Continued Covered Calls Position in Dell Technologies Inc.

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

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

 

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

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

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

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

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

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

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

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

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