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)