There is also an upcoming quarterly ex-dividend of
$.575 per share on March 5th (at a current annual dividend yield of 2.3%), 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 5th is prior to the March 20th, 2026 options expiration date. A deep in-the-money Covered Calls position was established with the probability of the stock closing in-the-money (and therefore being assigned) on the 3/20/2026 options expiration date was 80.0%.
Expand Energy Corporation is a major U.S. energy company formed by the 2024 merger of Chesapeake Energy Corporation and Southwestern Energy Company, creating the largest independent natural gas producer in North America. It holds interests in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania; the Marcellus and Utica Shales in Ohio and West Virginia; and the Haynesville and Bossier Shales in Louisiana and Texas. Expand Energy aims to deliver affordable, reliable, and lower-carbon energy while integrating sustainability and operational discipline across its business. It also targets significant cost synergies and robust financial performance, including strong production growth and dividends to shareholders. In recent developments, the company is relocating its corporate headquarters to the Houston area to align closer with global natural gas markets.
As preferred, there is no quarterly earnings report prior to the options expiration date. LSEG Stock Reports Plus has perfect "10" ratings for both their Average Score and their Optimized Score. The average analysts' target price is $132.35 which is +29.9% above today's stock purchase price.
As detailed below, two potential return-on-investment results are:
- +1.3% absolute return (equivalent to +50.7% annualized return-on-investment for the next 9 days) if the stock is assigned early (on the last business day prior to the March 5th, 2026 ex-dividend date); OR
- +1.9% absolute return (equivalent to +28.3% annualized return-on-investment over the next 24 days) if the stock is assigned on the March 20th, 2026 options expiration date.
Expand Energy Corporation (EXE) -- New Covered Calls Position
The buy/write transaction was:
2/24/2026 Bought 200 Expand Energy Corp. shares @ $101.87.
2/24/2026 Sold 2 Expand Energy 3/20/2026 $95.00 Call options @ $8.05.
Note: the Implied Volatility of the Call options was 31.8% when this buy/write transaction was executed.
3/5/2026 Upcoming quarterly ex-dividend of $.575 per share.
Two possible overall performance results (including commissions) for this Expand Energy Corporation Covered Calls position are as follows:
Covered Calls Cost Basis: $18,765.34
= ($101.87 - $8.05) * 200 shares + $1.34 commission
Net Profit Components:
(a) Options Income: +$1,608.66
= ($8.05 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on March 4th, the last business day prior to the March 5th, 2026 ex-dividend date): +$0.00; or
(b) Dividend Income (If Expand Energy's stock is assigned at the March 20th, 2026 options expiration date): +$115.00 = $.575 dividend per share x 200 shares
(c) Capital Appreciation (If EXE's Call options assigned early on March 4th): -$1,374.00
+($95.00 strike price - $101.87 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at the $95.00 strike price at the 3/20/2026 options expiration): -$1,374.00
+($95.00 - $101.87) * 200 shares
(c) Capital Appreciation (If shares assigned at the $95.00 strike price at the 3/20/2026 options expiration): -$1,374.00
+($95.00 - $101.87) * 200 shares
1. Total Net Profit [If option exercised early on the last business day prior to the March 5th ex-dividend date)]: +$234.66
= (+$1,608.66 options income + $0.00 dividend income - $1,374.00 capital appreciation); or
2. Total Net Profit (If Expand Energy Corp. shares assigned at $95.00 strike price at the March 20th, 2026 options expiration date): +$349.66
= (+$1,608.66 + $115.00 - $1,374.00)
1. Potential Absolute Return-on-Investment (If option exercised early on 3/5/2026): +1.3%
= +$234.66/$18,765.34
Potential Annualized Return-on-Investment: +50.7%
= (+$234.66/$18,765.34) * (365/9 days); or
2. Potential Absolute Return-on-Investment (If Expand Energy's shares assigned at $95.00 at the March 20th, 2026 options expiration): +1.9%
= +$349.66/$18,765.34
Potential Annualized Return-on-Investment (If Expand Energy's shares assigned at the March 20th, 2026 options expiration date): +28.3%
= (+$349.66/$18,765.34) * (365/24 days)
