Continuation of Covered Calls Position in Generac Holdings Inc.

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

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

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

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

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

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

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

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

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

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

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

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

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