February 20th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with February 20th, 2026 options expirations and all four positions (Las Vegas Sands Corporation, NVIDIA Corporation, Sea Limitied ADR, and Universal Health Services Inc.) closed with their stock prices in-the-money.  So, their Calls expired with no remaining value and the Covered Calls were closed out by the stocks being sold at their respective strike prices on their Feb. 20th options expiration date. The return-on-investment details (in alphabetical order) for each position is as follows:

1. Las Vegas Sands Corporation (LVS) -- +1.6% absolute return-on-investment (equivalent to +58.5% annualized return-on-investment) for the 10 days of this investment.  This Las Vegas Sands Covered Calls position had a $55.00 strike price and it closed at $58.01 yesterday.  The original blog post showing the details of this position is here. 

3. Nvidia Corporation (NVDA) -- +2.8% absolute return-on-investment (equivalent to +63.9% annualized return-on-investment) for the 16 days of this investment.  This NVIDIA position had a $172.50 strike price and it closed at $189.95 yesterday.  The original blog post showing the details of this position is here. 

3. Sea Limited ADR (SE) -- -4.3% absolute return-on-investment (equivalent to -19.4% annualized return-on-investment) for the 81 days of this investment.  This Sea Ltd. position had a $110.00 strike price and it closed at $115.20 yesterday.  The most recent blog post showing the details of this position is here.

4. Universal Health Services Inc. (UHS) -- +2.7% absolute return-on-investment (equivalent to +18.9% annualized return-on-investment) for the 52 days of this investment.  This Universal Health Services position had a $220.00 strike price and it closed at $230.49 yesterday.  The most recent blog post showing the details of this position is here.

I look forward to receiving your emails with your questions/comments at the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls in Newmont Corporation

This morning at 11:25 a.m. ET, a short-term Covered Calls position at my net debit limit order was executed in Newmont Corporation (ticker symbol NEM) when 200 shares were purchased at $120.25 and 2 March 6th, 2026 Call options were sold at $7.84 per share at the $115.00 strike price.  The buy/write net debit limit order at $112.41 was executed, so the potential time value profit was $2.59 per share [$7.84 Call options premium - ($120.25 stock purchase price - $115.00 strike price)]. 

There is also an upcoming quarterly ex-dividend of $.26 per share on March 3rd (at a current annual dividend yield of 0.9%), so two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment because the ex-dividend on March 3rd is prior to the March 6th, 2026 options expiration date.  An in-the-money Covered Calls position was established when the probability of the stock closing in-the-money (and therefore being assigned) on the 3/6/2026 options expiration date was 66.6%.  

As preferred, there is no quarterly earnings report prior to the options expiration date.  CFRA has a Strong Buy rating and LSEG has a Buy rating with their Average Score of 9 and Optimized Score of 10 (on a scale of 1 to 10).  It also appeared on my Key Metrics for Comparing Companies stock screener by passing all criteria therein.  

As detailed below, two potential return-on-investment results are: 

•  +2.3% absolute return (equivalent to +76.2% annualized return-on-investment for the next 11 days) if the stock is assigned early (on the last business day prior to the March 3rd, 2026 ex-dividend date); OR 

• +2.6% absolute return (equivalent to +68.0% annualized return-on-investment over the next 14 days) if the stock is assigned on the March 6th, 2026 options expiration date.
  

Newmont Corporation (NEM) -- New Covered Calls Position
The buy/write transaction was:
2/20/2026 Bought 200 Newmont Corp shares @ $120.25.
2/20/2026 Sold 2 Newmont 3/6/2026 $115.00 Call options @ $7.84.
Note: the Implied Volatility of the Call options was 48.3% when this buy/write transaction was executed.
3/3/2026 Upcoming quarterly ex-dividend of $.26 per share.

Two possible overall performance results (including commissions) for this Newmont Corporation Covered Calls position are as follows:
Covered Calls Cost Basis: $22,483.34
= ($120.25 - $7.84) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,566.66
= ($7.84 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on March 2nd, the last business day prior to the March 3rd ex-dividend date): +$0.00; or
(b) Dividend Income (If Newmont stock assigned at the March 6th, 2026 options expiration date): +$52.00 = $.26 dividend per share x 200 shares

(c) Capital Appreciation (If Newmont Call options assigned early on March 3rd): -$1,050.00

+($115.00 strike price - $120.25 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at the $115.00 strike price at the 3/6/2026 options expiration): -$1,050.00
+($115.00 - $120.25) * 200 shares

1. Total Net Profit [If option exercised early on the last business day prior to the March 3rd ex-dividend date)]: +$516.66

= (+$1,566.66 options income + $0.00 dividend income - $1,050.00 capital appreciation); or

2. Total Net Profit (If Newmont Corp. shares assigned at $115.00 strike price at the March 6th, 2026 expiration): +$568.66

= (+$1,566.66 + $52.00 - $1,050.00)

1. Potential Absolute Return-on-Investment (If option exercised early on 3/3/2026): +2.3%

= +$516.66/$22,483.34

Potential Annualized Return-on-Investment: +76.2%

= (+$516.66/$22,483.34) * (365/11 days); or

2. Potential Absolute Return-on-Investment (If Newmont shares assigned at $115.00 at the March 6th, 2026 options expiration): +2.6%

= +$568.66/$22,483.34

Potential Annualized Return-on-Investment (If Newmont shares assigned at the March 3rd, 2026 options expiration date): +68.0%

= (+$568.66/$22,483.34) * (365/14 days)

Covered Calls Established in Bank of America Corporation

Early in this morning's trading session, a Covered Calls position was established in Bank of America Corp. (ticker BAC) with the purchase of 500 shares at $51.91 per share and five March 13th, 2026 Call options were sold for $2.61 per share at the $50.00 strike price.  This Bank of America transaction occurred via a simultaneous buy/write transaction at my net debit limit order price of $49.30 per share.  The corresponding time value (aka extrinsic value) in the Call options was $.70 per share = [$2.61 Call options premium received - ($51.91 stock purchase price - $50.00 options strike price)].  A moderately in-the-money Covered Calls positions was established with the probability that the stock will close in-the-money on the options expiration date was 68.8%.  As preferred, the next earnings report on April 15th, 2026 is after the March 13th options expiration date. 

Bank of America goes ex-dividend at $.28 per share (2.2% annualized dividend yield at the current stock price) on March 6th, 2026 which is prior to the March 13th options expiration date, so this dividend is included in the potential return-on-investment results shown below.  As shown at the bottom of this post, all nine criteria in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (explained here) were met for this position.  

Most companies in the Financial Sector provide only modest growth prospects, but they often provide good annual dividend yields.  Consequently, the Covered Calls Advisor targets opportunities to use the Dividend Capture Strategy in all Financial Sector Covered Calls positions.  This new March 13th, 2026 Bank of America Covered Calls position continues the Dividend Capture Strategy of often selling in-the-money monthly Covered Calls for one of six megacap U.S. banks (Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo) for each options expiration month:
(JPMorgan Chase quarterly for Jan, Apr, July, and Oct options expirations;
Citigroup, Morgan Stanley, and/or Wells Fargo for Feb, May, Aug, and Nov options expirations; and Bank of America and/or Goldman Sachs for Mar, Jun, Sep, and Dec options expirations). 

The goal of these monthly Covered Calls in these banks is to both provide an opportunity to either: (1) potentially capture the quarterly dividend payment and if the stock price remains above the strike price at options expiration, the maximum possible return-on-investment result on the options expiration date for the position would be achieved; or (2) have the stock assigned early on the day prior to the ex-dividend date in which case the annualized return-on-investment for early assignment is often greater than that of an assignment on the options expiration date (which is true for this BAC Covered Calls position).  So far, applying this Dividend Capture Strategy has provided attractive annualized return results -- significantly better than would be achieved if Covered Calls positions for these bank stocks were held in the Covered Calls Advisor Portfolio in the other two months each quarter when an ex-dividend date does not occur.  

These returns also show that a significantly greater return-on-investment potential is available by establishing Covered Calls with intervening ex-dividends instead of establishing their comparable 100% Cash-Secured Puts positions since Covered Calls expiring on the options expiration date capture the dividend payment whereas selling Puts does not. 

The current average analysts' target price for Bank of America is $60.96 (+17.4% above today's stock purchase price).  BofA also appeared today on my Financial Sector stock screener by passing all criteria as shown in this table:

Two potential return-on-investment results for this Bank of America Covered Calls position are: (a) +1.4% absolute return-on-investment (equivalent to +36.7% annualized return-on-investment for the next 14 days) in the event that the stock is assigned early [i.e. on March 5th which is the last trading day prior to the March 6th ex-dividend date]; OR (b) +2.0% absolute return-on-investment (equivalent to +34.3% annualized return-on-investment over the next 21 days) if the stock is assigned on the March 13th, 2026 options expiration date. 

Bank of America Corporation (BAC) -- New Covered Calls Position

The buy/write transaction was as follows:
2/20/2026 Bought 500 shares of Bank of America Corp. stock @ $51.91 per share 
2/20/2026 Sold 5 BAC March 13th, 2026 $50.00 Call options @ $2.61 per share
Note: The Implied Volatility of these Calls was 30.2 when this position was established.
3/6/2026 Upcoming ex-dividend of $.28 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Calls Cost Basis: $24,653.35
= ($51.91 - $2.61) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,301.65
= ($2.61 * 500 shares) - $3.35 commission
(b) Dividend Income (If BAC shares assigned on 3/5/2026, the last business day prior to the 3/6/2026 ex-dividend date): = +$0.00; or
(b) Dividend Income (If BAC shares assigned at the 3/13/2026 options expiration date): +$140.00
= $.28 per share x 500 shares
(c) Capital Appreciation (If BAC shares assigned early on 3/5/2026): -$955.00
= ($50.00 strike price - $51.91 stock purchase price) * 500 shares; or
(c) Capital Appreciation (If shares above $50.00 strike price at the March 13th options expiration): -$955.00
= ($50.00 - $51.91) * 500 shares

1. Potential Net Profit (If Bank of America shares assigned on 3/5/2026, the day prior to the 3/6/2026 ex-dividend date): +$346.65
= (+$1,301.65 options income + $0.00 dividend income - $955.00 capital appreciation)
2. Potential Net Profit (If BAC price is above the $50.00 strike price at the March 13th options expiration): +$486.65
= (+$1,301.65 options income + $140.00 dividend income - $955.00 capital appreciation)

1. Absolute Return (If BAC shares assigned on 3/5/2026, the day prior to the March 6th ex-dividend date): +1.4%
= +$346.65/$24,653.35
Equivalent Annualized Return (If assigned early on day prior to ex-div date): +36.7%
= (+$346.65/$24,653.35) * (365/14 days)

2. Absolute Return (If BAC price is above $50.00 strike price at the March 13th options expiration): +2.0%
= +$486.65/$24,653.35
Equivalent Annualized Return (If assigned on the 3/13/2026 options expiration date): +34.3%
= (+$486.65/$24,653.35) * (365/21 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy.  As shown below, all nine criteria are achieved for this Bank of America Covered Calls position.

Covered Call Position Established in The Cigna Group

This afternoon a Covered Call position was established in The Cigna Group (ticker symbol CI) using my Dividend Capture Strategy (see post describing this strategy here).  One hundred Cigna shares were purchased at $287.06 and one March 13th, 2026 Call option was sold for $15.56 per share at the $275.00 strike price.  The buy/write net debit limit order at $271.50 was executed, so the potential time value profit is $3.50 per share [$15.56 Call option premium - ($287.06 stock purchase price - $275.00 strike price)].  There is an upcoming quarterly ex-dividend of $1.56 (annual dividend yield of 2.2%) on March 5th, so the potential return-on-investment results detailed below for this position includes this dividend income.    

As preferred by the Covered Calls Advisor, Cigna's next quarterly earnings report on May 7th, 2026 will be after the March 13th options expiration date.  Given the Covered Calls Advisor's current Overall Market Meter indicator of Neutral, an in-the-money Covered Call position was established with the probability the stock is in-the-money on the options expiration date was 72.3%.

Cigna is rated 10 Average Score and 9 Optimized Score by LSEG Stock Reports Plus and the average analysts' target price is 337.30 (+17.5% above today's stock purchase price).  Cigna also appeared today on my Key Metrics for Comparing Companies stock screener by passing all criteria shown in this table:

As detailed below, two potential return-on-investment results are: (1) +1.3% absolute return-on-investment (equivalent to +33.5% annualized return-on-investment over the next 14 days) if the stock is assigned on the day prior to the March 5th ex-dividend date; or (2) +1.9% absolute return-on-investment (equivalent to +30.9% annualized return-on-investment over the next 22 days) if the stock is assigned on the March 13th, 2026 options expiration date.

The Cigna Group (CI) -- New Covered Call Position
The buy/write transaction today was as follows:
2/19/2026 Bought 100 Cigna Group shares @ $287.06
2/19/2026 Sold 1 Cigna 3/13/2026 $275.00 Call option @ $15.56 per share.  
3/5/2026 Upcoming quarterly ex-dividend of $1.56 per share

Two potential overall performance results (including commissions) for this Cigna Covered Call position are as follows:
Covered Call Cost Basis: $27,150.67
= ($287.06 - $15.56) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,555.33
= ($15.56 * 100 shares) - $.67 commissions
(b) Dividend Income (If Cigna shares assigned on the day prior to the March 5th ex-dividend date): +$0.00
(b) Dividend Income (If Cigna shares assigned at the March 13th, 2026 options expiration date): +$156.00
= ($1.56 dividend per share x 100 shares)

(c) Capital Appreciation (If Cigna shares assigned on the day prior to the March 6th ex-dividend date): -$1,206.00

+($275.00 strike price - $287.06 stock purchase price) * 100 shares

(c) Capital Appreciation (If Cigna shares assigned at the $275.00 strike price at options expiration): -$1,206.00
+($275.00 - $287.06) * 100 shares

1. Total Net Profit (If Cigna shares assigned on the day prior to the March 5th ex-dividend date): +$349.33

= (+$1,555.33 option income + $0.00 dividend income - $1,206.00 capital appreciation)

2. Total Net Profit (If Cigna shares assigned at the March 13th, 2026 options expiration date): +$505.33

= (+$1,555.33 option income + $156.00 dividend income - $1,206.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If Cigna shares assigned on the day prior to the March 5th ex-dividend date) : +1.3%

= +$349.33/$27,150.67

Potential Annualized Return-on-Investment: +33.5%

= (+$349.33/$27,150.67) *(365/14 days)

2. Potential Absolute Return-on-Investment (If Cigna shares assigned at the March 13th, 2026 options expiration date): +1.9%

= +$505.33/$27,150.67

Potential Annualized Return-on-Investment: +30.9%

= (+$505.33/$27,150.67) *(365/22 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this Cigna Group position, all nine criteria are met.

Covered Call Established in Boeing Company

This afternoon, a Covered Call position was established in Boeing Company (ticker symbol BA) when the Covered Calls Advisor's buy/write limit order was executed -- 100 shares were purchased at $234.24 and one March 6th, 2026 Call option was sold at $12.36 per share at the $225.00 strike price.  Therefore, a net debit price of $221.88 which is a time value of $3.12 per share [$12.36 Call option price - ($234.24 stock price - $225.00 strike price)].  This is a moderately in-the-money position since its probability of closing in-the-money on the 3/6/2026 options expiration date was 70.5% when this position was established.  Also, as I prefer, there is no intervening quarterly earnings report since Boeing's next quarterly earnings report on April 22nd, 2026 is after this position's March 6th, 2026 options expiration date.

  

Boeing remains one of the world's duopoly companies (along with Airbus) in the commercial airline industry and is also a top 5 U.S. Defense contractor.  The company has struggled greatly in recent years from a series of aircraft groundings and mismanagement which included 6 consecutive years of negative earnings per share.  But under the new and capable leadership of CEO Kelly Ortberg for the past one and half years, Boeing is now inflecting back to profitability.    

Key Bullish Catalysts are: (1) Production Ramp-Up: Following the FAA's lifting of production caps in late 2025, Boeing is ramping the 737 MAX toward a target of 47 jets per month by summer 2026. Additionally, 787 Dreamliner production is slated to reach 10 per month during 2026.  (2) Financial Recovery: Analysts project 2026 as the first year of sustainably positive free cash flow (estimated in the low-single-digit billions) since the MAX crisis. Revenue is expected to reach approximately $96 billion with potential earnings of $2.34 to $3.00 per share. (3) Massive Backlog: Boeing holds a total backlog of over $636 billion, including firm orders for more than 5,900 commercial airplanes. In January 2026, Boeing outperformed Airbus in both deliveries (46) and net new orders (103). (4) Strategic Integration: The late-2025 acquisition of Spirit AeroSystems allows Boeing to bring critical fuselage manufacturing back in-house, aimed at ensuring tighter quality control and reducing supply chain friction. (5) Defense Growth: A projected increase in U.S. defense spending (potentially to $1.5 trillion) is expected to benefit Boeing’s Defense, Space & Security unit, which saw revenue rise to $6.9 billion in Q3 2025.

Boeing is included in Bank of America's US1 List for 2026.  The average target price of Wall Street analysts covering Boeing is +16.3% above today's $234.24 stock purchase price.  Significant stock price upside potential also depends on the successful certification of the 737 MAX 7 and MAX 10 variants in 2026, as well as flight test progress for the 777X. 

As detailed below, a potential return-on-investment result is +1.4% absolute return (equivalent to +34.1% annualized return-on-investment for the next 15 days) if the stock is in-the-money and therefore assigned on the March 6th, 2026 options expiration date.

Boeing Co. (BA) -- New Covered Call Position

The buy/write transaction was as follows:
2/19/2026 Bought 100 shares of Boeing Co. stock @ $234.24 per share.  
2/19/2026 Sold 1 Boeing March 6th, 2026 $225.00 Call option @ $12.36 per share.  The Implied Volatility of this Call option was 34.4 when this position was established.

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $22,188.67
= ($234.24 - $12.36) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,235.33
= ($12.36 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If BA stock is above the $225.00 strike price at the March 6th, 2026 expiration): -$924.00
= ($225.00 strike price - $234.24 stock purchase price) * 100 shares

Potential Total Net Profit: +$311.33
= (+$1,235.33 Call option income + $0.00 dividend income - $924.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.4%
= +$311.33/$22,188.67
Potential Equivalent Annualized Return-on-Investment: +34.1%
= (+$311.33/$22,188.67) * (365/15 days)

Established Covered Calls in Delta Air Lines Inc.

This morning, a buy/write limit order was entered in Delta Air Lines Inc. (ticker DAL) to buy 400 shares and simultaneously sell 4 Call options at the March 6th, 2026 weekly options expiration date and at the $65.00 strike price. The net debit limit price for my order was $64.08 and this order was executed with 400 shares purchased at $70.07 and 4 March 6th, 2026 Call options sold for $5.99 per share.  Therefore, a maximum potential time value profit of $.92 per share = [$5.99 options premium - ($70.07 stock price - $65.00 strike price)] is available for this position.  This in-the-money Covered Calls position has a probability of 75.8% of being in-the-money (i.e. above the $65.00 strike price) on the March 6th options expiration date.   

This position uses the Covered Calls Advisor's Dividend Capture Strategy (see here) since Delta has an upcoming quarterly ex-dividend of $.188 per share (a 1.1% annual dividend yield) on February 26th, 2026 which is prior to the March 6th options expiration date.  This dividend is included in the detailed return-on-investment calculations below.  Either an early assignment on the last trading day prior to the ex-dividend date or on the March 6th options expiration date would be desirable to the Covered Calls Advisor given the potential annualized return on investments for either outcome.  Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on April 8th, 2026 is after the March 6th, 2026 options expiration date.

As shown on the table at the bottom of this post, all nine criteria of the Dividend Capture Strategy are met with this position.  Even if the Delta Air Lines Inc. stock price declines somewhat during the next 17 days until the options expiration date, if the stock closes above the $65.00 strike price, then a satisfactory annualized-return-on-investment of +36.9% will be achieved.  

The average Target Price of the analysts covering Delta Air Lines is +17.2% above today's purchase price.  A primary reason for establishing this position was that Delta was highly ranked in my Stock Rover "Quality+Value+Growth" stock screener since all 21 criteria in that screener are currently achieved by Delta (see chart below): 

 
As detailed below, two potential return-on-investment results are: 

•  +1.4% absolute return (equivalent to +57.8% annualized return-on-investment for the next 9 days) if the stock is assigned early (on the last business day prior to the February 26th, 2026 ex-dividend date); or  
  

• +1.7% absolute return (equivalent to +36.9% annualized return-on-investment over the next 17 days) if the stock is assigned on the March 6th, 2026 options expiration date.

Delta Air Lines Inc. (DAL) -- New Covered Calls Position
The buy/write transaction was:
2/17/2026 Bought 400 Delta Air Lines Inc. shares @ $70.07.
2/17/2026 Sold 4 Delta 3/6/2026 $65.00 Call options @ $5.99 per share.  The Implied Volatility of these Calls was 44.5% when this buy/write transaction occurred, which as preferred is well above the current 20.8% for the S&P 500 Volatility Index (i.e. VIX).
2/26/2026 Upcoming quarterly ex-dividend of $.188 per share.

Two possible overall performance results (including commissions) for this Delta Air Lines Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $25,634.68
= ($70.07 - $5.99) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$2,393.32
= ($5.99 * 400 shares) - $2.68 commission
(b) Dividend Income (If Delta Air Lines Call options exercised early on Feb. 25, 2026, the last business day prior to the Feb. 26th ex-div date): +$0.00; or
(b) Dividend Income (If Delta stock assigned at the March 6th, 2026 options expiration date): +$75.20
= ($.188 dividend per share x 400 shares)

(c) Capital Appreciation (If Delta's Call options assigned early on Feb. 26th): -$2,028.00

+($65.00 strike price - $70.07 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If shares assigned at $65.00 strike price at the March 6th options expiration): -$2,028.00
+($65.00 - $70.07) * 400 shares

1. Total Net Profit [If option exercised early (business day prior to the February 26th, 2026 ex-dividend date)]: +$365.32

= (+$2,393.32 options income + $0.00 dividend income - $2,028.00 capital appreciation); or

2. Total Net Profit (If Delta's shares assigned at $65.00 at the March 6th, 2026 expiration): +$440.52

= (+$2,393.32 options income + $75.20 dividend income - $2,028.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to ex-dividend date]: +1.4%

= +$365.32/$25,634.68

Potential Annualized Return-on-Investment (If option exercised early): +57.8%

= (+$365.32/$25,634.68) * (365/9 days); or

2. Potential Absolute Return-on-Investment (If Delta's shares assigned on the March 6th options expiration date): +1.7%

= +$440.52/$25,634.68

Potential Annualized Return-on-Investment (If Delta's shares assigned at $65.00 at the March 6th, 2026 expiration): +36.9%

= (+$440.52/$25,634.68) * (365/17 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy. As shown below, all nine criteria are achieved for this Delta Air Lines Inc. Covered Calls position.

February 13th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had five Covered Calls positions with February 13th, 2026 options expiration dates.  Three positions (D.R. Horton Inc., Lowe's Companies Inc., and NVIDIA Corporation), closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  Two positions in KraneShares CSI China Internet ETF and Microsoft Corporation closed out-of-the-money so their Call options expired and the shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions (in alphabetical order) is as follows:

1. D.R. Horton Inc. (AMZN) -- +2.3% absolute return (equivalent to +46.1% annualized return-on-investment) for the 18 days of this investment.  This Covered Calls position was assigned at the $145.00 strike price since the stock closed in-the-money at $167.78 per share.  The original blog post detailing this Covered Calls position is here. 

2. KraneShares CSI China Internet ETF (KWEB) -- This Covered Calls position closed yesterday at $32.79 which was below its $34.50 strike price, so the five Call options expired and 500 KWEB shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Calls position by selling Call options against the 500 KWEB shares currently held or close out the position by selling these shares. 

3. Lowe's Companies Inc. (LOW) -- +   1.2% absolute return (equivalent to +16.3% annualized return-on-investment) for the 28 days of this investment.  This Covered Call position was assigned at the $265.00 strike price since the stock closed in-the-money at $287.39 per share.  The most recent blog post detailing this Covered Call position is here.    

4. Microsoft Corporation (MSFT) -- This Covered Call position closed yesterday at $401.32 which was well below its $425.00 strike price, so the one Call option expired and 100 Microsoft shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Call position by selling a Call option against the 100 Microsoft shares currently held or close out the position by selling these shares. 

5. NVIDIA Corporation (NVDA) -- +2.3% absolute return (equivalent to +57.1% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $182.50 strike price since the stock closed slightly in-the-money at $182.81 per share.  The most recent blog post detailing this Covered Call position is here.    

I welcome your feedback or questions at my email address shown below on anything related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Call Position Established in Amazon.com Inc.

Early in this morning's trading session, my buy/write net debit limit order was executed at a price of $188.90 when 100 shares of Amazon.com Inc. (ticker symbol AMZN) stock was purchased at $197.77 and 1 February 27th, 2026 $192.50 Call option was sold at $8.87 per share.  The potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $3.60 per share [$8.87 Call option premium - ($197.77 stock purchase price - $192.50 strike price)].  The probability that this Amazon Call option will be above the $192.50 strike price on the 2/27/2026 options expiration date when this Covered Call position was established was 64.9%.

The average target price of the analysts covering Amazon.com stock is $285.95 (+44.6% above today's stock purchase price).  Amazon.com also passed all criteria in my customized "Quality+Growth" stock screener as detailed in the chart below:

As detailed below, a potential return-on-investment result is +1.9% absolute return-on-investment (equivalent to +49.6% annualized return-on-investment for the next 14 days) if Amazon's share price is in-the-money (i.e. above the $192.50 strike price) and therefore assigned on its February 27th, 2026 options expiration date.  

Amazon.com Inc. (AMZN) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
2/13/2026 Bought 100 shares of Amazon.com stock @ $197.77 per share.  
2/13/2026 Sold 1 AMZN February 27th, 2026 $192.50 Call option @ $8.87 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Call was 36.6 when this position was established which, as preferred, is well above the current VIX of 20.6.  

A possible overall performance result (including commissions) if this position is assigned on its 2/27/2026 options expiration date is as follows:
Covered Call Net Investment: $18,890.67
= ($197.77 - $8.87) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$886.33
= ($8.87 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Amazon.com stock is above the $192.50 strike price at the February 27th, 2026 options expiration date): -$527.00
= ($192.50 strike price - $197.77 stock purchase price) * 100 shares

Total Net Profit Potential (If assigned at the $192.50 strike price on the Feb. 27th, 2026 options expiration date): +$359.33
= (+$886.33 options income + $0.00 dividend income - $527.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.9%
= +$359.33/$18,890.67
Potential Equivalent Annualized-Return-on-Investment: +49.6%
= (+$359.33/$18,890.67) * (365/14 days)

Established Covered Calls in Las Vegas Sands Corporation

This morning a short-term Covered Calls position was established in Las Vegas Sands Corporation (ticker LVS). Three hundred shares were purchased at $56.50 and three February 20th, 2026 monthly Call options were sold at the $55.00 strike price at $2.36 per share--a buy/write net debit transaction of $54.14 per share which provides a $.86 per share time value profit potential.  

Las Vegas Sands was one of only 37 companies that passed all criteria in my "Key Metrics for Comparing Companies" stock screener, which places it in the top 1.4% of the 2,643 major U.S. companies considered in this stock screener.  The average target price of the 18 analysts following Las Vegas Sands Corp. is $69.36 which is +22.7% above today's stock purchase price.  The stock screener criteria and the actual numbers for LVS are shown in the filter breakdown in the table below:

As detailed below, a potential return-on-investment result is +1.6% absolute return-on-investment (equivalent to +58.5% annualized return-on-investment for the next 10 days) if the Las Vegas Sands Corporation share price is in-the-money (i.e. above the $55.00 strike price) and therefore assigned on its February 20th, 2026 options expiration date.

 
Las Vegas Sands Corporation (LVS) -- New Covered Calls Position 

The Buy/Write transaction was as follows:
2/10/2026 Bought 300 shares of Las Vegas Sands Corporation @ $56.50 per share.  
2/10/2026 Sold 3 LVS February 20th, 2026 $55.00 Call options @ $2.36 per share.  The Implied Volatility of these Call options was 42.6 and the probability that the Calls will expire in-the-money on the options expiration date was 63.0% when this transaction was executed today. 

A possible overall performance result (including commissions) for this Las Vegas Sands Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $15,974.01
= ($56.50 - $2.36) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$705.99
= ($2.36 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Las Vegas Sands Corporation shares assigned at $55.00 strike price at expiration): -$450.00
+($55.00 - $56.50) * 300 shares

Total Net Profit Potential (If 300 Las Vegas Sands shares assigned at $55.00 strike price at expiration): +$255.99
= (+$705.99 options income +$0.00 dividend income -$450.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.6%
= +$255.99/$15,974.01
Potential Annualized Return-on-Investment: +58.5%
= (+$255.99/$15,974.01) * (365/10 days)

Covered Call Position Established in RTX Corporation

Today a Covered Call position was established in RTX Corporation (ticker symbol RTX). In early 2020, Raytheon merged with United Technologies (after they spun-out their Carrier and Otis Elevators divisions) making the new Raytheon a very strong company with approximately equal parts defense and commercial business revenues.  Three years ago, they changed their corporate name to RTX Corporation. 

RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers by designing, developing, and providing advanced capabilities in integrated air and missile defense, smart weapons, and missiles.

My net debit buy/write limit order was executed when 100 shares were purchased at $198.01 and 1 February 27th, 2026 weekly Call option was sold at $6.37 per share at the $195.00 strike price.  The time value (aka extrinsic value) in the Call option was $3.36 per share [$6.37 Call option premium - ($198.01 stock price - $195.00 strike price)] when this transaction executed.  There is also an upcoming ex-dividend on Feb. 20th at $.68 per share (7.9% above last year's dividend rate for the same quarter).  Two potential return-on-investment results for this position are detailed below and include the possibility of early exercise since the ex-dividend is prior to the February 27th, 2026 options expiration date.  Given my current Overall Market Meter outlook of Neutral, a slightly in-the-money Covered Call position was established and the probability that the Call will remain in-the-money on the options expiration date was 58.8% when this transaction occurred.  Important to the Covered Calls Advisor, RTX reported their Q2 2025 earnings report two weeks ago, so there is no intervening earnings report prior to the February 27th options expiration date.  

As detailed below, two potential return-on-investment results are: 

•  +1.7% absolute return (equivalent to +58.1% annualized return-on-investment for the next 11 days) if the stock is assigned early (on the last business day prior to the February 20th ex-dividend date); OR 

• +2.1% absolute return (equivalent to +42.7% annualized return-on-investment over the next 18 days) if the stock is assigned on the February 27th options expiration date.

RTX Corporation (RTX) -- New Covered Call Position

The buy/write transaction was:
2/9/2026 Bought 100 RTX shares @ $198.01
2/9/2026 Sold 1 RTX 2/27/2026 $195.00 Call option @ $6.37 per share
2/20/2026 Upcoming quarterly ex-dividend of $.68 per share

Two possible overall performance results (including commissions) for this RTX Corp. Covered Call position are as follows:
RTX Covered Call Cost Basis: $19,164.67
= ($198.01 - $6.37) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$636.33
= ($6.37 * 100 shares) - $.67 option income
(b) Dividend Income (If option exercised early on Feb. 19th, 2026, the last trading day prior to the February 20th ex-div date): +$0.00; or
(b) Dividend Income (If RTX stock assigned on the February 27th, 2026 options expiration date): +$68.00
= ($.68 dividend per share x 100 shares)
(c) Capital Appreciation (If RTX Call option assigned early on Feb. 19th): -$301.00
+($195.00 strike price - $198.01 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $195.00 strike price at options expiration): -$301.00
+($195.00 - $198.01) * 100 shares

1. Total Net Profit [If option exercised on Feb. 19th (last business day prior to the Feb. 20th ex-dividend date)]: +$335.33

= (+$636.33 options income + $0.00 dividend income - $301.00 capital appreciation); or

2. Total Net Profit (If RTX shares assigned at $195.00 strike price at the Feb. 27th, 2026 options expiration date): +$403.33

= (+$636.33 + $68.00 - $301.00)

1. Absolute Return (If option exercised early): +1.7%

= +$335.33/$19,164.67

Annualized Return-on-Investment (If option exercised early): +58.1%

= (+$335.33/$19,164.67) * (365/11 days); or

2. Absolute Return (If RTX shares assigned at the $195.00 strike price at the Feb. 27th, 2026 options expiration date): +2.1%

= +$403.33/$19,164.67

Annualized Return-on-Investment (If RTX shares assigned at the $195.00 at the 2/27/2026 options expiration date): +42.7%

= (+$403.33/$19,164.67) x (365/18 days)

These return-on-investment results will be achieved as long as the stock is above the $195.00 strike price on the options expiration date.  If the stock declines below the strike price, the breakeven price of $190.96 ($198.01 stock purchase price - $6.37 option income - $.68 dividend income) provides 3.6% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this RTX Corporation position, all nine criteria were met.

Continuation of Covered Calls Position in Sea Limited ADR

My Covered Calls position in Sea Limited ADR (ticker SE) closed out-of-the-money on last Friday's options expiration date, so the Call options expired and the shares remained in the Covered Calls Advisor Portfolio.  This morning, I decided to continue this Covered Calls position by selling two Sea Limited Call options against the shares currently held.  The transactions-to-date for these positions as well as the potential return-on-investment results if this position is in-the-money and therefore assigned on its options expiration date is as follows:

Sea Limited ADR (SE) -- Continued this Covered Calls Position
The original simultaneous buy/write transaction was as follows:
12/1/2025 Bought 200 Sea Ltd. shares @ $137.15
12/1/2025 Sold 2 SE 12/19/2025 $130.00 Call options @ $9.65 per share
Note: the Implied Volatility of the Calls was 43.0 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.2.
12/19/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/26/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $2.38 per share when the price of Sea Ltd. stock was at $126.96.
1/9/2026 Sea Ltd. Covered Calls rolled out by buying-to-close the two 1/9/2026 $130.00 Calls at $4.25 per share and simultaneously selling two 1/23/2026 $130.00 Calls at $6.70 per share, so a net credit of $2.45 per share.
1/23/2026 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
1/27/2026 Continued Covered Calls position by selling-to-open two 2/6/2026 $127.00 Calls at $3.30 per share when the price of Sea Ltd. stock was at $125.41.
2/6/2026 Two Sea Ltd. Calls expired out-of-the-money at $108.54, so the 200 shares remained in the Covered Calls Advisor Portfolio.
2/9/2026 Continued Covered Calls position by selling-to-open two 2/20/2026 $110.00 Calls at $3.90 per share when the price of Sea Ltd. stock was at $109.35.  This Covered Calls position is being continued because I remain bullish on the company and am now attempting to reduce the current unrealized loss and improve the position results closer to breakeven. 

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if the stock price is in-the-money and therefore assigned at the $110.00 strike price on the options expiration date is as follows:

Covered Calls Cost Basis: $25,501.34
= ($137.15 - $9.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$4,329.30
= ($9.65 + $2.38 - $4.25 + $6.70 + $3.30 + $3.90) * 200 shares - $6.70 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $110.00 strike price at the 2/20/2026 options expiration date): -$5,430.00
+($110.00 strike price - $137.15 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $110.00 strike price on the 2/20/2026 options expiration date): -$1,100.70

= (+$4,329.30 options income + $0.00 dividend income - $5,430.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $110.00 strike price on the 2/20/2026 options expiration date): -4.3%

= -$1,100.70/$25,501.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $110.00 strike price at the 2/20/2026 options expiration date): -19.4%

= (-$1,100.70/$25,501.34) * (365/81 days)

February 6th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with the February 6th, 2026 weekly options expiration date.  Three positions (Citigroup Inc., Dell Technologies Inc., and NVIDIA Corporation) closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  The other position in Sea Limited ADR closed out-of-the-money so its Calls expired and its shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions (in alphabetical order) is as follows:

1. Citigroup Inc. (C) -- +1.8% absolute return (equivalent to +45.7% annualized return-on-investment) for the 14 days of this investment.  This Covered Calls position was assigned at the $111.00 strike price since the stock closed in-the-money at $122.69 per share.  The blog post detailing this Covered Calls position is here. 

2. Dell Technologies Inc. (DELL) -- -2.5% absolute return (equivalent to -15.7% annualized return-on-investment) for the 57 days of this investment.  This Covered Calls position was assigned at the $115.00 strike price since the stock closed in-the-money at $121.05 per share.  The most recent blog post detailing this Covered Calls position is here. 

3. NVIDIA Corporation (NVDA) -- +4.0% absolute return (equivalent to +86.4% annualized return-on-investment) for the 17 days of this investment.  This Covered Call position was assigned at the $180.00 strike price since the stock closed in-the-money at $185.41 per share.  The original blog post detailing this Covered Call position is here.  NVIDIA's +7.9% stock price move yesterday (Friday) was fortuitous since it move the stock price from out-of-the-money to in-the-money -- so the maximum potential return-on-investment was achieved for this position. 

4. Sea Limited ADR (SE) -- This Covered Calls position closed yesterday at $108.54 which was below its $127.00 strike price, so the two Call options expired and 200 SE shares now remain in the Covered Calls Advisor Portfolio.  The most recent blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Calls position by selling two Call options against the 200 Sea Ltd. shares currently held or close out the position by selling the 200 shares.   

The +1.9% move in the S&P 500 yesterday raised the index to only 1.0% below its all-time high price, and I'm happy to report that thanks primarily to Covered Calls, the total value of my Schwab investment accounts (brokerage account plus IRAs) is now at an all-time high.  Remember, because of the tax-free nature of capital gains maintained in IRA accounts, Covered Calls can be an especially attractive investing strategy when done in IRAs (see #11 in my blog post article here).  

I'm now 75 years old, and Covered Calls investing has been very good to me (and therefore also to my family) over the past several decades. So, I am investing more conservatively now (i.e. selecting in-the-money strike prices) than I did when I was younger and focused more on trying to maximize my return-on-investments via at-the-money and out-of-the-money strikes.  That is primarily because I used to have a higher risk tolerance since I had so many more years to recover from bear market losses.  Now I have fewer years remaining to recover large losses, thus my more conservative investing approach now.          

I welcome your feedback at my email address shown below on any questions or topics related to the Covered Calls investing strategy.

Cheers!

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Early Assignment of Covered Calls Position in Wells Fargo & Company

I was notified via email early this morning by my broker (Schwab) that the two Wells Fargo & Company (ticker WFC) February 13th, 2026 Call options were exercised early yesterday.  Wells Fargo's stock price increased from $87.14 when this position was established to $91.56 at yesterday's market close.  The original $.68 time value in the Calls when the position was established had declined on yesterday's market close to about $.10 per share.  So, with 8 days remaining until the February 13th, 2026 options expiration date, the owner of these Calls exercised their option to buy the 200 shares at the $84.00 strike price in order to receive today's (December 6th) $.45 per share ex-dividend.  

Although I will not receive the ex-dividend, I am satisfied with the +32.8% annualized-return-on-investment (aroi) result achieved since it slightly exceeds the 30.8% maximum aroi that might have been achieved if this position instead had remained in-the-money and would therefore be assigned on the February 13th options expiration date.   

The post when this Wells Fargo & Company Covered Calls position was originally established is here.  

As detailed below, the return-on-investment result for this Wells Fargo & Company Covered Calls position was +0.8% absolute return in 9 days (equivalent to a +32.8% annualized return-on-investment).

Wells Fargo & Company (WFC) -- New Covered Calls Position
The buy/write transaction was:
1/28/2026 Bought 200 Wells Fargo shares @ $87.14
1/28/2026 Sold 2 Wells Fargo 2/13/2026 $84.00 Call options @ $3.82
2/6/2026 Early Assignment of these two WFC Call options, so the Calls expired and 200 WFC shares were sold at the $84.00 strike price.

The overall performance results (including commission) for this Wells Fargo Covered Calls position are as follows:
Covered Calls Net Investment: $16,665.34
= ($87.14 - $3.82) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$762.66
= ($3.82 * 200 shares) - $1.34 commission
(b) Dividend Income (Call options exercised early on February 5th, the day prior to the February 6th ex-div date): +$0.00

(c) Capital Appreciation: -$628.00 = ($84.00 strike price - $87.14 stock purchase price) * 200 shares

Total Net Profit [Call options exercised on 2/5/2026 (business day prior to the 2/6/2026 ex-dividend date)]: +$134.66

= (+$762.66 options income + $0.00 dividend income - $628.00 capital appreciation)

Absolute Return-on-Investment: +0.8%

= +$134.66/$16,665.34

Annualized Return-on-Investment: +32.8%

= (+$134.66/$16,665.34) * (365/9 days)

Established Covered Call Position in Capital One Financial Corporation

Late in this morning's trading session, a Covered Call position was established in Capital One Financial Corporation (ticker symbol COF) when the Covered Calls Advisor's buy/write limit order was executed -- 100 shares were purchased at $219.31 and one February 27th, 2026 Call option was sold at $13.25 per share at the $210.00 strike price.  Therefore, a net debit price of $206.06 which is a time value of $3.94 per share [$13.25 Call options price - ($219.31 stock price - $210.00 strike price)].  This is a moderately in-the-money position since its probability of closing in-the-money on the 2/27/2026 options expiration date was 67.8% when this position was established.  The current average target price of the 22 analysts covering Capital One Financial is $278.53 (+27.0% above today's stock purchase price).  

Two potential return-on-investment results for this position are highlighted below and includes the possibility of early assignment since a quarterly ex-dividend of $.80 per share (1.5% annualized dividend yield) goes ex-dividend on February 19th (which is prior to the February 27th options expiration date).  The stock would have to move up in price by February 18th which is the last trading day prior to the February 19th ex-div date and by an amount that would cause the time value remaining in the option to decline from its $3.94 value today to about $.20 or less.  If this occurs, the owner of the Call option might exercise their right to purchase the stock at the $210.00 strike price, in which case the option would immediately expire worthless but the owner of the Call would then own the stock and would capture the dividend.  This early assignment would be a desirable outcome since its +49.8% annualized return-on-investment (aroi) is greater than the +38.1% aroi that would be achieved if the position were to be instead assigned on its February 27th options expiration date.  But either result would be attractive since they both exceed my preferred minimum annualized return-on-investment criteria (see criteria #8 and #9 at the bottom of this post) when using my Dividend Capture Strategy.  Also, as I prefer, there is no intervening quarterly earnings report since Capital One's next quarterly earnings report on April 21st, 2026 is after this position's Feb. 27th, 2026 options expiration date.

  

As detailed below, two potential return-on-investment results are: 

•  +1.9% absolute return (equivalent to +49.8% annualized return-on-investment for the next 14 days) if the stock is assigned early (business day prior to the February 19th, 2026 ex-dividend date); OR 

• +2.3% absolute return (equivalent to +38.1% annualized return-on-investment over the next 22 days) if the stock is assigned on the February 27th, 2026 options expiration date.

Capital One Financial Corporation (COF) -- New Covered Call Position
The buy/write transaction was:
2/5/2026 Bought 100 Capital One Financial shares @ $219.31
2/5/2026 Sold 1 Capital One 2/27/2026 $210.00 Call option @ $13.25 per share.  The Implied Volatility of the Calls was 36.5 when this transaction occurred which, as I prefer, is well above the current S&P 500 Volatility Index (i.e. VIX) of 20.6.
2/19/2026 Upcoming quarterly ex-dividend of $.80 per share

Two possible overall performance results (including commissions) for this Capital One Covered Call position are as follows:
Covered Call Net Investment: $20,606.67
= ($219.31 - $13.25) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$1,324.33
= ($13.25 * 100 shares) - $.67 commission
(b) Dividend Income (If option exercised early on February 18th, the last business day prior to the February 19th ex-div date): +$0.00; or
(b) Dividend Income (If COF stock assigned at the February 27th, 2026 options expiration date): +$80.00
= ($.80 dividend per share x 100 shares)
(c) Capital Appreciation (If Capital One Call option assigned early): -$931.00
+($210.00 strike price - $219.31 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $210.00 strike price at options expiration): -$931.00 = +($210.00 - $219.31) * 100 shares

1. Total Net Profit [If option exercised early]: +$393.33

= (+$1,324.33 option income +$0.00 dividend income - $931.00 capital appreciation); or

2. Total Net Profit (If COF shares assigned at $210.00 at the Feb. 27th options expiration date): +$473.33

= (+$1,324.33 option income +$80.00 dividend income - $931.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised early on Feb. 18th (business day prior to the 2/19/2026 ex-dividend date)]: +1.9%

= +$393.33/$20,606.67

Annualized Return-on-Investment (If option exercised early): +49.8%

= (+$393.33/$20,606.67) * (365/14 days); or

2. Absolute Return-on-Investment (If Capital One shares assigned at $210.00 at the February 27th, 2026 options expiration date): +2.3%

= +$473.33/$20,606.67

Annualized Return-on-Investment (If COF shares assigned at $210.00 at the 2/27/2026 options expiration): +38.1%

= (+$473.33/$20,606.67) * (365/22 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy.  Eight of the nine criteria are achieved for this Capital One Financial Covered Call position.

Established Covered Call in NVIDIA Corporation

An in-the-money Covered Call position was established early in this morning's trading session in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $167.79 was executed by simultaneously purchasing one hundred shares at $178.19 and selling one February 20th, 2026 Call option at the $172.50 strike price at $10.40 per share, which provides a $4.71 per share = [$10.40 Call option premium received - ($178.19 stock purchase price - $172.50 option strike price)] time value profit potential.  This new position continues my recent practice of having a NVIDIA Covered Call position expiring each week.  An 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 2/20/2026 options expiration date was 61.8% when this transaction was executed.  As I prefer, the next earnings report on February 25th, 2026 is after the February 20th, 2026 options expiration date. 

As detailed below, a potential return-on-investment result is +2.8% absolute return-on-investment (equivalent to +63.9% annualized return-on-investment for the next 16 days) if NVIDIA's share price is in-the-money (i.e. above the $172.50 strike price) and therefore assigned on its February 20th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
2/4/2026 Bought 100 NVIDIA Corporation shares at $178.19.

2/4/2026 Sold 1 NVIDIA 2/20/2026 $172.50 Call option @ $10.40 per share.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $16,779.67
= ($178.19 - $10.40) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,039.33
= ($10.40 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $172.50 strike price at expiration): -$569.00
+($172.50 strike price - $178.19 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $172.50 strike price at the options expiration date): +$470.33
= (+$1,039.33 option income + $0.00 dividend income - $569.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.8%
= +$470.33/$16,779.67
Potential Annualized Return-on-Investment: +63.9%
= (+$470.33/$16,779.67) * (365/16 days)

Established Covered Calls Position in KraneShares CSI China Internet ETF

A short-term in-the-money Covered Calls position was established today in KraneShares CSI China Internet ETF (ticker KWEB).  Five hundred shares were purchased at $35.21 and five February 13th, 2026 Call options were sold at the $34.50 strike price at $1.14 per share--a buy/write net debit limit transaction of $34.07 per share which provides a maximum $.43 per share [$1.14 Call options premium - ($35.21 stock purchase price - $34.50 strike price)] time value profit potential.  The probability of the Calls being in-the-money on the options expiration date was 63.4% when this transaction occurred. 

As detailed below, a potential result is +1.2% absolute return-on-investment (equivalent to +41.2% annualized return-on-investment for the next 11 days) if KWEB's share price is in-the-money (i.e. above the $34.50 strike price) and therefore assigned on its February 13th, 2026 options expiration date.

 
KraneShares CSI China Internet ETF (KWEB) -- New Covered Calls Position 

The net debit limit Buy/Write transaction was as follows:
2/2/2026 Bought 500 shares of KraneShares CSI China Internet ETF @ $35.21 per share.  
2/2/2026 Sold 5 KWEB Feb. 13th, 2026 $34.50 Call options @ $1.14 per share.  The Implied Volatility of the Calls was 30.5 when this position was established.  

A possible overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows: 

KWEB Covered Calls Net Investment: $17,038.35

= ($35.21 - $1.14) * 500 shares + $3.35 commission

Net Profit:
(a) Options Income: +$566.65
= ($1.14 * 500 shares) - $3.35 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 500 CSI China Internet ETF shares assigned at $34.50 strike price at expiration): -$355.00
+($34.50 strike price - $35.21 shares purchase price) * 500 shares

Total Net Profit Potential (If 500 CSI China Internet ETF shares are assigned because they are in-the-money at the options expiration date): +$211.65
= (+$566.65 options income + $0.00 dividend income - $355.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.2%
= +$211.65/$17,038.35
Potential Annualized Return-on-Investment: +41.2%
= (+$211.65/$17,038.35) * (365/11 days)

Covered Call Position Closed in Palo Alto Networks Inc.

At last Friday's weekly options expiration, three Covered Calls positions closed in-the-money each with a net profitable outcome, and one Covered Call position in Palo Alto Networks Inc. (ticker PANW) closed out-of-the-money at $176.97 which was well below its $185.00 strike price (see here).  

Software stocks (and even Cybersecurity Software stocks like Palo Alto) are currently underperforming the overall market over concerns about how significantly AI developments might negatively affect Software companies' future growth prospects.  For this reason, and also since I prefer to avoid holding stocks on their earnings reporting date (and Palo Alto has an upcoming quarterly earnings report on February 12th), I decided to close out this position by selling the 100 PANW shares.  So early in this morning's trading session, I closed out the position at a net loss of $460.67 when I sold the 100 Palo Alto Networks' shares at $177.36.  The transactions history for this Palo Alto Networks Covered Call position and its associated return-on-investment results are detailed below.

Palo Alto Networks Inc. (PANW) -- Covered Call Position Closed Out

The original buy/write net debit limit order transaction was as follows:
1/15/2026 Bought 100 Palo Alto Networks shares at $189.28.

1/15/2026 Sold 1 Palo Alto Networks 1/30/2026 $185.00 Call option @ $7.32 per share. The Implied Volatility of this Call option was 31.5 when this position was established. 

1/30/2026 One PANW $185.00 Call option closed out-of-the-money at $176.97, so the Call option expired and 100 PANW shares remained in the Covered Calls Advisor Portfolio.

2/2/2026 Closed out this Covered Call position by selling the 100 Palo Alto Networks shares at $177.36 per share. 

The overall performance results (including commissions) for this Palo Alto Networks Covered Call position are as follows:
Covered Call Net Investment: $18,196.67
= ($189.28 - $7.32) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$731.33
= ($7.32 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (100 Palo Alto Networks shares sold at $177.36 per share): -$1,192.00

+($177.36 stock selling price - $189.28 stock purchase price) * 100 shares

Total Net Loss: -$460.67

= (+$731.33 option income + $0.00 dividend income - $1,192.00 capital loss)

Absolute Return-on-Investment: -3.5%

= -$460.67/$13,336.67

Annualized Return-on-Investment: -70.0%

= (-$460.67/$13,336.67) * (365/18 days)