January 30th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with January 30th, 2026 options expiration dates.  Three positions (Amazon.com Inc., Dexcom Inc., and NVIDIA Corporation), closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  One position in Palo Alto Networks Inc. closed out-of-the-money so its Call option 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 +52.7% annualized return-on-investment) for the 10 days of this investment.  This Covered Call position was assigned at the $225.00 strike price since the stock closed in-the-money at $239.30 per share.  The original blog post detailing this Covered Call position is here. 

2. Dexcom Inc. (DXCM) -- +1.8% absolute return (equivalent to +40.2% annualized return-on-investment) for the 16 days of this investment.  This Covered Calls position was assigned at the $66.00 strike price since the stock closed in-the-money at $73.04 per share.  The original blog post detailing this Covered Calls position is here.    

3. NVIDIA Corporation (NVDA) -- +6.8% absolute return (equivalent to +77.5% annualized return-on-investment) for the 32 days of this investment.  This Covered Call position was assigned at the $187.50 strike price since the stock closed in-the-money at $191.13 per share.  The most recent blog post detailing this Covered Call position is here.    

4. Palo Alto Networks Inc. (PANW) -- This Covered Call position closed yesterday at $176.97 which was well below its $185.00 strike price, so the one Call option expired and 100 Palo Alto Network 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 Palo Alto shares currently held or close out the position by selling these shares. 

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 Calls Position in Uber Technologies Inc.

My Uber Technologies Covered Calls position was scheduled to expire today at the $81.00 strike price, and the position was trading slightly out-of-the-money this afternoon when I decided to unwind (i.e. close out) this position. Uber's quarterly earnings report is next Wednesday and I prefer not to maintain positions on the earnings reporting day because of the heightened stock price volatility. So, this afternoon I closed out this Covered Calls position by buying-to-close the 2 UBER January 30th, 2026 Call options at $.03 per share and simultaneouly selling the 200 UBER shares at $80.08. The detailed transactions and return-on-investment results are as follows:

Uber Technologies Inc. (UBER) -- Closed Out this Uber 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.  
1/30/2026 Unwound this Covered Calls position by simultaneously buying-to-close the two  1/30/2026 $81.00 Call options at $.03 per share and selling the 200 Uber shares at $80.08.

The overall performance result (including commissions) 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: +$536.66
= ($2.72 - $.03) * 200 shares - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Uber stock sold at $80.08 per share): -$516.00
= ($80.08 - $82.66 stock purchase price) * 200 shares

Total Net Profit: +$20.66
= (+$536.66 options income + $0.00 dividend income - $516.00 capital appreciation)

Absolute Return-on-Investment: +0.13%
= +$20.66/$15,989.34
Equivalent Annualized-Return-on-Investment: +5.9%
= (+$20.66/$15,989.34) * (365/8 days)

Continuation of Covered Calls Positions in Dell Technologies Inc. and Lowe's Companies Inc.

My Covered Calls positions in Dell Technologies Inc. and Lowe's Companies Inc. both had options expiration dates today.  Both positions were out-of-the-money this afternoon and I decided to continue both Covered Call positions by buying-to-close the Call options expiring today and selling-to-open new Calls against the shares currently held.  For the 200 shares of Dell, I rolled down-and-out from today's $125.00 strike price for one additional week to the February 6th, 2025 $115.00 strike price.  For the 100 shares of Lowe's, I rolled down-and-out from today's $270.00 strike price to the February 13th, 2025 $265.00 strike price.  The detailed transactions for these ongoing Covered Call positions are provided below.

  

1. 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.

1/30/2026 Continued Covered Calls position with a diagonal spread transaction by buying-to-close two 1/30/2026 $125.00 Calls and selling-to-open two 2/6/2026 $115.00 Calls at $2.52 per share when the price of Dell stock was at $114.08.

A possible overall performance result (including commissions) if this Covered Calls position is in-the-money on the 2/6/2026 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: +$3,438.64
= ($8.40 + $3.00 + $3.30 +2.52) * 200 shares - $5.36 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 $115.00 strike price at the February 6th options expiration date): -$4,200.00
= ($115.00 strike price - $136.00 stock purchase price) * 200 shares

Potential Total Net Profit (If in-the-money and therefore assigned at expiration): -$625.36
= (+$3,438.64 options income + $105.00 dividend income - $4,200.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 2/6/2026 options expiration date): -2.5% = -$625.36/$25,521.34

Potential Equivalent Annualized-Return-on-Investment: -15.7%
= (-$625.36/$25,521.34) x (365/57 days)

2. Lowe's Companies Inc. (LOW) -- Continuation of 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.

1/30/2026 Continued Covered Call position with a diagonal spread transaction by buying-to-close one 1/30/2026 $270.00 Call and selling-to-open one 2/13/2026 $265.00 Call at $5.00 per share when the price of Lowe's stock was at $264.31.

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: +$1,364.66
= ($8.66 + $5.00) * 100 shares - $1.34 commission
(b) Dividend Income: +$120.00 = $1.20 per share x 100 shares
= ($1.20 dividend per share x 100 shares)

(c) Capital Appreciation (If shares are in-the-money and therefore assigned at $265.00 strike price at the 2/13/2026 options expiration date): -$1,150.00

+($265.00 strike price - $276.50) * 100 shares

Total Net Profit (If Lowe's shares assigned at the $265.00 strike price at the Feb. 13th, 2026 options expiration date): +$334.66

= (+$1,364.66 option income + $120.00 dividend income - $1,150.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.2%

= +$334.66/$26,784.67

Potential Annualized Return-on-Investment: +16.3%

= (+$334.66/$26,784.67) * (365/28 days)

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 $178.30 was executed by simultaneously purchasing one hundred shares at $188.50 and selling one February 13th, 2026 Call option at the $182.50 strike price at $10.20 per share, which provides a $4.20 per share = [$10.20 Call option premium received - ($188.50 stock purchase price - $182.50 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.  An 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 2/13/2026 options expiration date was 63.0% when this transaction was executed.  As I prefer, the next earnings report on February 25th, 2026 is after the February 13th, 2026 options expiration date. 

As detailed below, a potential return-on-investment result is +2.3% absolute return-on-investment (equivalent to +57.1% annualized return-on-investment for the next 15 days) if NVIDIA's share price is in-the-money (i.e. above the $182.50 strike price) and therefore assigned on its February 13th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
1/29/2026 Bought 100 NVIDIA Corporation shares at $188.50.

1/29/2026 Sold 1 NVIDIA 2/13/2026 $182.50 Call option @ $10.20 per share.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $17,830.67
= ($188.50 - $10.20) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,018.33
= ($10.20 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $182.50 strike price at expiration): -$600.00
+($182.50 strike price - $188.50 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $182.50 strike price at the options expiration date): +$418.33
= (+$1,018.33 option income + $0.00 dividend income - $600.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.3%
= +$418.33/$17,830.67
Potential Annualized Return-on-Investment: +57.1%
= (+$418.33/$17,830.67) * (365/15 days)

Covered Call Position Established in Microsoft Corporation

I was very surprised at the sharp stock price decline this morning in response to Microsoft's Q2 2026 earnings report issued after the market close yesterday.  They had a slight decline in year-over-year increase of +38% in Azure revenue in Q1 2026 (down from +40% in Q1), but the 12% stock price decline today seems to reflect a concern that their spending was above plan since their total company eps increased by 24% over the prior year quarter.  Given these increases along with beating analysts' revenue and eps estimates, today's decline seems excessive to me, so I decided to enter a Covered Call buy/write order at a net debit limit price of $414.90 at the $425.00 strike price and at the February 13th, 2026 options expiration date.  

When transacted today, one hundred Microsoft shares were purchased at $427.80 and 1 February 13th, 2026 $425.00 Call option was sold at $12.90 per share -- a net debit of $416.90 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 $10.10 per share [$12.90 Call option premium - ($427.80 stock purchase price - $425.00 strike price)].  The probability of assignment on the options expiration date was 52.0% when this transaction occurred.

As detailed below, a potential outcome for this Microsoft Corporation investment is +2.4% absolute return-on-investment for the next 15 days (equivalent to +59.2% annualized-return-on-investment) if the stock closes above the $425.00 strike price on the February 13th, 2026 options expiration date.

Microsoft Corporation (MSFT) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
1/29/2026 Bought 100 shares of Microsoft stock @ $427.80 per share.  
1/29/2026 Sold 1 MSFT February 13th, 2026 $425.00 Call option @ $12.90 per share.  The Implied Volatility of the Call was 33.2 when this transaction was executed.

A possible overall performance result (including commissions) if this position is assigned on its 2/13/2026 option expiration date is as follows:
Microsoft Covered Call Net Investment: $41,490.67
= ($427.80 - $12.90) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,289.33
= ($12.90 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Microsoft stock is above the $425.00 strike price at the February 13th options expiration date): -$280.00
= ($425.00 - $427.80) * 100 shares

Potential Total Net Profit (If assigned at expiration): +$1,009.33
= (+$1,289.33 option income + $0.00 dividend income - $280.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.4%
= +$1,009.33/$41,490.67
Potential Equivalent Annualized-Return-on-Investment: +59.2%
= (+$1,009.33/$41,490.67) * (365/15 days)

Established Covered Calls Position in Wells Fargo & Company

This afternoon, a Covered Calls position was established in Wells Fargo & Company (ticker symbol WFC) when my buy/write limit order was executed -- 200 shares were purchased at $87.14 and 2 February 13th, 2026 weekly Call options were sold at $3.82 at the $84.00 strike price.  The corresponding extrinsic value (i.e. time value) was $.98 per share [$3.82 Call options premium - ($87.14 stock purchase price - $84.00 strike price)], all of which will be profit if the stock is assigned (either by early assignment on the day prior to the February 6th ex-dividend date or at the February 13th options expiration date). The Implied Volatility of the Call options was 24.5 which, as desired by the Covered Calls Advisor, is above the current 16.3 of the S&P 500 Volatility Index (i.e. VIX).  Also as preferred, the next earnings report on April 14th, 2026 is well after the options expiration date.

At today's purchase price, the upcoming ex-dividend of $.45 has a 2.0% annualized dividend yield.  So, this short-term (only 16 days until options expiration) position is established to take advantage of the potential to achieve a satisfactory annualized return-on-investment in a position that meets all nine criteria of the Covered Calls Advisor's Dividend Capture Strategy (see table at end of this post).      

Most companies in the Financial Sector (such as Wells Fargo) provide only modest growth prospects, but they often provide good annual dividend yields.  Consequently, the Covered Calls Advisor targets opportunities to use the Dividend Capture Strategy in all Financial Sector Covered Calls positions.  This new Wells Fargo Covered Calls position continues the Covered Calls Advisor's Dividend Capture Strategy of often selling in-the-money monthly Covered Calls for one of six mega-cap U.S. banks (Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo) for each options expiration month: (JPMorgan Chase quarterly for Jan, Apr, July, and Oct options expirations; Citigroup, Morgan Stanley, and/or Wells Fargo for Feb, May, Aug, and Nov options expirations; and Bank of America and/or Goldman Sachs for Mar, Jun, Sep, and Dec options expirations).

The goal of these monthly Covered Calls in these banks is to both provide an opportunity to either: (1) potentially capture the quarterly dividend payment and if the stock price remains above the strike price at options expiration, in which case the maximum possible return-on-investment result on the options expiration date for the position would be achieved; or (2) have the stock assigned early on the day prior to the ex-dividend date in which case the Covered Calls Advisor is often very pleased since the Dividend Capture Strategy criteria are designed such that the annualized return-on-investment for early assignment normally exceeds the Covered Calls Advisor's minimum threshold (as is the case with this Wells Fargo position).  So far, applying this approach has provided attractive annualized return results -- better than would be achieved if Covered Calls positions for these bank stocks were held in the Covered Calls Advisor Portfolio during the other two non-dividend paying months each quarter.  

Two potential return-on-investment results for this position are highlighted below (including the possibility of early assignment since the ex-dividend is prior to the February 14th options expiration date).  Given the Covered Calls Advisor's current Neutral overall market sentiment, a moderately in-the-money Covered Calls position was established with a probability of 74.6% that the stock will be in-the-money, and therefore assigned (i.e. sold), on the February 14th, 2026 options expiration date.  

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

•  +0.8% absolute return (equivalent to +32.8% annualized return-on-investment for the next 9 days) in the event that the stock is assigned early (business day prior to its 2/14/2026 ex-dividend date); OR 

• +1.3% absolute return (equivalent to +30.8% annualized return-on-investment over the next 16 days) if the stock is assigned on the February 14th options expiration date.

Wells Fargo & Company (WFC) -- New Covered Calls Position
The buy/write transaction was:
1/28/2026 Bought 200 Wells Fargo shares @ $87.14
1/28/2026 Sold 2 Wells Fargo 2/13/2026 $84.00 Call options @ $3.82
2/6/2026 Upcoming quarterly ex-dividend of $.45 per share

Two possible overall performance results (including commissions) for this Wells Fargo Covered Calls position are as follows:
Covered Calls Net Investment: $16,665.34
= ($87.14 - $3.82) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$762.66
= ($3.82 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on February 5th, the day prior to the February 6th ex-div date): +$0.00; or
(b) Dividend Income (If Wells Fargo stock assigned at the February 13th, 2026 options expiration; so the $.45 dividend is captured): +$90.00
= ($.45 dividend per share x 200 shares)

(c) Capital Appreciation (If Wells Fargo Call options assigned early on February 6th, 2026): -$628.00
+($84.00 strike price - $87.14 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $84.00 strike price at options expiration): -$628.00
+($84.00 - $87.14) * 200 shares

1. Total Net Profit [If option exercised on 2/5/2026 (business day prior to the 2/6/2026 ex-dividend date)]: +$134.66

= (+$762.66 options income + $0.00 dividend income - $628.00 capital appreciation); or

2. Total Net Profit (If Wells Fargo shares assigned at $84.00 at the 2/13/2026 expiration): +$224.66

= (+$762.66 options income + $90.00 dividend income - $628.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised early on 2/6/2026]: +0.8%

= +$134.66/$16,665.34

Annualized Return-on-Investment (If option exercised early): +32.8%

= (+$134.66/$16,665.34) * (365/9 days); or

2. Absolute Return-on-Investment (If Wells Fargo shares assigned at $84.00 at the 2/13/2026 options expiration): +1.3%

= +$224.66/$16,665.34

Annualized Return-on-Investment (If Wells Fargo shares assigned at $84.00 at the 2/13/2026 options expiration date): +30.8%

= (+$224.66/$16,665.34) * (365/16 days)

Either outcome provides a good return-on-investment result for this Wells Fargo investment.  These returns will be achieved as long as the stock is above the $84.00 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $82.87 ($87.14 - $3.82 - $.45) provides a 4.9% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this Wells Fargo position, all nine criteria are met.

Continuation of Covered Calls Positions in Sea Limited ADR and Universal Health Services Inc.

My Covered Calls positions in Sea Limited ADR (ticker SE) and Universal Health Services Inc. (ticker UHS) closed out-of-the-money on their options expiration dates, so the Call options expired and the shares remained in the Covered Calls Advisor Portfolio.  This morning, I decided to continue both of these Covered Calls positions by selling Call options against the shares currently held.  The transactions-to-date for these positions as well as the potential return-on-investment results if these positions are in-the-money and therefore assigned on their respective options expiration dates are as follows:

1. Sea Limited ADR (SE) -- Rolled Out this 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.
1/23/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
1/27/2025 Continued Covered Calls position by selling-to-open two 2/6/2026 $127.00 Calls at $3.30 per share when the price of Sea Ltd. stock was at $125.41.

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 $127.00 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: +$3,549.97
= ($9.65 + $2.38 - $4.25 + $6.70 + $3.30) * 200 shares - $6.03 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $127.00 strike price at the 2/6/2026 options expiration date): -$2,030.00
+($127.00 strike price - $137.15 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $127.00 strike price on the 2/6/2026 options expiration date): +$1,519.97

= (+$3,549.97 options income + $0.00 dividend income - $2,030.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $127.00 strike price on the 2/6/2026 options expiration date): +6.0%

= +$1,519.97/$25,501.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $127.00 strike price at the 2/6/2026 options expiration date): +32.5%

= (+$1,519.97/$25,501.34) * (365/67 days)

  

2. Universal Health Services Inc. (UHS) -- Rolled Out this Covered Call Position
The simultaneous buy/write transaction today was as follows:
12/30/2025 Bought 100 Universal Health Services shares @ $225.63
12/30/2025 Sold 1 UHS 1/16/2026 $220.00 Call option @ $8.67 per share
Note: the Implied Volatility of the Call was 28.5 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 14.3.
1/16/2025 One UHS Call expired out-of-the-money, so the 100 shares remained in the Covered Calls Advisor Portfolio.
1/27/2025 Continued Covered Call position by selling-to-open one 2/20/2026 $220.00 Call at $2.80 per share when the price of Univeral Health Services stock was at $212.80.

A possible overall performance result (including commissions) for this Universal Health Services Inc. Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $21,696.67
= ($225.63 - $8.67) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,145.66
= ($8.67 + $2.80) * 100 shares - $1.34 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If Universal Health shares assigned at their $220.00 strike price at options expiration): -$563.00
+($220.00 - $225.63) * 100 shares

Total Net Profit (If Universal Health Services shares assigned at the $220.00 strike price at the 2/20/2026 expiration): +$582.66

= (+$1,145.66 option income + $0.00 dividend income - $563.00 capital appreciation)

Absolute Return-on-Investment (If UHS shares assigned at $220.00 strike price on the Feb. 20th, 2026 options expiration date): +2.7%

= +$582.66/$21,696.67

Annualized Return-on-Investment (If Universal Health Services shares assigned at $220.00 at the 2/20/2026 options expiration date): +18.9%

= (+$303.33/$21,696.67) * (365/52 days)

Established Covered Calls in the D.R. Horton Inc.

This morning my Covered Calls net debit limit order was entered and immediately executed in D.R. Horton Inc. (ticker DHI) with a February 13th, 2026 options expiration date.  Two D.R. Horton Call options were sold at $7.67 at the $145.00 strike price when the stock price was $149.89 -- the net debit was $142.22 per share and the Call options time value profit potential was $2.60 [$7.67 options price - ($149.89 stock price - $145.00 strike price)].  The probability that the Calls will be in-the-money (i.e. above the $145.00 strike price) on the options expiration date was 67.0% when this position was established. There is an intervening ex-dividend of $.45 per share (1.2% annual dividend yield) on February 5th 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. 

As detailed below, two potential return-on-investment results are: (1) +2.0% absolute return-on-investment (equivalent to a +71.3% annualized return-on-investment in 10 days if the Calls are exercised and the stock is therefore assigned on the last business day prior to the February 5th ex-dividend date; and (2) +2.3% absolute return-on-investment (equivalent to a +46.1% annualized return-on-investment in 18 days if the DHI stock is in-the-money and the stock is assigned on its February 13th, 2026 options expiration date.

D.R. Horton Inc. (DHI) -- New Covered Calls Position
The Buy/Write transaction was as follows:
1/26/2026 Bought 200 shares of D.R. Horton Inc. stock @ $149.89 per share.  
1/26/2026 Sold 2 D.R. Horton February 13th, 2026 $145.00 Call options @ $7.67 per share.  The implied volatility of the Call options was 33.6 which, as preferred, is well above the current 16.1 of VIX.
2/5/2026 Upcoming ex-dividend of $.45 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Calls Position Net Investment: $28,445.34
= ($149.89 - $7.67) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,534.00
= ($7.67 * 200 shares)
(b) Dividend Income (If option exercised early on Feb. 4th, the last business day prior to the February 5th ex-div date): +$0.00; or
(b) Dividend Income (If DHI stock assigned at the Feb. 13th, 2026 expiration): $90.00
= ($.45 dividend per share x 200 shares)
(c) Capital Appreciation (If D.R. Horton Call options assigned early on Feb. 5th): -$978.00
+($145.00 strike price - $149.89 stock price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $145.00 strike price at the Feb.13th options expiration): -$978.00
+($145.00 - $149.89) * 200 shares

1. Total Net Profit [If option exercised early on the last business day prior to the Feb. 5th ex-dividend date)]: +$556.00

= (+$1,534.00 options income +$0.00 dividend income -$978.00 capital appreciation); or

2. Total Net Profit (If stock shares assigned at $145.00 strike price at the Feb. 13th, 2026 expiration): +$646.00

= (+$1,534.00 options income +$90.00 dividend income -$978.00 capital appreciation)

1. Absolute Return-on-Investment (If option exercised early on Feb 5th): +2.0%

= +$556.00/$28,445.34

Annualized Return-on-Investment: +71.3%

= (+$556.00/$28,445.34) * (365/10 days); or

2. Absolute Return-on-Investment (If D.R. Horton shares assigned at $145.00 at the Feb. 13th, 2026 options expiration date): +2.3%

= +$646.00/$28,445.34

Annualized Return-on-Investment (If shares assigned at the 2/13/2026 options expiration date): +46.1%

= (+$646.00/$28,445.34) * (365/18 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this D.R. Horton Inc. position, eight of the nine criteria were met.

Closed Covered Call Positions in Microsoft Corporation and ServiceNow Inc.

On the January 16th, 2026 options expiration date, the Covered Call positions in Microsoft Corporation (ticker MSFT) and ServiceNow Inc. (ticker NOW) closed out-of-the-money, so their Call options expired and their shares remained in the Covered Calls Advisor Portfolio. Today I decided to close out both positions at a loss by selling the 100 shares of Microsoft at $470.13 and the 100 shares of ServiceNow at $135.36. Both companies are reporting quarterly earnings this Wednesday after market close and since I prefer not holding stocks during their earnings report, because of the accompanying stock price volatility, I decided to sell out of these positions. The transactions history for these positions and their associated return-on-investment results are detailed below.

 

1. Microsoft Corporation (MSFT) -- Closed Out Covered Call Position

The original 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.  

1/16/2026 This Microsoft Call option expired out-of-the-money at $459.86 per share and the 100 shares remain in the Covered Calls Advisor Portfolio.

1/26/2026 Closed out this Microsoft Covered Call position by selling the 100 shares at $470.13.

The overall performance result (including commissions) for this position 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 (Microsoft stock sold at $470.13 per share): -$5,264.00
= ($470.13 stock selling price - $522.64 stock purchase price) * 100 shares

Total Net Loss: -$1,378.35
= (+$3,794.65 Call option income + $91.00 dividend income - $5,264.00 capital appreciation)

Absolute Return-on-Investment: -2.7%
= -$1,378.35/$50,856.67
Equivalent Annualized-Return-on-Investment: -11.2%
= (-$1,378.35/$50,856.67) * (365/88 days)

2. ServiceNow Inc. (NOW) -- Closed Out Covered Call Position

The original simultaneous buy/write transaction 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.
1/16/2026 This ServiceNow Call option expired out-of-the-money at $127.31 per share and the 100 shares remain in the Covered Calls Advisor Portfolio.
1/26/2026 Closed out this ServiceNow Covered Call position by selling the 100 shares at $135.36.

The overall performance result (including commissions) for this position 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 (ServiceNow stock sold at $135.36 strike price at options expiration): -$1,296.00
+($135.36 strike price - $148.32 stock purchase price) * 100 shares

Total Net Loss (ServiceNow shares sold at $135.36 per share): -$776.67

= (+$519.33 Call option income + $0.00 dividend income - $1,296.00 capital appreciation)

Absolute Return-on-Investment: -5.4%

= -$776.67/$14,312.67

Annualized Return-on-Investment: -99.0%

= (-$776.67/$14,312.67) * (365/20 days)

January 23rd, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with the January 23rd, 2026 weekly options expiration date.  Two positions (Arista Networks Inc. and 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 position in Sea Limited ADR closed out-of-the-money so its Calls expired and its shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions is as follows:

1. Arista Networks Inc. (ANET) -- +2.0% absolute return (equivalent to +48.2% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $118.00 strike price since the stock closed in-the-money at $136.34 per share.  The blog post detailing this Covered Call position is here. 

2. NVIDIA Corporation (NVDA) -- +2.0% absolute return (equivalent to +39.9% annualized return-on-investment) for the 18 days of this investment.  This Covered Call position was assigned at the $180.00 strike price since the stock closed in-the-money at $187.67 per share.  The original blog post detailing this Covered Call position is here. 

3. Sea Limited ADR (SE) -- This Covered Calls position closed yesterday at $124.78 which was below its $130.00 strike price, so the two Call options expired and 200 SE 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 Calls position by selling two Call options against the 200 Sea Ltd. shares currently held or close out the position by selling the 200 shares.   

I welcome your feedback at my email address shown below on any questions or topics related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls Position in Citigroup Inc.

This afternoon, a Covered Calls position was established in Citigroup Inc. (ticker symbol C) using my Dividend Capture Strategy (see here) when 200 shares were purchased at $113.45 and 2 February 6th, 2026 Call options were sold at $3.78 per share at the $111.00 strike price.  The net debit limit order at $109.67 was executed, so the time value was $1.33 per share [$3.78 Call options premium - ($113.45 stock purchase price - $111.00 strike price)]. There is also an upcoming quarterly ex-dividend of $.60 per share on February 2nd (a current annual dividend yield of 2.1%), so two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment since the ex-dividend is prior to the February 6th, 2026 options expiration date.  

Citigroup's earnings report 9 days ago was very positive. Also, since their next earnings report is not until April 14, 2026, there is no earnings report prior to the options expiration date.  From a technical indicators viewpoint, Market Edge's current rating of Morgan Stanley is a "Strong Buy"; and my Stock Rover platform has identified zero red flags for Citigroup.  An in-the-money Covered Calls position was established when the probability of the stock closing in-the-money (and therefore being assigned) on the 2/6/2026 options expiration date was 66.1%.  

Most companies in the Financial Sector provide only modest growth prospects, but they often provide good annual dividend yields (such as the 2.1% annual dividend yield for this Citigroup position).  Consequently, the Covered Calls Advisor targets opportunities to use the Dividend Capture Strategy in all Financial Sector Covered Calls positions.  This new February 6th, 2026 Citigroup Covered Calls position continues the Dividend Capture Strategy of often selling in-the-money monthly Covered Calls for one of six megacap U.S. banks (Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo) for each options expiration month:
(JPMorgan Chase quarterly for Jan, Apr, July, and Oct options expirations;
Citigroup, Morgan Stanley, and/or Wells Fargo for Feb, May, Aug, and Nov options expirations; and Bank of America and/or Goldman Sachs for Mar, Jun, Sep, and Dec options expirations). 

The goal of these monthly Covered Calls in these banks is to both provide an opportunity to either: (1) potentially capture the quarterly dividend payment and if the stock price remains above the strike price at options expiration, the maximum possible return-on-investment result on the options expiration date would be achieved; or (2) have the stock assigned early on the last trading day prior to the ex-dividend date in which case the Covered Calls Advisor is usually very pleased since the Dividend Capture Strategy criteria are designed such that often the annualized return-on-investment for early assignment is close to or somewhat greater than what would be achieved if the stock was instead assigned on its options expiration date.  So far, applying this approach has provided attractive annualized return results -- significantly better than would be achieved if Covered Calls positions for these bank stocks were instead held in the Covered Calls Advisor Portfolio in the other two non-dividend paying months each quarter.   

The average target price of the analysts covering Citigroup Inc. stock is $131.47 (+15.9% above today's stock purchase price).  Citigroup also passed all criteria in my customized "Financial Sector" stock screener as detailed in the chart below:

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

•  +1.2% absolute return (equivalent to +44.0% annualized return-on-investment for the next 10 days) if the stock is assigned early (on the last business day prior to the February 2nd, 2026 ex-dividend date); OR 

• +1.8% absolute return (equivalent to +45.7% annualized return-on-investment over the next 14 days) if the stock is assigned on the February 6th, 2026 options expiration date.

Citigroup Inc. (C) -- New Covered Calls Position
The simultaneous buy/write transaction was:
1/23/2026 Bought 200 Citigroup Inc. shares @ $113.45.
1/23/2026 Sold 2 Citigroup 2/6/2026 $111.00 Call options @ $3.78 per share.
Note: The Implied Volatility of the Call options was 26.2 when this position was transacted.
2/2/2026 Upcoming quarterly ex-dividend of $.60 per share.

Two possible overall performance results (including commissions) for this Citigroup Inc. Covered Calls position are as follows:
Covered Calls Cost Basis: $21,935.34
= ($113.45 - $3.78) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$754.66
= ($3.78 * 200 shares) - $1.34 commission
(b) Dividend Income (If options exercised early on January 30th, 2026, the last business day prior to the April 2nd, 2026 ex-div date): +$0.00; or
(b) Dividend Income (If Citigroup stock assigned on the April 6th, 2026 options expiration date): +$120.00
= ($.60 dividend per share x 200 shares)

(c) Capital Appreciation (If Citi Call options assigned early on January 30th): -$490.00
+($111.00 strike price - $113.45 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $111.00 strike price at options expiration): -$490.00
+($111.00 - $113.45) * 200 shares

1. Total Net Profit (If options exercised early): +$264.66

= (+$754.66 options income +$0.00 dividend income - $490.00 capital appreciation); or

2. Total Net Profit (If Citi shares assigned at $111.00 at the April 6th, 2026 options expiration): +$384.66

= (+$754.66 options income + $120.00 dividend income - $490.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised on business day prior to the Feb. 2nd, 2026 ex-dividend date]: +1.2%

= +$264.66/$21,935.34

Annualized Return-on-Investment (If option exercised early): +44.0%

= (+$264.66/$21,935.34) * (365/10 days); or

2. Absolute Return-on-Investment (If Citi shares assigned on the April 6th, 2026 options expiration date): +1.8%

= +$384.66/$21,935.34

Annualized Return-on-Investment (If Citi shares assigned at $111.00 at the Apr. 6th, 2026 expiration): +45.7%

= (+$384.66/$21,935.34) * (365/14 days)

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 $185.00 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)