As detailed below, a potential return-on-investment result is +2.1% absolute return-on-investment (equivalent to +54.6% annualized
return-on-investment for the next 14 days) if NVIDIA's share price is in-the-money (i.e. above the $185.00 strike price) and therefore assigned on its January 16th, 2026 options expiration date.
NVIDIA Corporation (NVDA) -- New Covered Call Position
Today's buy/write net limit order transaction was as follows:
1/2/2026 Bought 100 NVIDIA Corporation shares at $188.64.
1/2/2026 Bought 100 NVIDIA Corporation shares at $188.64.
1/2/2026 Sold 1 NVIDIA 1/16/2026 $185.00 Call option @ $7.44 per share.
A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $18,120.67
= ($188.64 - $7.44) * 100 shares + $.67 commission
Net Profit:
(a) Option Income: +$743.33
= ($7.44 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $185.00 strike price at expiration): -$364.00
+($185.00 strike price - $188.64 stock purchase price) * 100 shares
Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $185.00 strike price at the options expiration date): +$379.33
= (+$743.33 option income + $0.00 dividend income - $364.00 capital appreciation)
A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $18,120.67
= ($188.64 - $7.44) * 100 shares + $.67 commission
Net Profit:
(a) Option Income: +$743.33
= ($7.44 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $185.00 strike price at expiration): -$364.00
+($185.00 strike price - $188.64 stock purchase price) * 100 shares
Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $185.00 strike price at the options expiration date): +$379.33
= (+$743.33 option income + $0.00 dividend income - $364.00 capital appreciation)
Potential Absolute Return-on-Investment: +2.1%
= +$379.33/$18,120.67
Potential Annualized Return-on-Investment: +54.6%
= (+$379.33/$18,120.67) * (365/14 days)
