Established Covered Calls in NVIDIA Corporation

A short-term Covered Calls position of 8 days duration was established today in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $199.36 was executed and the time value was $3.14 per share [$8.25 Call options premium - ($207.61 stock purchase price - $202.50 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 $202.50 strike price) on the 7/24/2026 options expiration date was 64.5% when this transaction was executed.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $202.50 strike price) and therefore assigned on its July 24th, 2026 options expiration date is +1.6% absolute return-on-investment (equivalent to +71.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/16/2026 Bought 200 NVIDIA Corporation shares at $207.61.

7/16/2026 Sold 2 NVIDIA 7/24/2026 $202.50 Call options @ $8.25 per share.  The Implied Volatility of these Calls was 42.5 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 16.3.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $39,873.34
= ($207.61 - $8.25) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,648.66
= ($8.25 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $202.50 strike price) on the 7/24/2026 options expiration date): -$1,022.00
+($202.50 strike price - $207.61 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $202.50 strike price on the 7/24/2026 options expiration date): +$626.66

= (+$1,648.66 options income + $0.00 dividend income - $1,022.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $202.50 strike price on the 7/24/2026 options expiration date): +1.6%

= (+$626.66/$39,873.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +71.7%
= (+$626.66/$39,873.34) * (365/8 days)