Covered Calls Position Established in Schlumberger N.V.

Today a Covered Calls position was established in Schlumberger N.V. (ticker symbol SLB) when my December 12th, 2025 at the $34.50 strike price buy/write limit order was executed.  For Schlumberger (now named SLB), 400 shares were purchased at $35.61 and 4 December 12th, 2025 Call options were sold at $1.57 per share at the $34.50 strike price.  Given my current "Neutral" Overall Market Meter outlook, a moderately in-the-money Covered Calls positions was established.  The probability that the position will be in-the-money on the options expiration date was 66.8% when this position was established.  

SLB has an intervening ex-dividend of $.285 per share (a 3.2% annual dividend yield) on December 3rd, 2025 so the potential results detailed below includes the possibility of a position close out by early assignment if the stock moves significantly higher by the market close on December 2nd (the last business day prior to the ex-dividend date).  Also, the average Target Price of the Wall Street analysts that cover SLB is $44.92 (+26.1% above today's $35.61 stock purchase price). 

Two potential return-on-investment results are: 

•  +1.3% absolute return (equivalent to +69.4% annualized return for the next 7 days) if the stock is assigned early (on the last business day prior to the December 3rd, 2025 ex-dividend date); OR 

• +2.2% absolute return (equivalent to +49.5% annualized return over the next 16 days) if the stock is assigned on the December 12th options expiration date.

SLB N.V. (SLB) -- New Covered Calls Position
The buy/write transaction was:
11/26/2025 Bought 400 SLB shares @ $35.61
11/26/2025 Sold 4 SLB 12/12/2025 $34.50 Call options @ $1.57
Note: the Time Value (aka Extrinsic Value) in the Call options was $.46 per share = [$1.57 Call options premium - ($35.61 stock price - $34.50 strike price)]
12/3/2025 Upcoming quarterly ex-dividend of $.285 per share

Two possible overall performance results (including commissions) for this SLB Covered Calls position are as follows:
Covered Calls Net Investment: $13,618.68
= ($35.61 - $1.57) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$625.32
= ($1.57 * 400 shares) - $2.68 commission
(b) Dividend Income (If option exercised early on 12/2/2025, the business day prior to the December 3rd ex-div date): +$0.00; or
(b) Dividend Income (If SLB stock assigned at the Dec. 12th, 2025 expiration): +$114.00
= ($.285 dividend per share x 400 shares)

(c) Capital Appreciation (If SLB Call options assigned early on Dec. 3rd, 2025): -$444.00
+($34.50 strike price - $35.61 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If SLB shares assigned at $34.50 strike price at the Dec. 12th options expiration date): -$444.00
+($34.50 - $35.61) * 400 shares

1. Total Net Profit [If option exercised early on Dec. 3rd, 2025]: +$181.32

= (+$625.32 options income +$0.00 dividend income -$444.00 capital appreciation); or

2. Total Net Profit (If SLB shares assigned at $34.50 strike price at the Dec. 12th, 2025 expiration): +$295.32

= (+$625.32 options income + $114.00 dividend income - $444.00 capital appreciation)

1. Absolute Return-on-Investment (early assignment): +1.3%

= +$181.32/$13,618.68

Annualized Return-on-Investment (If options assigned early): +69.4%

= (+$181.32/$13,618.68) * (365/7 days); or

2. Absolute Return-on-Investment (If SLB shares assigned at $34.50 at the 12/12/2025 options expiration date): +2.2%

= +$295.32/$13,618.68

Annualized Return-on-Investment (If SLB shares assigned at $34.50 at the Dec. 12th, 2025 options expiration date): +49.5%

= (+$295.32/$13,618.68) * (365/16 days)

Either outcome provides a very attractive annualized return-on-investment result for this SLB N.V. investment.  These returns will be achieved as long as the stock is above the $34.50 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $33.755 ($35.61 - $1.57 - $.285) provides 5.2% downside protection below today's stock purchase price.

Continuation of Covered Calls Position in Capital One Financial Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in Capital One Financial Corporation (ticker COF) which expired last Friday with the stock at $207.87 which was below the $212.50 strike price.  Today this position was continued by rolling out to the December 5th, 2025 monthly options expiration at the same $212.50 strike price by selling-to-open two Calls at $3.76 per share when Capital One's stock price was $211.45.  

As detailed below, a potential outcome for this Capital One investment if the stock is in-the-money and therefore assigned on the options expiration date is +3.1% absolute return-on-investment over 22 days (equivalent to +50.7% annualized-return-on-investment) if the stock closes above the $212.50 strike price on the 12/5/2025 options expiration date.  The details showing this potential return-on-investment result are as follows:

Capital One Financial Corporation (COF) -- Continuation of Covered Calls Position

The buy/write transaction was:
11/13/2025 Bought 200 Capital One Financial shares @ $217.40
11/13/2025 Sold 2 Capital One 11/21/2025 $212.50 Call options @ $7.00
11/17/2025 Quarterly ex-dividend of $.80 per share
11/21/2025 Two COF Call options expired out-of-the-money and the 200 Capital One shares remain in the Covered Calls Advisor Portfolio.

11/25/2025 Continued this Capital One Covered Calls position by selling two 12/5/2025 $212.50 Calls at $3.76 when the stock price was $211.45.

A possible overall performance result (including commissions) for this Capital One Covered Calls position if the stock closes in-the-money (and is therefore assigned) on its 12/5/2025 options expiration date is as follows:
Covered Calls Net Investment: $43,481.34
= ($217.40 - $7.00) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,149.32
= ($7.00 + $3.76) * 200 shares - $2.68 commissions
(b) Dividend Income: +$160.00
= ($.80 dividend per share x 200 shares)

(c) Capital Appreciation (If Capital One Call options assigned on the 12/5/2025 options expiration date): -$980.00
+($212.50 strike price - $217.40 stock purchase price) * 200 shares

Total Net Profit (If Capital One shares assigned at $212.50 at the 12/5/2025 expiration): +$1,329.32

= (+$2,149.32 options income + $160.00 dividend income - $980.00 capital appreciation)

Absolute Return-on-Investment (If Capital One shares assigned at $212.50 at the 12/5/2025 options expiration): +3.1%

= +$1,329.32/$43,481.34

Annualized Return-on-Investment (If Capital One shares assigned at $212.50 at the 12/5/2025 options expiration date): +50.7%

= (+$1,329.32/$43,481.34) * (365/22 days)

Continuation of Covered Calls Position in Corning Inc.

The Covered Calls Advisor Portfolio has a Covered Calls position in Corning Inc. (ticker GLW) which expired last Friday with the stock at $79.46 which was below the $85.00 strike price.  Today this position was continued by rolling down-and-out to the December 5th, 2025 monthly options expiration at the $83.00 strike price ($85.00 strike previously) by selling-to-open two Calls at $1.90 per share when Corning's stock price was $81.86.  

As detailed below, a potential outcome for this Corning investment if the stock is in-the-money and therefore assigned on the options expiration date is +1.6% absolute return-on-investment over 24 days (equivalent to +24.8% annualized-return-on-investment) if the stock closes above the $83.00 strike price on the 12/5/2025 options expiration date.  The details showing this potential return-on-investment result are as follows:

Corning Inc. (GLW) -- Continuation of Covered Calls Position
The buy/write transaction was:
11/11/2025 Bought 200 Corning Inc. shares @ $87.75
11/11/2025 Sold 2 Corning 11/21/2025 $85.00 Call options @ $3.95
Note: the Implied Volatility of the Call options was 38.5 when this buy/write transaction was executed.
11/14/2025 Quarterly ex-dividend of $.28 per share
11/21/2025 Two Corning 11/21/2025 $85.00 Calls expired out-of-the-money, so the 200 GLW shares remain in the Covered Calls Advisor Portfolio.
11/24/2025 Continued this Corning Covered Calls position by rolling down-and-out by selling two 12/5/2025 $83.00 Call options at $1.90 per share (when the stock price was $81.86).

A possible overall performance result (including commissions) for this Corning Inc. Covered Calls position is as follows:
Covered Calls Cost Basis: $16,761.34
= ($87.75 - $3.95) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,167.32
= ($3.95 + $1.90) * 200 shares - $2.68 commission
(b) Dividend Income: +$56.00 = $.28 dividend per share x 200 shares

(c) Capital Appreciation (If shares assigned at $83.00 strike price at the 12/5/2025 options expiration): -$950.00

+($83.00 - $87.75) * 200 shares

Total Net Profit (If Corning shares assigned at $83.00 strike price at the Dec. 5th, 2025 expiration): +$273.32

= (+$1,167.32 + $56.00 - $950.00)

Potential Absolute Return-on-Investment (If Corning shares assigned at $83.00 at the December 5th, 2025 options expiration): +1.6%

= +$273.32/$16,761.34

Potential Annualized Return-on-Investment (If Corning shares assigned at the Dec. 5th, 2025 options expiration date): +24.8%

= (+$273.32/$16,761.34) * (365/24 days)

November 21st, 2025 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with November 21st, 2025 options expiration dates.  Only one of the positions (Charles Schwab Corporation) closed in-the-money and was therefore assigned while three positions (Capital One Financial, Corning, and Microsoft) closed out-of-the-money.  Their Calls expired and the shares now remain in the Covered Calls Advisor Portfolio.  I will decide early next week for each position whether to sell the stocks at a net loss or continue the Covered Calls by selling future Calls against the positions.  

The detailed results for the one position closed out yesterday (Schwab) is as follows:

Charles Schwab Corporation (SCHW) -- +1.2% absolute return (equivalent to +27.2% annualized return-on-investment) for the 16 days of this investment.  This Covered Calls position closed in-the-money yesterday at $90.51 per share which was above its $90.00 strike price, so the maximum potential annualized profit was achieved for this position.  The original post detailing this position is here. 

As always, I welcome your feedback at my email address shown below on any topics related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net