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)