This position replaces the NVIDIA Covered Call that was assigned on last Friday's options expiration, so this now becomes the third NVIDIA Covered Call position in my Covered Calls Advisor Portfolio and continues my recent practice of having a NVIDIA Covered Call position expiring each week. A moderately in-the-money Covered Call position was established for this new position with the probability that NVIDIA's stock will close in-the-money on the 2/6/2026 options expiration date was 48.4% when this transaction was executed. As I prefer, the next earnings report on February 25th, 2026 is after the February 6th, 2026 options expiration date.
As detailed below, a potential return-on-investment result is +4.0% absolute return-on-investment (equivalent to +86.4% annualized
return-on-investment for the next 17 days) if NVIDIA's share price is in-the-money (i.e. above the $180.00 strike price) and therefore assigned on its February 6th, 2026 options expiration date.
NVIDIA Corporation (NVDA) -- New Covered Call Position
Today's buy/write net limit order transaction was as follows:
1/20/2026 Bought 100 NVIDIA Corporation shares at $179.86.
1/20/2026 Bought 100 NVIDIA Corporation shares at $179.86.
1/20/2026 Sold 1 NVIDIA 2/6/2026 $180.00 Call option @ $6.83 per share. The Implied Volatility of this Call option was 43.1 when this position was established.
A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $17,303.67
= ($179.86 - $6.83) * 100 shares + $.67 commission
Net Profit:
(a) Option Income: +$682.33
= ($6.83 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $180.00 strike price at expiration): +$14.00
+($180.00 strike price - $179.86 stock purchase price) * 100 shares
Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $180.00 strike price on the 2/6/2026 options expiration date): +$696.33
= (+$682.33 option income + $0.00 dividend income + $14.00 capital appreciation)
A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $17,303.67
= ($179.86 - $6.83) * 100 shares + $.67 commission
Net Profit:
(a) Option Income: +$682.33
= ($6.83 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $180.00 strike price at expiration): +$14.00
+($180.00 strike price - $179.86 stock purchase price) * 100 shares
Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $180.00 strike price on the 2/6/2026 options expiration date): +$696.33
= (+$682.33 option income + $0.00 dividend income + $14.00 capital appreciation)
Potential Absolute Return-on-Investment: +4.0%
= +$696.33/$17,303.67
Potential Annualized Return-on-Investment: +86.4%
= (+$696.33/$17,303.67) * (365/17 days)
