Established Covered Calls in NVIDIA Corporation

Early in this morning's trading session, I established a short-term Covered Calls position of 13 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $172.20 was executed by simultaneously purchasing two hundred shares at $177.13 and selling two April 2nd, 2026 Call options at $4.93 per share and at the $177.50 strike price. A slightly out-of-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $177.50 strike price) on the 4/2/2026 options expiration date was 47.9% when this transaction was executed. 

NVIDIA reported their Q4 earnings after the market close three weeks ago. They substantially beat analysts' estimates on all relevant metrics including both earnings and revenue (which at $68.1 billion was 72.4% above the comparable quarter last year). In addition, their next quarter guidance at $78 billion is 76.9% above last year's result.  Two additional positives since their earnings report were the announcements at their GTC Conference and earlier this week an announcement of approval that shipments of their earlier generation H200 GPUs to approved companies in China can commence.  NVIDIA's stock has reacted negatively since then, but I agree with the numerous sell-side equity research firms that raised their NVIDIA post-earnings target prices.  The average target price of Wall Street analysts is now $264.57 (+49.4% above today's purchase price).  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $177.50 strike price) and therefore assigned on its April 2nd, 2026 options expiration date is +3.1% absolute return-on-investment (equivalent to +86.3% annualized return-on-investment for the next 13 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
3/20/2026 Bought 200 NVIDIA Corporation shares at $177.13.

3/20/2026 Sold 2 NVIDIA 4/2/2026 $177.50 Call options @ $4.93 per share.  The Implied Volatility of these Calls was 37.3 when this position was established, which is well above (as preferred) the VIX which was 25.0.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $34,441.34
= ($177.13 - $4.93) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$984.66
= ($4.93 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $177.50 strike price) on the 4/2/2026 options expiration date): +$74.00
+($177.50 strike price - $177.13 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $177.50 strike price on the 4/2/2026 options expiration date): +$1,058.66

= (+$984.66 options income + $0.00 dividend income + $74.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $177.50 strike price on the 4/2/2026 options expiration date): +3.1%

= (+$1,058.66/$34,441.34)

Potential Annualized Return-on-Investment: +86.3%
= (+$1,058.66/$34,441.34) * (365/13 days)