Established Covered Calls in NVIDIA Corporation

Today I established a short-term Covered Calls position in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $210.02 was executed and the time value was $2.48 per share [$9.24 Call options premium - ($219.26 stock purchase price - $212.50 strike price)].  An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $212.50 strike price) on the 5/29/2026 options expiration date was 69.6% when this transaction was executed.  

I prefer not to hold positions on earnings reporting dates and since NVIDIA reported their earnings yesterday (which were stellar in all respects), I decided to re-establish my normal practice of establishing weekly Covered Call positions in NVIDIA each week.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $212.50 strike price) and therefore assigned on its May 29th, 2026 options expiration date is +1.2% absolute return-on-investment (equivalent to +53.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
5/21/2026 Bought 300 NVIDIA Corporation shares at $219.26.

5/21/2026 Sold 3 NVIDIA 5/29/2026 $212.50 Call options @ $9.24 per share.  The Implied Volatility of these Calls was 39.5 when this position was established, which is well above (as preferred) the current value of VIX.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $63,008.01
= ($219.26 - $9.24) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$2,769.99
= ($9.24 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 NVIDIA shares assigned (i.e. above the $212.50 strike price) on the 5/29/2026 options expiration date): -$2,028.00
+($212.50 strike price - $219.26 stock purchase price) * 300 shares

Total Net Profit Potential (If 300 NVIDIA shares assigned at the $212.50 strike price on the 5/29/2026 options expiration date): +$741.99

= (+$2,769.99 options income + $0.00 dividend income - $2,028.00 capital appreciation)

Potential Absolute Return-on-Investment (If 300 NVIDIA shares assigned (i.e. sold) at the $212.50 strike price on the 5/29/2026 options expiration date): +1.2%

= (+$741.99/$63,008.01)

Potential Annualized Return-on-Investment (If 300 NVIDIA shares assigned at the $212.50 strike price on the 5/29/2026 options expiration date): +53.7%
= (+$741.99/$63,008.01) * (365/8 days)

Continued Covered Calls Position in IBM Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in IBM Corporation (ticker IBM) which expired last Friday with the stock at $219.30 which was below the $225.00 strike price.  Today this position was continued by rolling down-and-out to the May 29th, 2026 options expiration date at the $225.50 strike price by selling-to-open two Calls at $5.60 per share when the price of IBM's stock was $222.78.  

As detailed below, a potential outcome for this IBM Covered Calls investment if the stock is in-the-money and therefore assigned on the options expiration date is +3.1% absolute return-on-investment over 25 days (equivalent to +45.0% annualized-return-on-investment) if the stock closes above the $222.50 strike price on the 5/29/2026 options expiration date. 

IBM Corporation (IBM) -- Continuation of Covered Calls Position
The buy/write transaction was:
5/4/2026 Bought 200 IBM shares @ $231.90
5/4/2026 Sold 2 IBM 5/15/2026 $225.00 Call options @ $9.00.  The Implied Volatility of the Calls was 32.3 when this transaction occurred.
5/8/2026 Quarterly ex-dividend of $1.69 per share
5/15/2026 Two IBM Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
5/18/2026 Continued Covered Calls position by selling-to-open two 5/29/2026 $222.50 Calls at $5.60 per share when the price of IBM stock was at $222.78.

A possible overall performance result (including commissions) for this IBM Covered Calls position if the stock price is in-the-money on the 5/29/2026 options expiration date is as follows:
Covered Calls Net Investment: $44,581.34
= ($231.90 - $9.00) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,917.32
= ($9.00 +5.60) * 200 shares - $2.68 commission
(b) Dividend Income: +$338.00
= ($1.69 dividend per share x 200 shares)
(c) Capital Appreciation (If shares assigned at $222.50 strike price at the 5/29/2026 options expiration date): -$1,880.00 = +($222.50 strike price - $231.90 stock purchase price) * 200 shares

Potential Total Net Profit (If IBM shares assigned at $222.50 at the May 29th expiration): +$1,375.32

= (+$2,917.32 options income + $338.00 dividend income - $1,880.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.1%

= +$1,375.32/$44,581.34

Potential Annualized Return-on-Investment: +45.0%

= (+$1,375.32/$44,581.34) * (365/25 days)

Closed Out Covered Calls Position in Wells Fargo & Company

Last Friday, the Covered Calls position in Wells Fargo & Company (ticker WFC) closed out-of-the-money at $73.42 which was below its $78.00 strike price.  When Wells Fargo's stock price advanced to $74.33 in this afternoon's trading session, I decided to close out the position by selling the 300 shares at a net loss of $776.01.

As detailed below, the return-on-investment results are: -3.3% absolute return (equivalent to -87.2% annualized return-on-investment) for the 14 days of this investment.

Wells Fargo & Company (WFC) -- Closed Out Covered Calls Position
The buy/write transaction was:
5/4/2026 Bought 300 Wells Fargo shares @ $80.07
5/4/2026 Sold 3 Wells Fargo 2/13/2026 $84.00 Call options @ $3.82
5/8/2026 Quarterly ex-dividend of $.45 per share
5/15/2026 Three WFC Call options closed out-of-the-money, so the Call options expired and 300 Wells Fargo shares remained in the Covered Calls Advisor Portfolio.
5/18/2026 Closed out this Wells Fargo Covered Calls position by selling the 300 shares at $74.33 per share.

The overall performance results (including commissions) for this Wells Fargo Covered Calls position are as follows:
Covered Calls Net Investment: $23,210.01
= ($80.07 - $2.71) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$810.99
= ($2.71 * 300 shares) - $2.01 commission
(b) Dividend Income: +$135.00
= ($.45 dividend per share x 300 shares)

(c) Capital Appreciation (300 WFC shares sold at $74.33 per share): -$1,722.00
+($74.33 - $80.07) * 300 shares

Total Net Loss: -$776.01

= (+$810.99 options income + $135.00 dividend income - $1,722.00 capital appreciation)

Absolute Return-on-Investment: -3.3%

= -$776.01/$23,210.01

Annualized Return-on-Investment: -87.2%

= (-$776.01/$23,210.01) * (365/14 days)

May 15th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had six Covered Calls positions with May 15th, 2026 options expiration dates.  

• Four Covered Calls positions (Las Vegas Sands, NVIDIA Corporation, Insulet Corporation, and SAP SE ADR) closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices -- so these four positions achieved their maximum potential return-on-investment results.  
• Two positions in IBM Corporation and Wells Fargo & Company closed out-of-the-money so their Call options expired and the shares remain in the Covered Calls Advisor Portfolio.  Early next week I will decide to either sell these shares or continue these Covered Call positions by selling Calls against the shares now held or sell the shares to close out the positions.  When these transactions occur, I will post the details of each position to-date on this blog.  

A summary of results for each of these six positions (listed below in alphabetical order by ticker symbol) is as follows:

1. IBM Corporation (IBM) -- This Covered Calls position closed yesterday at $219.30 which was below its $225.00 strike price, so the two Call options expired and 200 IBM 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 two Call options against the 200 IBM shares currently held or close out the position by selling these shares.

2. Las Vegas Sands Corporation (LVS) -- +1.9% absolute return (equivalent to +39.2% annualized return-on-investment) for the 18 days of this investment.  This Covered Calls position was assigned at the $51.00 strike price since the stock closed in-the-money at $51.16 per share.  The original recent blog post detailing this Covered Calls position is here. 

3. NVIDIA Corporation (NVDA) -- +1.2% absolute return (equivalent to +45.4% annualized return-on-investment) for the 10 days of this investment.  This Covered Calls position was assigned at the $190.00 strike price since the stock closed in-the-money at $225.32 per share.  The original blog post detailing this Covered Calls position is here. 

4. Insulet Corporation (PODD) -- +1.6% absolute return (equivalent to +63.4% annualized return-on-investment) for the 9 days of this investment.  This Covered Call position was assigned at the $145.00 strike price since the stock closed in-the-money at $147.46 per share.  The original blog post detailing this Covered Call position is here. 

5. SAP SE ADR (SAP) -- +2.7% absolute return (equivalent to +60.9% annualized return-on-investment) for the 16 days of this investment.  This Covered Call position was assigned at the $162.50 strike price since the stock closed in-the-money at $169.48 per share.  The original blog post detailing this Covered Call position is here. 

6. Wells Fargo & Company (WFC) --This Covered Calls position closed yesterday at $73.42 which was below its $78.00 strike price, so the three Call options expired and 300 WFC 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 three Call options against the 300 Wells Fargo shares currently held or close out the position by selling these shares.

As always, 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

Early Assignment of Covered Call Position in Amgen Inc.

I was notified via email early this morning by my broker (Schwab) that the one Amgen Inc. (ticker AMGN) May 22nd, 2026 Call option was exercised early.  Amgen's stock price increased from $328.90 when this position was established to $336.23 at yesterday's market close.  The original $2.10 time value in the Call option when the position was established had declined substantially at yesterday's market close. So, with 7 days remaining until the May 22nd, 2026 options expiration date, the owner of this Call exercised their option to buy the 100 shares at the $322.50 strike price in order to receive today's (May 15th) $2.52 per share ex-dividend and I achieved all of the original $2.10 per share time value as profit.  

Although I will not receive the ex-dividend, I am satisfied with the +59.6% annualized-return-on-investment (aroi) result achieved since it exceeds the 47.6% maximum aroi that might have been achieved if this position instead had remained in-the-money and would have therefore been assigned on its upcoming May 22nd options expiration date.   

The post when this Amgen Covered Call position was originally established is here.  

As detailed below, the return-on-investment result for this Amgen Inc. Covered Call position was +0.7% absolute return in 4 days (equivalent to a +59.6% annualized return-on-investment).

Amgen Inc. (AMGN) -- Covered Call Position Closed by Early Assignment

The detailed transactions for this position were as follows:

5/11/2026 Bought 100 Amgen Inc. shares @ $328.90
5/11/2026 Sold 1 AMGN 5/22/2026 $322.50 Call option @ $8.50 per share.
Note: Implied Volatility (IV) of the Call option was 20.2 when this position was transacted which, as preferred, was above the current VIX of 18.4.   
5/15/2026 Early Assignment of this one Amgen Call option, so the Call expired and 100 Amgen shares were sold at the $322.50 strike price.

The overall performance results (including commissions) for this Amgen Covered Call position are as follows:
Covered Call Net Investment: $32,040.67
= ($328.90 - $8.50) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$849.33
= ($8.50 * 100 shares) - $.67 commission
(b) Dividend Income (Amgen Call option exercised early on May 14th, 2026, the last business day prior to the May 15th ex-div date): +$0.00

(c) Capital Appreciation: -$640.00

= ($322.50 strike price - $328.90 stock purchase price) * 100 shares

Total Net Profit: +$209.33

= (+$849.33 option income + $0.00 dividend income - $640.00 capital appreciation)

Absolute Return-on-Investment: +0.7%

= +$209.33/$32,040.67

Equivalent Annualized Return-on-Investment: +59.6%

= (+$209.33/$32,040.67) * (365/4 days)

Established Covered Calls in Pan American Silver Corporation

A net debit buy/write limit order was entered yesterday in Pan American Silver Corporation (ticker PAAS) to buy 300 shares and simultaneously sell 3 Call options at the May 22nd, 2026 options expiration date and at the $60.00 strike price. The net debit limit price for my order was $58.80 and this order was executed when 300 shares were purchased at $62.50 and 3 May 22nd, 2026 Call options were sold for $3.70 per share.  Therefore, a maximum potential time value profit from the Calls of $.1.20 per share = [$3.70 options premium - ($62.50 stock price - $60.00 strike price)] is available for this position.  

This position uses the Covered Calls Advisor's Dividend Capture Strategy since Pan Am Silver has an upcoming quarterly ex-dividend of $.18 per share on May 19th which is prior to the May 22nd options expiration date.  This is equivalent to an absolute annual dividend yield of 1.2% and an equivalent annualized dividend yield of 10.5% = [($.18/$62.50) x (365/10 days to expiration)].  This dividend is included in the detailed return-on-investment calculations below.  Either an early assignment on May 18th (the last trading day prior to the ex-dividend date) or on the May 22nd options expiration date would be desirable 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 August 5th, 2026 is more than two months after the May 22nd options expiration date.  

Pan American Silver Corporation is a large precious metals mining company that generates revenue by exploring for, developing, and operating silver and gold mines across the Americas, while also producing zinc, lead, and copper as by-products. Its business model is built around owning long-life mineral reserves and efficiently extracting and selling metals into global commodity markets, giving investors leveraged exposure to precious metal prices and rising industrial demand for silver. Pan American’s primary competitive advantages include one of the world’s largest silver reserve bases, a diversified portfolio of producing mines, operational scale, and deep technical expertise in mine development and processing, although profitability remains sensitive to commodity prices and geopolitical conditions in Latin America.

Pan American Silver passed all 18 criteria in my "Key Metrics for Comparing Companies" stock screener, which places it in the top 2% of the major U.S. companies considered in this stock screener.  The average target price of the 18 analysts following Pan American Silver is $72.46 which is +15.9% above today's stock purchase price.  The stock screener criteria and the actual numbers for PAAS are shown in the filter breakdown in the table below:

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

•  +2.0% absolute return (equivalent to +105.8% annualized return-on-investment for the next 7 days) if the stock is assigned early (on the last business day prior to the May 19th ex-dividend date); or  
  

• +2.3% absolute return (equivalent to +85.2% annualized return-on-investment over the next 10 days) if the stock is assigned on the May 22nd, 2026 options expiration date.

Pan American Silver Corporation (PAAS) -- New Covered Calls Position

The buy/write transaction was:

5/12/2026 Bought 300 Pan American Silver shares @ $62.50
5/12/2026 Sold 3 PAAS 5/22/2026 $60.00 Call options @ $3.70 per share.
Note: Implied Volatility (IV) of the Call options was at 54.0 when this position was transacted which, as preferred, is above the current VIX of 18.3.  The probability that these Call options will expire in-the-money on the options expiration date was 64.2% when this position was established.   
5/19/2026 Upcoming quarterly ex-dividend of $.18 per share.

Two possible overall performance results (including commissions) for this Pan American Silver Covered Calls position are as follows:
Covered Calls Net Investment: $17,642.01
= ($62.50 - $3.70) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,107.99
= ($3.70 * 300 shares) - $2.01 commission
(b) Dividend Income (If PAAS Call options exercised early on May 18th, 2026, the last business day prior to the May 19th ex-div date): +$0.00; or
(b) Dividend Income (If Pan American Silver stock assigned at the May 22nd, 2026 options expiration): +$54.00
= ($.18 dividend per share x 300 shares)

(c) Capital Appreciation (If PAAS Call options assigned early on May 19th, 2026): -$750.00

+($60.00 strike price - $62.50 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If shares assigned at $60.00 strike price at the 5/19/2026 options expiration): -$750.00
+($60.00 - $62.50) * 300 shares

1. Total Net Profit [If option exercised early (business day prior to the May 19th ex-dividend date)]: +$357.99

= (+$1,107.99 options income + $0.00 dividend income - $750.00 capital appreciation); or

2. Total Net Profit (If Pan American's shares assigned at $60.00 at the May 22nd, 2026 expiration): +$411.99

= (+$1,107.99 options income + $54.00 dividend income - $750.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to the 5/19/2026 ex-dividend date]: +2.0%

= +$357.99/$17,642.01

Potential Annualized Return (If option exercised early): +105.8%

= (+$357.99/$17,642.01) * (365/7 days); or

2. Potential Absolute Return-on-Investment (If Pan American's shares assigned on the May 22nd options expiration date): +2.3%

= +$411.99/$17,642.01

Potential Annualized Return (If PAAS' shares assigned at $60.00 at the 5/22/2026 options expiration date): +85.2%

= (+$411.99/$17,642.01) * (365/10 days)

Either outcome provides a very attractive return-on-investment result for this Pan American Silver Corporation investment.  These returns will be achieved as long as the stock is above the $60.00 strike price at assignment.  However, if the stock declines below the strike price, the breakeven price of $58.62 ($62.50 - $3.70 - $.18) provides 6.2% 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 (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 Pan American Silver Corporation Covered Calls position.

Covered Call Established in Amgen Inc.

Today, a net debit buy/write limit order was entered in Amgen Inc. (ticker AMGN) to buy 100 shares and simultaneously sell 1 Call option at the May 22nd, 2026 weekly options expiration date and at the $322.50 strike price. The net debit limit price for my order was $320.40 and this order was executed when 100 shares were purchased at $328.90 and 1 May 22nd, 2026 Call option was sold for $8.50 per share.  Therefore, a maximum potential time value profit from the Call was $2.10 per share = [$8.50 option premium - ($328.90 stock price - $322.50 strike price)] is available for this position.  

This position uses the Covered Calls Advisor's Dividend Capture Strategy since Amgen has an upcoming quarterly ex-dividend of $2.52 per share on May 15th which is prior to the May 22nd options expiration date.  This is equivalent to an annual dividend yield of 3.1% and an equivalent annualized dividend yield of a very high 25.4% = [($2.52/$328.90) x (365/11 days to expiration)].  This dividend is included in the return-on-investment calculations detailed below.  Either an early assignment on May 14th (the last trading day prior to the ex-dividend date) or on the May 22nd options expiration date would be desirable given the potential annualized return on investment 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 August 4th, 2026 is more than two months after the May 22nd options expiration date.  

Amgen is one of the world’s largest biotechnology companies, generating revenue by discovering, developing, manufacturing, and marketing biologic medicines for serious diseases in areas such as oncology, cardiovascular disease, inflammation, and rare disorders. Its business model combines a portfolio of established blockbuster drugs with a deep pipeline of new therapies and biosimilars, creating recurring cash flow that funds ongoing research, acquisitions, and shareholder returns while supporting long-term growth. Amgen’s key competitive advantages include decades of biologics manufacturing expertise, large-scale global production infrastructure, a strong intellectual property portfolio, and extensive clinical, regulatory, and commercial capabilities that create high barriers to entry and help efficiently scale therapies worldwide.

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

•  +0.7% absolute return (equivalent to +59.6% annualized return-on-investment for the next 4 days) if the stock is assigned early (on the last business day prior to this Friday's May 15th ex-dividend date); or  
  

• +1.4% absolute return (equivalent to +47.6% annualized return-on-investment over the next 11 days) if the stock is assigned on the May 22nd, 2026 options expiration date.

Amgen Inc. (AMGN) -- New Covered Call Position

As shown on the table at the bottom of this post, eight of the nine criteria of my Dividend Capture Strategy are met with this position.  The probability that this Call option will expire in-the-money on the options expiration date was 70.8% when this position was established.   

The buy/write transaction was:

5/11/2026 Bought 100 Amgen Inc. shares @ $328.90
5/11/2026 Sold 1 AMGN 5/22/2026 $322.50 Call option @ $8.50 per share.
Note: Implied Volatility (IV) of the Call option was 20.2 when this position was transacted which, as preferred, is above the current VIX of 18.4.   
5/15/2026 Upcoming quarterly ex-dividend of $2.52 per share.

Two possible overall performance results (including commissions) for this Amgen Covered Call position are as follows:
Covered Call Net Investment: $32,040.67
= ($328.90 - $8.50) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$849.33
= ($8.50 * 100 shares) - $.67 commission
(b) Dividend Income (If Amgen Call option exercised early on May 14th, 2026, the last business day prior to the May 15th ex-div date): +$0.00; or
(b) Dividend Income (If Amgen stock assigned at the May 22nd, 2026 options expiration): +$252.00
= ($2.52 dividend per share x 100 shares)

(c) Capital Appreciation (If Amgen Call option assigned early on May 15th, 2026): -$640.00

= ($322.50 strike price - $328.90 stock purchase price) * 100 shares; or

(c) Capital Appreciation (If shares assigned at $322.50 strike price at the 5/22/2026 options expiration): -$640.00
= ($322.50 - $328.90) * 100 shares

1. Total Net Profit [If option exercised early (business day prior to the May 15th ex-dividend date)]: +$209.33

= (+$849.33 option income + $0.00 dividend income - $640.00 capital appreciation); or

2. Total Net Profit (If Amgen's shares assigned at $322.50 at the May 22nd, 2026 expiration): +$459.33

= (+$849.33 option income + $252.00 dividend income - $640.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to the 5/15/2026 ex-dividend date]: +0.7%

= +$209.33/$32,040.67

Potential Annualized Return (If option exercised early): +59.6%

= (+$209.33/$32,040.67) * (365/4 days); or

2. Potential Absolute Return-on-Investment (If Amgen's shares assigned on the May 22nd options expiration date): +1.4%

= +$459.33/$32,040.67

Potential Annualized Return (If Amgen's shares assigned at the $322.50 strike price on the 5/22/2026 options expiration date): +47.6%

= (+$459.33/$32,040.67) * (365/11 days)

Either outcome would provide a very attractive return-on-investment result for this Amgen investment.  These returns will be achieved as long as the stock is above the $322.50 strike price at assignment.  However, if the stock declines below the strike price, the breakeven price of $317.88 ($328.90 - $8.50 - $2.52) provides 3.4% 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 (see below) must be 'YES' prior to establishing a new Covered Call position using the Covered Calls Advisor's Dividend Capture strategy.  As shown below, eight criteria are achieved for this Amgen Inc. Covered Call position.

May 8th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with May 8th, 2026 options expirations and all three positions (Barrick Mining Corporation, Citigroup Inc., and NVIDIA Corporation) closed with their stock prices in-the-money.  So, their Calls expired with no remaining time value and the Covered Calls were closed out by the stocks being sold at their respective strike prices on their May 8th options expiration date. The return-on-investment details (in alphabetical order) for each position is as follows:

1. Barrick Mining Corporation (B) -- +2.0% absolute return-on-investment (equivalent to +82.0% annualized return-on-investment) for the 9 days of this investment.  This Barrick Mining Covered Call position had a $37.00 strike price and it closed at $43.13 yesterday.  The original blog post showing the details of this position is here. 

2. Citigroup Inc. (C) -- +1.8% absolute return-on-investment (equivalent to +64.3% annualized return-on-investment) for the 10 days of this investment.  This Citigroup Covered Calls position had a $125.00 strike price and it closed at $125.56 yesterday.  The original blog post showing the details of this position is here. 

3. Nvidia Corporation (NVDA) -- +1.3% absolute return-on-investment (equivalent to +61.0% annualized return-on-investment) for the 8 days of this investment.  This NVIDIA Covered Calls position had a $195.00 strike price and it closed at $215.217 yesterday.  The original 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

Covered Call Position Established in Insulet Corporation

Today a short-term Covered Call position in Insulet Corporation (PODD) was established when one hundred shares were purchased at $153.06 and one May 15th, 2026 Call option was sold at $10.30 per share at the $145.00 strike price.  The buy/write net debit limit order at $142.76 was executed, so the time value was $2.24 per share [$10.30 Call option premium - ($153.06 stock purchase price - $145.00 strike price)].  Insulet's first quarter earnings were reported after market close yesterday, so there is no earnings report prior to the May 15th options expiration date.  I consider today's very negative stock price decline of over 8% after a beat-and-raise quarter (that also included an increase to their 2026 guidance) to be an unjustified overreaction. But given my current cautious market outlook, an in-the-money Covered Calls position was established with a 73.4% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Insulet Corporation makes, sells, and develops its proprietary Omnipod System, an automated insulin pump for insulin-dependent diabetics in the U.S. and Internationally.  Their business operates on a razor-and-blade model centered on its Omnipod system, pairing its low-cost controller (the razor hardware) with its disposable (replaced every 3 days) insulin pods (the consumable blades) that generate recurring, high-margin revenue and strong cash flow visibility. Financially, the company has delivered a decade of consistent high growth, with revenue expanding from under $1B in 2020 to ~$2.7B in 2025 (roughly a 25–30% annual growth rate in recent years), including its 10th consecutive year of 20%+ growth and accelerating ~30% growth in 2025. Profitability has scaled alongside revenue, with gross margins around ~70%+ and operating leverage improving as volumes increase, though near-term earnings can fluctuate due to reinvestment in sales and R&D. Looking forward, management continues to guide to ~20%+ revenue growth with even faster EPS expansion, driven by international expansion, penetration of the large Type 2 diabetes market, and deeper integration with leading automated insulin delivery ecosystems such as Dexcom's G7 and Abbott's FreeStyle Libre. Overall, Insulet offers investors a rare combination of durable recurring revenue, strong historical execution, and a long runway for growth in an underpenetrated global market.

Insulet is highly rated by analysts.  The average target price of the 25 analysts currently covering the company is +120.5% above today's stock purchase price.  In addtion, Morningstar has a 5-star strong buy rating and CFRA a 4-star buy rating.

As detailed below, a potential return-on-investment result is +1.6% absolute return-on-investment (equivalent to +63.4% annualized return-on-investment over the next 9 days) if the stock is assigned on the May 15th, 2026 options expiration date.

Insulet Corporation (PODD) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
5/6/2026 Bought 100 Insulet Corp. shares @ $153.06
5/6/2026 Sold 1 PODD 5/15/2026 $145.00 Call option @ $10.30 per share
Note: the Implied Volatility of the Call was 54.0 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.

A possible overall performance result (including commission) for this Insulet Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $14,276.67
= ($153.06 - $10.30) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,029.33
= ($10.30 * 100 shares) - $.67 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If Insulet shares assigned at the $145.00 strike price on the options expiration date): -$806.00
+($145.00 strike price - $153.06 stock purchase price) * 100 shares

Total Net Profit (If Insulet shares assigned at the $145.00 strike price at the 5/15/2026 expiration date): +$223.33

= (+$1,029.33 option income + $0.00 - $806.00 capital appreciation)

Absolute Return-on-Investment (If PODD shares assigned at the $145.00 strike price on the May 15th, 2026 options expiration date): +1.6%

= +$223.33/$14,276.67

Annualized Return-on-Investment (If Insulet stock assigned at the $145.00 strike at the 5/15/2026 options expiration date): +63.4%

= (+$223.33/$14,276.67) * (365/9 days)

Established Covered Calls Position in Wells Fargo & Company

A Covered Calls position was established in Wells Fargo & Company (ticker symbol WFC) yesterday when my buy/write limit order was executed -- 300 shares were purchased at $80.07 and 3 May 15th, 2026 Call options were sold at $2.71 at the $78.00 strike price.  The corresponding extrinsic value (i.e. time value) was $.64 per share [$2.71 Call options premium - ($80.07 stock purchase price - $78.00 strike price)], all of which will be profit if the stock is assigned (either by early assignment on the day prior to the May 8th ex-dividend date or at the May 15th options expiration date). The Implied Volatility of the Call options was 25.7 and also, as preferred, the next earnings report on July 14th, 2026 is well after the May 15th options expiration date.

At today's purchase price, the upcoming ex-dividend of $.45 has a 2.2% annualized dividend yield.  So, this short-term (only 11 days until options expiration) position was established to take advantage of the potential to achieve a satisfactory annualized return-on-investment in a position that meets all nine criteria of the Covered Calls Advisor's Dividend Capture Strategy (see table at end of this post).      

Most companies in the Financial Sector (such as Wells Fargo) 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 Wells Fargo Covered Calls position continues the Covered Calls Advisor's Dividend Capture Strategy of often selling in-the-money monthly Covered Calls for one of six mega-cap 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, in which case 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 Covered Calls Advisor is often very pleased since the Dividend Capture Strategy criteria are designed such that the annualized return-on-investment for early assignment normally exceeds the Covered Calls Advisor's minimum threshold (as is the case with this Wells Fargo position).  So far, applying this approach has provided attractive annualized return results -- better than would be achieved if Covered Calls positions for these bank stocks were held in the Covered Calls Advisor Portfolio during the other two non-dividend paying months each quarter.  

Two potential return-on-investment results for this position are highlighted below (including the possibility of early assignment since the ex-dividend is prior to the May 15 options expiration date).  Given the Covered Calls Advisor's current Neutral overall market sentiment, a moderately in-the-money Covered Calls position was established with a probability of 71.2% that the stock will be in-the-money, and therefore assigned (i.e. sold), on the May 15th, 2026 options expiration date.  

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

•  +0.8% absolute return (equivalent to +74.7% annualized return-on-investment for the next 4 days) in the event that the stock is assigned early (business day prior to its May 8th, 2026 ex-dividend date); OR 

• +1.4% absolute return (equivalent to +46.5% annualized return-on-investment over the next 11 days) if the stock is assigned on the May 15th options expiration date.

Wells Fargo & Company (WFC) -- New Covered Calls Position
The buy/write transaction was:
5/4/2026 Bought 300 Wells Fargo shares @ $80.07
5/4/2026 Sold 3 Wells Fargo 2/13/2026 $84.00 Call options @ $3.82
5/8/2026 Upcoming quarterly ex-dividend of $.45 per share

Two possible overall performance results (including commissions) for this Wells Fargo Covered Calls position are as follows:
Covered Calls Net Investment: $23,210.01
= ($80.07 - $2.71) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$810.99
= ($2.71 * 300 shares) - $2.01 commission
(b) Dividend Income (If option exercised early on May 7th, the day prior to the May 8th ex-div date): +$0.00; or
(b) Dividend Income (If Wells Fargo stock assigned at the May 15th, 2026 options expiration; so the $.45 dividend is captured): +$135.00
= ($.45 dividend per share x 300 shares)

(c) Capital Appreciation (If Wells Fargo Call options assigned early on May 8th, 2026): -$621.00
+($78.00 strike price - $80.07 stock purchase price) * 300 shares; or
(c) Capital Appreciation (If shares assigned at $78.00 strike price at options expiration): -$621.00
+($78.00 - $80.07) * 300 shares

1. Total Net Profit [If option exercised on 5/7/2026 (business day prior to the 5/8/2026 ex-dividend date)]: +$189.99

= (+$810.99 options income + $0.00 dividend income - $621.00 capital appreciation); or

2. Total Net Profit (If Wells Fargo shares assigned at $78.00 at the 5/15/2026 expiration): +$324.99

= (+$810.99 options income + $135.00 dividend income - $621.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised early on 2/6/2026]: +0.8%

= +$189.99/$23,210.01

Annualized Return-on-Investment (If option exercised early): +74.7%

= (+$189.99/$23,210.01) * (365/4 days); or

2. Absolute Return-on-Investment (If Wells Fargo shares assigned at $78.00 at the 5/15/2026 options expiration): +1.4%

= +$324.99/$23,210.01

Annualized Return-on-Investment (If Wells Fargo shares assigned at $78.00 at the 5/15/2026 options expiration date): +46.5%

= (+$324.99/$23,210.01) * (365/11 days)

Either outcome provides a good return-on-investment result for this Wells Fargo investment.  These returns will be achieved as long as the stock is above the $78.00 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $76.91 ($80.07 - $2.71 - $.45) provides a 3.9% 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 Wells Fargo position, all nine criteria are met.

Established Covered Calls in NVIDIA Corporation

Today I established a 10-day Covered Calls position in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $187.66 was executed and the time value was $2.34 per share [$10.33 Call options premium - ($197.99 stock purchase price - $190.00 strike price)].  An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $190.00 strike price) on the 5/15/2026 options expiration date was 72.2% when this transaction was executed.  Importantly, this expiration date is prior to the next quarterly earnings report which is on May 20th, 2026. 

The current average target price of Wall Street analysts is now $264.95 (+33.8% above today's purchase price).  Today's position continues my recent history of establishing NVIDIA Covered Call positions with expiration dates every week.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $190.00 strike price) and therefore assigned on its May 15th, 2026 options expiration date is +1.2% absolute return-on-investment (equivalent to +45.4% annualized return-on-investment for the next 10 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
5/5/2026 Bought 200 NVIDIA Corporation shares at $197.99.

5/5/2026 Sold 2 NVIDIA 5/15/2026 $190.00 Call options @ $10.33 per share.  The Implied Volatility of these Calls was 40.8 when this position was established, which is well above (as preferred) the VIX which was 17.4.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $37,533.34
= ($197.99 - $10.33) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,064.66
= ($10.33 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $190.00 strike price) on the 5/15/2026 options expiration date): -$1,598.00
+($190.00 strike price - $197.99 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $190.00 strike price on the 5/15/2026 options expiration date): +$466.66

= (+$2,064.66 options income + $0.00 dividend income - $1,598.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $190.00 strike price on the 5/15/2026 options expiration date): +1.2%

= (+$466.66/$37,533.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $190.00 strike price on the 5/15/2026 options expiration date): +45.4%
= (+$466.66/$37,533.34) * (365/10 days)

Established Covered Calls Position in IBM Corporation

Today a short-term Covered Calls position was established in IBM Corp. (ticker symbol IBM) when the Covered Calls Advisor's buy/write limit order was executed -- 200 shares were purchased at $231.90 and two May 15th, 2026 Call options were sold at $9.00 per share at the $225.00 strike price.  Therefore, a net debit price of $222.90 which is a time value of $2.10 per share [$9.00 Call options price - ($231.90 stock price - $225.00 strike price)].  This is a moderately in-the-money position since its probability of closing in-the-money on the 5/15 options expiration date was 69.2% when this position was established.  

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 $1.69 per share (2.9% annualized dividend yield) goes ex-dividend this Friday (May 8th), which is prior to the May 15th options expiration date.  Either result would be attractive since they both substantially 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 IBM's next quarterly earnings report on July 22nd, 2026 is after this month's options expiration date.

IBM passed every criterion in my "Sustainable Competitive Advantage" stock screener, which places it in the top 2% of the 1,377 major U.S. companies considered in this stock screener.  The average target price of the 20 analysts following IBM is $294.90 which is +27.2% above today's stock purchase price.  The stock screener criteria and the actual numbers for IBM are shown in the filter breakdown in the table below:  

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

•  +0.9% absolute return (equivalent to +85.9% annualized return for the next 4 days) if the stock is assigned early (business day prior to the May 8th ex-dividend date); OR 

• +1.7% absolute return (equivalent to +56.4% annualized return over the next 11 days) if the stock is assigned on the May 15th, 2026 options expiration date.

IBM Corporation (IBM) -- New Covered Calls Position
The buy/write transaction was:
5/4/2026 Bought 200 IBM shares @ $231.90
5/4/2026 Sold 2 IBM 5/15/2026 $225.00 Call options @ $9.00.  The Implied Volatility of the Calls was 32.3 when this transaction occurred.
5/8/2026 Upcoming quarterly ex-dividend of $1.69 per share

Two possible overall performance results (including commissions) for this IBM Covered Calls position are as follows:
Covered Calls Net Investment: $44,581.34
= ($231.90 - $9.00) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,799.66
= ($9.00 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on May 7th, the last business day prior to the May 8th ex-div date): +$0.00; or
(b) Dividend Income (If IBM stock assigned at the May 15th, 2026 options expiration date): +$338.00
= ($1.69 dividend per share x 200 shares)
(c) Capital Appreciation (If IBM Call options assigned early): -$1,380.00
+($225.00 strike price - $231.90 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $225.00 strike price at options expiration): -$1,380.00 = +($225.00 - $231.90) * 200 shares

1. Total Net Profit [If options exercised early]: +$419.66

= (+$1,799.66 options income +$0.00 dividend income -$1,380.00 capital appreciation); or

2. Total Net Profit (If IBM shares assigned at $225.00 at the May 15th expiration): +$757.66

= (+$1,799.66 options income +$338.00 dividend income -$1,380.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised early on May 7th (business day prior to the 5/8/2026 ex-dividend date)]: +0.9%

= +$419.66/$44,581.34

Annualized Return-on-Investment (If option exercised early): +85.9%

= (+$419.66/$44,581.34) * (365/4 days); or

2. Absolute Return-on-Investment (If IBM shares assigned at $225.00 at the May 15th, 2026 options expiration): +1.7%

= +$757.66/$44,581.34

Annualized Return-on-Investment (If IBM shares assigned at $225.00 at the May 15th options expiration date): +56.4%

= (+$757.66/$44,581.34) * (365/11 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.  All nine criteria are achieved for this IBM Covered Calls position.

May 1st Option Expiration Results

The Covered Calls Advisor Portfolio had one Covered Call position in Cheniere Energy Inc. (LNG) with a May 1st, 2026 options expiration.  The stock closed in-the-money yesterday, so the Call option was closed with no remaining time value, so the 100 LNG shares were sold at the strike price. The return-on-investment details are as follows:

Cheniere Energy Inc. (LNG) -- +2.1% absolute return-on-investment (equivalent to +44.8% annualized return-on-investment) for the 17 days of this investment.  This Cheniere Energy position had a $250.00 strike price and the stock closed at $270.12 yesterday.  The original blog post showing the details of this position is here. 

I welcome 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