Established Covered Call in NVIDIA Corporation

Early in this morning's trading session, I established a Covered Call position of 21 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $165.89 was executed by simultaneously purchasing one hundred shares at $170.25 and selling one April 17th, 2026 Call option at $4.36 per share and at the $175.00 strike price. A moderately out-of-the-money (strike price above the stock purchase price) Covered Call position was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $175.00 strike price) on the 4/17/2026 options expiration date was 37.8% when this transaction was executed. This is a continuation of my practice of establishing Covered Calls positions in NVIDIA for each weekly options expiration date.

As detailed below, two potential return-on-investment results are: (1) +2.6% absolute return-on-investment (equivalent to +45.6% annualized return-on-investment for the next 21 days) if NVIDIA's share price is unchanged at the $170.25 stock purchase price on the April 17th, 2026 options expiration date; and  (2) +5.5% absolute return-on-investment (equivalent to +95.4% annualized return-on-investment for the next 21 days) if NVIDIA's share price is in-the-money (i.e. above the $175.00 strike price) and therefore assigned on its April 17th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
3/27/2026 Bought 100 NVIDIA Corporation shares at $170.25.

3/27/2026 Sold 1 NVIDIA 4/17/2026 $175.00 Call option @ $4.36 per share.  The Implied Volatility of this Call was 37.8 when this position was established  

Two possible overall performance results (including commissions) for this NVIDIA Corporation Covered Call position are as follows:
Covered Call Net Investment: $16,589.67
= ($170.25 - $4.36) * 100 shares + $.67 commission

Net Profit:
(a) Options Income: +$435.33
= ($4.36 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares close at the unchanged purchase price of $170.25 per share on the 4/17/2026 options expiration date): +$0.00
+($170.25 closing price at expiration - $170.25 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $175.00 strike price) on the 4/17/2026 options expiration date): +$475.00
+($175.00 strike price - $170.25 stock purchase price) * 100 shares

1. Total Net Profit Potential (If stock price closes at the unchanged purchase price of $170.25 per share on the 4/17/2026 options expiration date): +435.33
= (+$435.33 option income + $0.00 dividend income + $0.00 capital appreciation)
2. Total Net Profit Potential (If 100 NVIDIA shares assigned at the $175.00 strike price on the 4/17/2026 options expiration date): +$910.33

= (+$435.33 option income + $0.00 dividend income + $475.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If 100 NVDA shares closing price is unchanged at the original purchase price of $170.25 per share on the 4/17/2026 options expiration date): +2.6%
= +$435.33/$16,589.67
Potential Annualized Return-on-Investment (If 100 NVIDIA shares closing price is unchanged at the original $170.25 stock purchase price on the 4/17/2026 options expiration date): +45.6%
= (+$435.33/$16,589.67) * (365/21 days)

2. Potential Absolute Return-on-Investment (If 100 NVIDIA shares are in-the-money and therefore assigned (i.e. sold) at the $175.00 strike price on the 4/17/2026 options expiration date): +5.5%
= (+$910.33/$16,589.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $175.00 strike price on the 4/17/2026 options expiration date): +95.4%
= (+$910.33/$16,589.67) * (365/21 days)