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)