the-money and the stock is assigned on its August 21st, 2026 options expiration date.

Expand Energy Corporation (EXE) -- New Covered Call Position
The Buy/Write transaction was as follows:
8/5/2026 Bought 100 shares of Expand Energy Corp. stock @ $91.26 per share.  
8/5/2026 Sold 1 Expand Energy August 21st, 2026 $90.00 Call option @ $2.66 per share.  The Implied Volatility of the Call option was 26.6 which, as preferred, is well above the current 15.5 of VIX.
8/13/2026 Upcoming ex-dividend of $.575 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Call Position Net Investment: $8,860.67
= ($91.26 - $2.66) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$266.00
= ($2.66 * 100 shares)
(b) Dividend Income (If option exercised early on Aug. 12th, the last business day prior to the August 13th ex-div date): +$0.00; or
(b) Dividend Income (If Expand Energy stock assigned at the Aug 21st, 2026 expiration): $57.50
= ($.575 dividend per share x 100 shares)
(c) Capital Appreciation (If Expand Energy Call option is assigned early on August 12th): -$126.00
+($90.00 strike price - $91.26 stock price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at the $90.00 strike price at the Aug. 21st options expiration): -$126.00
+($90.00 - $91.26) * 100 shares

1. Total Net Profit [If option exercised early on the last business day prior to the August 13th ex-dividend date)]: +$140.00

= (+$266.00 option income +$0.00 dividend income -$126.00 capital appreciation); or

2. Total Net Profit (If stock shares assigned at the $90.00 strike price at the Aug. 21st, 2026 expiration): +$197.50

= (+$266.00 option income + $57.50 dividend income - $126.00 capital appreciation)

1. Absolute Return-on-Investment (If option exercised early on August 13th): +1.6%

= +$140.00/$8,860.67

Annualized Return-on-Investment: +72.1%

= (+$140.00/$8,860.67) * (365/8 days); or

2. Absolute Return-on-Investment (If Expand Energy shares assigned at the $90.00 strike price and at the August 21st, 2026 options expiration date): +2.2%

= +$197.50/$8,860.67

Annualized Return-on-Investment (If shares assigned at the 8/21/2026 options expiration date): +50.8%

= (+$197.50/$8,860.67) * (365/16 days)

Covered Calls Position Established in Deckers Outdoor Corporation

This afternoon a buy/write net debit limit order was executed and 200 shares of Deckers Outdoor Corporation (ticker symbol DECK) stock were purchased at $99.58 and 2 August 21st, 2026 $95.00 Call options were sold at $6.26 per share -- a net debit of $93.32 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 $1.68 per share [$6.26 Call options premium - ($99.58 stock purchase price - $95.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 73.4% when this order was transacted. As preferred, the next quarterly earnings report on October 22nd, 2026 is after the August 21st options expiration date.  

Deckers is a branded footwear and apparel company that designs, markets, and distributes premium products under its flagship HOKA, UGG, and Teva brands, while outsourcing manufacturing and selling through both wholesale partners and its own direct-to-consumer e-commerce and retail channels. Its business model emphasizes brand development, product innovation, premium pricing, and a growing direct-to-consumer mix, which supports industry-leading gross margins and strong customer loyalty. Deckers currently holds one of the strongest competitive positions in the global premium footwear industry, driven by the rapid growth of HOKA in performance running and the enduring strength of UGG in lifestyle footwear, while Teva provides additional exposure to the outdoor category. Although it competes against much larger companies such as Nike, Adidas, and On Holding, Deckers has consistently gained market share through differentiated products, disciplined brand management, and strong profitability, making it one of the industry's highest-margin footwear companies.

Deckers passed all 25 criteria in my Quality + Growth stock screener:

As detailed below, a potential outcome for this Deckers investment is +1.8% absolute return-on-investment for the next 17 days (equivalent to +38.5% annualized-return-on-investment) if the stock closes above the $95.00 strike price on the August 21st, 2026 options expiration date.

Deckers Outdoor Corporation (DECK) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
8/4/2026 Bought 200 shares of Deckers Outdoor Corp. stock @ $99.58 per share.  
8/4/2026 Sold 2 DECK August 21st, 2026 $95.00 Call options @ $6.26 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 38.1 when this position was established which, as preferred, is well above the current VIX of 15.8.  

A possible overall performance result (including commissions) if this position is assigned on its 8/21/2026 options expiration date is as follows:
Covered Calls Net Investment: $18,665.34
= ($99.58 - $6.26) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,250.66
= ($6.26 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Deckers stock is above the $95.00 strike price at the 8/21/2026 options expiration date): -$916.00
= ($95.00 - $99.58) * 200 shares

Potential Total Net Profit (If assigned at expiration): +$334.66
= (+$1,250.66 options income + $0.00 dividend income - $916.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.8%
= +$334.66/$18,665.34
Potential Equivalent Annualized-Return-on-Investment: +38.5%
= (+$334.66/$18,665.34) * (365/17 days)

July 31st, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with July 31st, 2026 options expirations and both positions (Alphabet Corporation and Uber Technologies Inc.) were in-the-money (and therefore assigned) yesterday so they were closed out at their respective strike prices.  The return-on-investment summary for each position is as follows:

1. Alphabet Corporation (GOOGL) -- +0.9% absolute return-on-investment (equivalent to +40.0% annualized return-on-investment) for the 8 days of this investment.  This Alphabet Covered Call position had a $305.00 strike price and it closed yesterday at $356.13.  The original blog post showing the details of this position is here. 

2. Uber Technologies Inc. (UBER) -- +1.7% absolute return-on-investment (equivalent to +37.9% annualized return-on-investment) for the 16 days of this investment.  This Uber Covered Calls position had a $70.00 strike price and it closed at $70.36 yesterday.  The original blog post showing the details of this position is here.

Send your questions/comments to the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Call Position in D.R. Horton Inc.

This afternoon my Covered Call net debit limit order was entered and soon thereafter executed in D.R. Horton Inc. (ticker DHI) with a short-term August 14th, 2026 options expiration date.  One D.R. Horton Call option was sold at $7.99 at the $140.00 strike price when the stock price was $145.89 -- the net debit was $137.90 per share and the Call option's time value profit potential was $2.10 [$7.99 option price - ($145.89 stock price - $140.00 strike price)].  The probability that the Call will be in-the-money (i.e. above the $140.00 strike price) on the 814/2026 options expiration date was 69.4% when this position was established. There is an intervening ex-dividend of $.45 per share (1.2% annual dividend yield) on August 6th which is included in the potential return-on-investment results detailed below.

D.R. Horton is the largest homebuilder in America by market cap. Importantly, it is considered the best-in-class operator in its industry and has the highest exposure to the critically important entry-level buyers (67% of closings), lowest debt leverage, and least on-balance sheet land risk.  Although homebuilders' business has been stagnant during the past 3 years, home buyers' demand is strong but constricted by the current high mortgage interest rates.  Just yesterday the 30-year treasury bond yield hit an intraday high above 5.20% which was last seen two decades ago.  Whenever these rates begin to reverse (especially if below 4.5%), homebuilders' financials will begin to improve.  In the meantime, D.R. Horton will continue to manage their business wisely and profitably.  

As detailed below, two potential return-on-investment results are: (1) +1.3% absolute return-on-investment (equivalent to a +67.3% annualized return-on-investment in 7 days if the Call option is exercised and the stock is therefore assigned on the last business day prior to the August 6th ex-dividend date; and (2) +1.6% absolute return-on-investment (equivalent to a +39.4% annualized return-on-investment in 15 days if the DHI stock is in-the-money and the stock is assigned on its August 14th, 2026 options expiration date.

D.R. Horton Inc. (DHI) -- New Covered Call Position
The Buy/Write transaction was as follows:
7/30/2026 Bought 100 shares of D.R. Horton Inc. stock @ $145.89 per share.  
7/30/2026 Sold 1 D.R. Horton August 14th, 2026 $140.00 Call option @ $7.99 per share.  The Implied Volatility of the Call option was 35.8 which, as preferred, is well above the current 17.1 of VIX.
8/6/2026 Upcoming ex-dividend of $.45 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Call Position Net Investment: $13,787.67
= ($145.89 - $7.99) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$767.00
= ($7.67 * 100 shares)
(b) Dividend Income (If option exercised early on Aug. 5th, the last business day prior to the August 6th ex-div date): +$0.00; or
(b) Dividend Income (If DHI stock assigned at the Aug 14th, 2026 expiration): $45.00
= ($.45 dividend per share x 100 shares)
(c) Capital Appreciation (If D.R. Horton Call option is assigned early on August 6th): -$589.00
+($140.00 strike price - $145.89 stock price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $140.00 strike price at the Aug. 14th options expiration): -$589.00
+($140.00 - $145.89) * 100 shares

1. Total Net Profit [If option exercised early on the last business day prior to the August 6th ex-dividend date)]: +$178.00

= (+$767.00 option income +$0.00 dividend income -$589.00 capital appreciation); or

2. Total Net Profit (If stock shares assigned at $140.00 strike price at the Aug. 14th, 2026 expiration): +$223.00

= (+$767.00 option income + $45.00 dividend income - $589.00 capital appreciation)

1. Absolute Return-on-Investment (If option exercised early on August 5th): +1.3%

= +$178.00/$13,787.67

Annualized Return-on-Investment: +67.3%

= (+$178.00/$13,787.67) * (365/7 days); or

2. Absolute Return-on-Investment (If D.R. Horton shares assigned at $140.00 at the August 14th, 2026 options expiration date): +1.6%

= +$223.00/$13,787.67

Annualized Return-on-Investment (If shares assigned at the 8/14/2026 options expiration date): +39.4%

= (+$223.00/$13,787.67) * (365/15 days)

Established Covered Call in NVIDIA Corporation

A Covered Call position of 16 days duration was established today in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $183.30 was executed and the time value (aka extrinsic value) was $6.70 per share [$7.72 Call option premium - ($191.02 stock purchase price - $190.00 strike price)].  A slightly in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $190.00 strike price) on the 8/14/2026 options expiration date was 51.3% when this transaction was executed.  NVIDIA's next earnings report is on 8/26 which, as preferred, is after the 8/14 expiration date.  But the Implied Volatility of the Call option sold was high at 44.0 given the uncertainty of the four megacap companies reporting earnings this week (Meta, Microsoft, Amazon, and Apple) and their commentary about their capital expenditures -- which will also influence NVIDIA's stock price reaction.  I'm optimistic the four will continue their large capex spending plans given Alphabet's increase in capex plans communicated during their recent earnings report.   

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $190.00 strike price) and therefore assigned on its August 14th, 2026 options expiration date is +3.7% absolute return-on-investment (equivalent to +83.3% annualized return-on-investment for the next 16 days).  This very high potential roi result stems from both the close to at-the-money strike price selected as well as the high Implied Volatility of the Call option sold.

NVIDIA Corporation (NVDA) -- New Covered Call Position

The buy/write net limit order transaction was as follows:
7/29/2026 Bought 100 NVIDIA Corporation shares at $191.02.  Note: NVIDIA's stock price was very oversold this morning when this transaction was executed -- the RSI(2) was only 5.5.

7/29/2026 Sold 1 NVIDIA 8/14/2026 $190.00 Call option @ $7.72 per share.  The Implied Volatility of this Call was 44.0 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 19.8.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $18,330.67
= ($191.02 - $7.72) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$771.33
= ($7.72 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $190.00 strike price) on the 8/14/2026 options expiration date): -$102.00
+($190.00 strike price - $191.02 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares are in-the money and therefore assigned at the $190.00 strike price on the 8/14/2026 options expiration date): +$669.33

= (+$771.33 option income + $0.00 dividend income - $102.00 capital appreciation)

Potential Absolute Return-on-Investment (If 100 NVIDIA shares assigned (i.e. sold) at the $190.00 strike price on the 8/14/2026 options expiration date): +3.7%

= (+$669.33/$18,330.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $190.00 strike price on the 8/14/2026 options expiration date): +83.3%
= (+$669.33/$18,330.67) * (365/16 days)

Established Covered Calls Position in IBM Corporation

Today a Covered Calls position was established in IBM Corp. (ticker symbol IBM) when the Covered Calls Advisor's buy/write limit order was executed -- 200 shares were purchased at $217.67 and two August 21st, 2026 Call options were sold at $16.65 per share at the $205.00 strike price.  Therefore, a net debit price of $201.02 which is a time value of $3.98 per share [$16.65 Call options price - ($217.67 stock price - $205.00 strike price)].  This is a moderately in-the-money position since its probability of closing in-the-money on the 8/21/2026 options expiration date was 69.6% when this position was established.  

Two potential return-on-investment results for this position are highlighted below and includes the possibility of early assignment since a quarterly ex-dividend of $1.69 per share (3.2% annualized dividend yield) goes ex-dividend on August 10th which is prior to the August 21st options expiration date.  Either result would be attractive since they both substantially exceed my preferred minimum annualized return-on-investment criteria when using my Dividend Capture Strategy.  Also, as I prefer, there is no intervening quarterly earnings report since IBM's next quarterly earnings report on October 28th, 2026 is after the options expiration date for this position. Finally, IBM passed every criterion in my "Overall Rating Versus Peers" stock screener.  

As detailed below, two potential return-on-investment results are: 

•  +2.0% absolute return (equivalent to +51.5% annualized return for the next 14 days) if the stock is assigned early (business day prior to the August 10th ex-dividend date); OR 

• +2.8% absolute return (equivalent to +41.1% annualized return over the next 25 days) if the stock is assigned on the August 21st, 2026 options expiration date.

IBM Corporation (IBM) -- New Covered Calls Position
The buy/write transaction was:
7/27/2026 Bought 200 IBM shares @ $217.67
7/27/2026 Sold 2 IBM 8/21/2026 $205.00 Call options @ $16.65  The Implied Volatility of the Calls was 40.4 when this transaction occurred, well above the current VIX of 19.2.
8/10/2026 Upcoming quarterly ex-dividend of $1.69 per share

Two possible overall performance results (including commissions) for this IBM Covered Calls position are as follows:
Covered Calls Net Investment: $40,205.34
= ($217.67 - $16.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$3,328.66
= ($16.65 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on August 7th, the last business day prior to the August 10th ex-div date): +$0.00; or
(b) Dividend Income (If IBM stock assigned at the August 21st, 2026 options expiration date): +$338.00
= ($1.69 dividend per share x 200 shares)
(c) Capital Appreciation (If IBM Call options assigned early): -$2,534.00
+($205.00 strike price - $217.67 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $205.00 strike price at options expiration): -$2,534.00 = +($205.00 - $217.67) * 200 shares

1. Total Net Profit [If options exercised early]: +$794.66

= (+$3,328.66 options income +$0.00 dividend income -$2,534.00 capital appreciation); or

2. Total Net Profit (If IBM shares assigned at $205.00 at the August 21st expiration): +$1,132.66

= (+$3,328.66 options income +$338.00 dividend income -$2,534.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised early on August 7th (last business day prior to the 8/10/2026 ex-dividend date)]: +2.0%

= +$794.66/$40,205.34

Annualized Return-on-Investment (If option exercised early): +51.5%

= (+$794.66/$40,205.34) * (365/14 days); or

2. Absolute Return-on-Investment (If IBM shares assigned at $205.00 at the Augus 21st, 2026 options expiration): +2.8%

= +$1,132.66/$40,205.34

Annualized Return-on-Investment (If IBM shares assigned at $205.00 at the August 21st options expiration date): +41.1%

= (+$1,132.66/$40,205.34) * (365/25 days)

July 24th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with July 24th, 2026 options expirations and both positions (IBM Corporation and NVIDIA Corporation) were assigned yesterday so they were closed out at their respective strike prices.  The return-on-investment summary for each position is as follows:

1. IBM Corporation (IBM) -- +1.6% absolute return-on-investment (equivalent to +71.7% annualized return-on-investment) for the 8 days of this investment.  This IBM Covered Call position had a $200.00 strike price and it closed at $214.19 yesterday.  The original blog post showing the details of this position is here. 

2. NVIDIA Corporation (NVDA) -- +2.3% absolute return-on-investment (equivalent to +84.3% annualized return-on-investment) for the 10 days of this investment.  This NVIDIA Covered Calls position had a $202.50 strike price and it closed at $206.84 yesterday.  The original blog post showing the details of this position is here.

There are two primary reasons why these annualized returns are so high: (1) these were short-term (i.e. 8 days and 10 days duration), and the rate of time value decay in the price of options increases (so the potential annualized roi normally also increases) as the duration of the initial position decreases; and (2) both positions also benefited from temporary upward spikes in the Implied Volatility of the Calls when the positions were established.  The IBM position was established on the day after it reported disappointing earnings and the stock was plummeting by an intraday record of more than 25%.  The NVIDIA position was established when its prior day closing price was $212.50 and the stock was purchased the following day when the price had declined to $207.61.

Send your questions/comments to the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Call Position Established in Alphabet Inc.

Late this morning a new short-term Covered Call net debit buy/write limit order was established in Alphabet Inc. (ticker GOOGL) for the July 31st, 2026 expiration and at the $305.00 strike price.  The stock price declined by over 7% this morning after yesterday afternoon's quarterly earnings results.  Investors reacted negatively to the increased capex plan for this year and the negative free cash flow for this quarter. The order was placed at a $302.34 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $2.66 per share [$15.30 Call option premium - ($317.64 stock purchase price - $305.00 strike price)].  The probability that this position will be in-the-money and therefore assigned on its options expiration date was 76.1% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 8 days (equivalent to a +40.0% annualized return-on-investment).  

Alphabet Inc. (GOOGL) -- New Covered Calls Position

The simultaneous buy/write transaction was as follows:
7/23/2026 Bought 100 shares of Alphabet Inc. stock @ $317.64 per share.  
7/23/2026 Sold 1 Alphabet Inc. July 31st $305.00 Call option @ $15.30 per share.
Note: The Implied Volatility of the Call options was 37.4 when this transaction was executed which, as I prefer, is well above the current 19.0 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $30,234.67
= ($317.64 - $15.30) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,529.33
= ($15.30 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $305.00 strike price at the 7/31/2026 options expiration date): -$1,264.00
= ($305.00 strike price - $317.64 stock purchase price) * 100 shares

Total Net Profit Potential: +$265.33
= (+$1,529.33 option income +$0.00 dividend income - $1,264.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$265.33/$30,234.67
Potential Equivalent Annualized Return-on-Investment: +40.0%
= (+$265.33/$30,234.67) * (365/8 days)

Established Covered Calls in IAMGOLD Corporation

A Covered Calls position of 32 days duration was established yesterday in IAMGOLD Corporation (ticker IAG).  My buy/write net debit limit order at $13.00 was executed and the time value was $1.00 per share [$1.10 Call options premium - ($14.10 stock purchase price - $14.00 strike price)].  An in-the-money strike price was established with the probability that IAMGOLD's stock will close in-the-money (i.e. above the $14.00 strike price) on the 8/21/2026 options expiration date was 48.4% when this transaction was executed.  

IAMGOLD Corporation (NYSE: IAG, TSX: IMG) is a Canada-based intermediate gold producer with mines in Canada (Côté Gold, Westwood) and Burkina Faso (Essakane), plus exploration projects like Nelligan in Quebec. Its flagship Côté Gold, run in a 70/30 partnership with Sumitomo Metal Mining, is among Canada's largest producing gold mines and drives growth beyond typical mid-tier peers. Geographic diversification spreads jurisdictional risk while strong Q1 2026 results (~$1.03B revenue, $525M free cash flow) reflect high leverage to gold prices. Competitively, low all-in sustaining costs, disciplined capital allocation, and shareholder returns support its position, though West African exposure and development execution risk remain factors.

IAMGOLD has an intervening quarterly earnings report on August 6th but given the associated very high Implied Volatility of 62.2% as well as the likelihood of a strong report given that spot gold is now 20% higher than at this time last year and IAMGOLD's positive production growth prospects, I am confident in this investment.  Its stock passed all criteria on three of my stock screeners (Acquirers Multiple, Energy and Materials Sectors, and Quality+Value+Growth).  Also, the 9 analysts now following IAMGOLD have an average 1-year target price of $26.13 (+85.3% above the stock purchase price) and LSEG Stock Reports Plus rates it as a 9 for both its Average Score and Optimized Score (on a scale of 1 to 10).   

As detailed below, a potential return-on-investment result if IAMGOLD's share price is in-the-money (i.e. above the $14.00 strike price) and therefore assigned on its August 21st, 2026 options expiration date is +7.6% absolute return-on-investment (equivalent to +87.1% annualized return-on-investment for the next 32 days).

IAMGOLD Corporation (IAG) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/20/2026 Bought 600 IAMGOLD Corporation shares at $14.10.

7/20/2026 Sold 6 IAMGOLD 8/21/2026 $14.00 monthly Call options @ $1.10 per share.  The Implied Volatility of these Calls was 62.2% when this position was established.  

A possible overall performance result (including commissions) for this IAMGOLD Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $7,804.02
= ($14.10 - $1.10) * 600 shares + $4.02 commission

Net Profit:
(a) Options Income: +$655.98
= ($1.10 * 600 shares) - $4.02 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 600 IAMGOLD shares assigned (i.e. above the $14.00 strike price) on the 8/21/2026 options expiration date): -$60.00
+($14.00 strike price - $14.10 stock purchase price) * 600 shares

Total Net Profit Potential (If 600 IAG shares assigned at the $14.00 strike price on the 8/21/2026 options expiration date): +$595.98

= (+$655.98 options income + $0.00 dividend income - $60.00 capital appreciation)

Potential Absolute Return-on-Investment (If 600 IAMGOLD shares assigned (i.e. sold) at the $14.00 strike price on the 8/21/2026 options expiration date): +7.6%

= (+$595.98/$7,804.02)

Potential Annualized Return-on-Investment (If 600 IAMGOLD shares assigned at the $14.00 strike price on the 8/21/2026 options expiration date): +87.1%
= (+$595.98/$7,804.02) * (365/32 days)

July 17th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had one Covered Call position with a July 17th, 2026 options expiration date.  The position in NVIDIA Corporation closed in-the-money at $202.81 so the Call option expired and the 200 shares were called away (i.e. sold) at the $187.50 strike price.  A summary of results for this position is as follows:

NVIDIA Corporation (NVDA) -- +1.6% absolute return (equivalent to +38.9% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $187.50 strike price since the stock closed in-the-money at $202.81 per share.  The original blog post detailing this Covered Call position is here. 

Email me at the address shown below with any questions or comments on anything related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls in NVIDIA Corporation

A short-term Covered Calls position of 8 days duration was established today in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $199.36 was executed and the time value was $3.14 per share [$8.25 Call options premium - ($207.61 stock purchase price - $202.50 strike price)].  An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $202.50 strike price) on the 7/24/2026 options expiration date was 64.5% when this transaction was executed.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $202.50 strike price) and therefore assigned on its July 24th, 2026 options expiration date is +1.6% absolute return-on-investment (equivalent to +71.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/16/2026 Bought 200 NVIDIA Corporation shares at $207.61.

7/16/2026 Sold 2 NVIDIA 7/24/2026 $202.50 Call options @ $8.25 per share.  The Implied Volatility of these Calls was 42.5 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 16.3.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $39,873.34
= ($207.61 - $8.25) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,648.66
= ($8.25 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $202.50 strike price) on the 7/24/2026 options expiration date): -$1,022.00
+($202.50 strike price - $207.61 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $202.50 strike price on the 7/24/2026 options expiration date): +$626.66

= (+$1,648.66 options income + $0.00 dividend income - $1,022.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $202.50 strike price on the 7/24/2026 options expiration date): +1.6%

= (+$626.66/$39,873.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +71.7%
= (+$626.66/$39,873.34) * (365/8 days)

Covered Calls Position Established in Uber Technologies Inc.

This afternoon a buy/write net debit limit order was executed and 300 shares of Uber Technologies Inc.(ticker symbol UBER) stock were purchased at $72.97 and 3 July 31st, 2026 $70.00 Call options were sold at $4.12 per share -- a net debit of $68.85 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 $1.15 per share [$4.12 Call options premium - ($72.97 stock purchase price - $70.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 68.6% when this order was transacted. As preferred, the next quarterly earnings report on August 5th, 2026 is after the July 31st options expiration date.  Uber passed all criteria in my Key Metrics stock screener:

As detailed below, a potential outcome for this Uber Technologies investment is +1.7% absolute return-on-investment for the next 16 days (equivalent to +37.9% annualized-return-on-investment) if the stock closes above the $70.00 strike price on the July 31st, 2026 options expiration date.

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

The net debit buy/write limit order was executed as follows:
7/15/2026 Bought 300 shares of Uber Technologies Inc. stock @ $72.97 per share.  
7/15/2026 Sold 3 Uber July 31st, 2026 $70.00 Call options @ $4.12 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 38.6 when this position was established which, as preferred, is well above the current VIX of 15.9.  

A possible overall performance result (including commissions) if this position is assigned on its 7/31/2026 options expiration date is as follows:
Covered Calls Net Investment: $20,657.01
= ($72.97 - $4.12) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,233.99
= ($4.12 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $70.00 strike price at the 7/31/2026 options expiration date): -$891.00
= ($70.00 - $72.97) * 300 shares

Potential Total Net Profit (If assigned at expiration): +$342.99
= (+$1,233.99 options income + $0.00 dividend income - $891.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.7%
= +$342.99/$20,657.01
Potential Equivalent Annualized-Return-on-Investment: +37.9%
= (+$342.99/$20,657.01) * (365/16 days)

Covered Call Position Established in IBM Corporation

Today a short-term Covered Call position in IBM Corporation (IBM) was established when one hundred shares were purchased at $217.68 and one July 24th, 2026 Call option was sold at $22.20 per share at the $200.00 strike price.  The buy/write net debit limit order at $195.48 was executed, so the time value was $4.52 per share [$22.20 Call option premium - ($217.68 stock purchase price - $200.00 strike price)].  An in-the-money Covered Call position was established with a 71.0% probability of assignment on the options expiration date when this buy/write limit order was executed. IBM stock was down an intraday record of over 25% this morning after they pre-announced disappointing quarterly revenues and earnings.  I took advantage of the upward spike in implied volatility to 81.7 in the 7/24 $200 Call option and established this IBM Covered Call position.

As detailed below, a potential return-on-investment result is +2.3% absolute return-on-investment (equivalent to +84.3% annualized return-on-investment over the next 10 days) if the stock is assigned on the July 24th, 2026 options expiration date.

IBM Corporation (IBM) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
7/14/2026 Bought 100 IBM Corp. shares @ $217.68
7/14/2026 Sold 1 IBM 7/24/2026 $200.00 Call option @ $22.20 per share
Note: the Implied Volatility of the Call was 81.7 when this transaction was executed.  As I prefer, this value greatly exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 16.3.

A possible overall performance result (including commission) for this IBM Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $19,548.67
= ($217.68 - $22.20) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$2,219.33
= ($22.20 * 100 shares) - $.67 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If IBM shares assigned at the $200.00 strike price on the options expiration date): -$1,768.00
+($200.00 strike price - $217.68 stock purchase price) * 100 shares

Total Net Profit (If IBM shares assigned at the $200.00 strike price at the 7/24/2026 expiration date): +$451.33

= (+$2,219.33 option income + $0.00 - $1,768.00 capital appreciation)

Absolute Return-on-Investment (If IBM shares assigned at the $200.00 strike price on the July 24th, 2026 options expiration date): +2.3%

= +$451.33/$19,548.67

Annualized Return-on-Investment (If IBM stock assigned at the $200.00 strike at the 7/24/2026 options expiration date): +84.3%

= (+$451.33/$19,548.67) * (365/10 days)

Established Covered Calls in NVIDIA Corporation

A Covered Calls position of 15 days duration was established today in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $184.54 was executed and the time value was $2.96 per share [$11.25 Call options premium - ($195.79 stock purchase price - $187.50 strike price)].  An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $187.50 strike price) on the 7/17/2026 options expiration date was 69.3% when this transaction was executed.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $187.50 strike price) and therefore assigned on its July 17th, 2026 options expiration date is +1.6% absolute return-on-investment (equivalent to +38.9% annualized return-on-investment for the next 15 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/2/2026 Bought 200 NVIDIA Corporation shares at $195.79.

7/2/2026 Sold 2 NVIDIA 7/17/2026 $187.50 Call options @ $11.25 per share.  The Implied Volatility of these Calls was 39.4% when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 16.2.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $36,909.34
= ($195.79 - $11.25) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,248.66
= ($11.25 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $187.50 strike price) on the 7/17/2026 options expiration date): -$1,658.00
+($187.50 strike price - $195.79 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +$590.66

= (+$2,248.66 options income + $0.00 dividend income - $1,658.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $187.50 strike price on the 7/17/2026 options expiration date): +1.6%

= (+$590.66/$36,909.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +38.9%
= (+$590.66/$36,909.34) * (365/15 days)

June 18th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with June 18th, 2026 options expirations and both positions (Insulet Corporation and NVIDIA Corporation) were assigned yesterday so the Call options expired and both Covered Call positions were closed out by selling the stocks at their respective strike prices.  The return-on-investment summary for each position is as follows:

1. Insulet Corporation (PODD) -- +3.0% absolute return-on-investment (equivalent to +49.0% annualized return-on-investment) for the 22 days of this investment.  This Insulet Corp. Covered Call position had a $135.00 strike price and it closed in-the-money at $145.76 yesterday.  The original blog post showing the details of this position is here. 

2. Nvidia Corporation (NVDA) -- +1.9% absolute return-on-investment (equivalent to +61.7% annualized return-on-investment) for the 15 days of this investment.  This NVIDIA Covered Calls position had a $210.00 strike price and it closed in-the-money at $210.69 yesterday.  The original blog post showing the details of this position is here.

Send your questions/comments to the email address shown below on any topics related to the Covered Calls investing strategy.  During my upcoming vacation period, I expect new positions will be more limited than usual and available cash will be maintained in a Schwab Money Market Fund (SWVXX).  However, as always, any new positions I establish will continue to be posted on this blog site when they occur.  

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

June 12th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with June 12th, 2026 options expiration dates.  The position in The Cigna Group closed in-the-money at $298.00 so the Call option expired and the 100 shares were called away (i.e. sold) at the $270.00 strike price.  The other position in Pan American Silver Corporation closed out-of-the-money so the Call option expired and the 300 shares remained in the Covered Calls Advisor Portfolio.  This morning I sold the 300 Pan American shares.  A summary of results for each of these positions is as follows:

1. The Cigna Group (CI) -- +1.7% absolute return (equivalent to +36.3% annualized return-on-investment) for the 17 days of this investment.  This Covered Call position was assigned at the $270.00 strike price since the stock closed in-the-money at $298.00 per share at last Friday's market close.  The original blog post detailing this Covered Call position is here. 

2. Pan American Silver Corporation (PAAS) -- This Covered Call position closed last Friday at $48.14 which was well below its $56.00 strike price, so the three Call option expired and 300 PAAS shares remained in the Covered Calls Advisor Portfolio.  The most recent blog post detailing this position is here.  This morning I sold the 300 shares at $51.935 per share.  The result for this position was -7.1% absolute return (equivalent to -76.6% annualized return-on-investment) for the 34 days of this investment.  

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

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Closed Out Covered Call Position in T-Mobile USA Inc.

Last Friday, the Covered Call position in T-Mobile USA Inc. (ticker TMUS) closed out-of-the-money at $178.10 which was below its $185.00 strike price.  Today I decided to close out the position by selling the 100 shares at a net loss of $343.00.

As detailed below, the return-on-investment results are: -1.9% absolute return-on-investment (equivalent to -48.8% annualized return-on-investment) for the 14 days of this investment.

T-Mobile US, Inc. (TMUS) -- New Covered Call Position

The buy/write transaction was:
5/26/2026 Bought 100 T-Mobile shares @ $188.74.
5/26/2026 Sold 1 T-Mobile 6/5/2026 $185.00 Call option @ $5.59 per share. The Implied Volatility of the Call option was 29.3 when this transaction was executed.
5/29/2026 Ex-dividend of $1.02 per share.
6/5/2026 One T-Mobile Call option closed out-of-the-money, so the Call options expired and 100 T-Mobile shares remained in the Covered Calls Advisor Portfolio.
6/9/2026 Closed out this T-Mobile Covered Call position by selling the 100 shares at $178.70 per share.

The overall performance result (including commission) for this Covered Call position is as follows:
T-Mobile Covered Call Cost Basis: $18,315.67
= ($188.74 - $5.59) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$559.00
= ($5.59 * 100 shares)
(b) Dividend Income: +$102.00
= ($1.02 dividend per share x 100 shares)
(c) Capital Loss (100 shares sold at $178.70 per share): -$1,004.00
+($178.70 stock selling price - $188.74 stock purchase price) * 100 shares

Total Net Loss: -$343.00

= (+$559.00 option income + $102.00 dividend income - $1,004.00 capital appreciation)

Absolute Return-on-Investment: -1.9%

= -$343.00/$18,315.67

Annualized Return-on-Investment: -48.8%

= (-$343.00/$18,315.67) x (365/14 days)

June 5th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with June 5th, 2026 options expiration dates.  The position in NVIDIA Corporation closed slightly in-the-money at $205.10 so the Call option expired and the 100 shares were called away (i.e. sold) at the $205.00 strike price.  The other position in T-Mobile USA Inc. closed out-of-the-money so the Call option expired and the 100 shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions is as follows:

1. NVIDIA Corporation (NVDA) -- +1.5% absolute return (equivalent to +61.7% annualized return-on-investment) for the 8 days of this investment.  This Covered Calls position was assigned at the $205.00 strike price since the stock closed in-the-money at $205.10 per share.  The original blog post detailing this Covered Call position is here. 

2. T-Mobile USA Inc. (TMUS) -- This Covered Call position closed yesterday at $178.10 which was below its $185.00 strike price, so the one Call option expired and 100 T-Mobile 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 one Call option against the 100 T-Mobile shares currently held or close out the position by selling these shares. 

As always, I welcome your feedback or questions 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 Calls in NVIDIA Corporation

A Covered Calls position of 15 days duration was established yesterday in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $206.28 was executed and the time value was $3.72 per share [$13.56 Call options premium - ($219.84 stock purchase price - $210.00 strike price)].  An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $210.00 strike price) on the 6/18/2026 options expiration date was 69.2% when this transaction was executed.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $210.00 strike price) and therefore assigned on its June 18th, 2026 options expiration date is +1.9% absolute return-on-investment (equivalent to +61.7% annualized return-on-investment for the next 15 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
6/3/2026 Bought 200 NVIDIA Corporation shares at $219.84.

6/3/2026 Sold 2 NVIDIA 6/18/2026 $210.00 Call options @ $13.56 per share.  The Implied Volatility of these Calls was 42.4 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX).

6/4/2026 Ex-dividend of $.25 per share.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $41,257.34
= ($219.84 - $13.56) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,710.66
= ($13.56 * 200 shares) - $1.34 commission
(b) Dividend Income: +$50.00 = $.25 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $210.00 strike price) on the 6/18/2026 options expiration date): -$1,968.00
+($210.00 strike price - $219.84 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $210.00 strike price on the 6/18/2026 options expiration date): +$792.56

= (+$2,710.56 options income + $50.00 dividend income - $1,968.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $210.00 strike price on the 6/18/2026 options expiration date): +1.9%

= (+$792.56/$41,257.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $210.00 strike price on the 6/18/2026 options expiration date): +61.7%
= (+$792.56/$41,257.34) * (365/15 days)

May 29th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with May 29th, 2026 options expirations and both positions (IBM Corporation and NVIDIA Corporation) were assigned yesterday so they were closed out at their respective strike prices.  The return-on-investment summary for each position is as follows:

1. IBM Corporation (IBM) -- +3.1% absolute return-on-investment (equivalent to +45.0% annualized return-on-investment) for the 25 days of this investment.  This IBM Covered Call position had a $225.00 strike price and it closed at $297.80 yesterday.  The most recent blog post showing the details of this position is here. 

2. Nvidia Corporation (NVDA) -- +1.2% absolute return-on-investment (equivalent to +53.7% annualized return-on-investment) for the 8 days of this investment.  The owner of these three NVDA Calls exercised their option yesterday to buy the 300 NVIDIA shares despite the stock closing below the $212.50 strike price at $211.14 per share.  The original blog post showing the details of this position is here.

Send your questions/comments to the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Call Position Established in Insulet Corporation

Today a Covered Call position in Insulet Corporation (PODD) was established when one hundred shares were purchased at $144.07 and one June 18th, 2026 Call option was sold at $12.95 per share at the $135.00 strike price.  The buy/write net debit limit order at $131.12 was executed, so the time value was $3.88 per share [$12.95 Call option premium - ($144.07 stock purchase price - $135.00 strike price)].  An in-the-money Covered Calls position was established with a 66.9% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Insulet Corporation makes, sells, and develops its proprietary Omnipod System, an automated insulin pump for insulin-dependent diabetics in the U.S. and Internationally.  Their business operates on a razor-and-blade model centered on its Omnipod system, pairing its low-cost controller (the razor hardware) with its disposable (replaced every 3 days) insulin pods (the consumable blades) that generate recurring, high-margin revenue and strong cash flow visibility. Financially, the company has delivered a decade of consistent high growth, with revenue expanding from under $1B in 2020 to ~$2.7B in 2025 (roughly a 25–30% annual growth rate in recent years), including its 10th consecutive year of 20%+ growth and accelerating ~30% growth in 2025. Profitability has scaled alongside revenue, with gross margins around ~70%+ and operating leverage improving as volumes increase, though near-term earnings can fluctuate due to reinvestment in sales and R&D. Looking forward, management continues to guide to ~20%+ revenue growth with even faster EPS expansion, driven by international expansion, penetration of the large Type 2 diabetes market, and deeper integration with leading automated insulin delivery ecosystems such as Dexcom's G7 and Abbott's FreeStyle Libre. Overall, Insulet offers investors a rare combination of durable recurring revenue, strong historical execution, and a long runway for growth in an underpenetrated global market.

Insulet is highly rated by analysts.  The average target price of the 25 analysts currently covering the company is +81.0% above today's stock purchase price.  In addtion, Morningstar has a 5-star strong buy rating and CFRA a 4-star buy rating.

As detailed below, a potential return-on-investment result is +3.0% absolute return-on-investment (equivalent to +49.0% annualized return-on-investment over the next 22 days) if the stock is assigned on the June 18th, 2026 options expiration date.

Insulet Corporation (PODD) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
5/27/2026 Bought 100 Insulet Corp. shares @ $144.07
5/27/2026 Sold 1 PODD 6/18/2026 $135.00 Call option @ $12.95 per share
Note: the Implied Volatility of the Call was 54.2 when this transaction was executed.  As I prefer, this value greatly exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 16.5.

A possible overall performance result (including commission) for this Insulet Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $13,112.67
= ($144.07 - $12.95) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,294.33
= ($12.95 * 100 shares) - $.67 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If Insulet shares assigned at the $135.00 strike price on the options expiration date): -$907.00
+($135.00 strike price - $144.07 stock purchase price) * 100 shares

Total Net Profit (If Insulet shares assigned at the $135.00 strike price at the 6/18/2026 expiration date): +$387.33

= (+$1,294.33 option income + $0.00 - $907.00 capital appreciation)

Absolute Return-on-Investment (If PODD shares assigned at the $135.00 strike price on the June 18th, 2026 options expiration date): +3.0%

= +$387.33/$13,112.67

Annualized Return-on-Investment (If Insulet stock assigned at the $135.00 strike at the 6/18/2026 options expiration date): +49.0%

= (+$387.33/$13,112.67) * (365/22 days)