Covered Call Position Established in NVIDIA Corporation

A short-term in-the-money Covered Call position was established this morning in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $196.80 was executed when the stock price dropped to $210.71 per share and one hundred shares at that price and one September 4th, 2026 Call option was simultaneously sold at the $200.00 strike price at $13.91 per share, which provides a $3.20 per share = [$13.91 Call option premium received - ($210.71 stock purchase price - $200.00 option strike price)] time value profit potential. An in-the-money Covered Call position was established for this new position with the probability that NVIDIA's stock will close in-the-money on the 9/4/2026 options expiration date was 71.0% when this transaction was executed.  I am violating my own preference since NVIDIA's Q2 earnings report is after market close tomorrow (before the options expiration date), but I am limiting my exposure with a strike price 5% below the stock price and also only 100 NVIDIA shares .  

As detailed below, a potential return-on-investment result is +1.6% absolute return-on-investment (equivalent to +59.2% annualized return-on-investment for the next 10 days) if NVIDIA's share price is in-the-money (i.e. above the $200.00 strike price) and therefore assigned on its August 4th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
8/25/2026 Bought 100 NVIDIA Corporation shares at $210.71.

8/25/2026 Sold 1 NVIDIA 9/4/2026 $200.00 Call option @ $13.91 per share.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $19,680.67
= ($210.71 - $13.91) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,390.33
= ($13.91 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $200.00 strike price at expiration): -$1,071.00
+($200.00 strike price - $210.71 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $200.00 strike price at the options expiration date): +$319.33
= (+$1,390.33 option income + $0.00 dividend income - $1,071.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.6%
= +$319.33/$19,680.67
Potential Annualized Return-on-Investment: +59.2%
= (+$319.33/$19,680.67) * (365/10 days)