October 31st, 2025 Options Expiration Results

The Covered Calls Advisor Portfolio had five Covered Calls positions with October 31st, 2025 options expiration dates.  Three positions (KraneShares CSI China Internet ETF, NVIDIA Corporation, and Uber Technologies Inc.) closed in-the-money so their Call options expired and the shares were called away (i.e. sold) at their respective strike prices.  Two positions (Chipotle Mexican Grill Inc. and Signet Jewelers Ltd.) were out-of-the-money.  With about 10 minutes before the market close, I unwound (i.e. closed out) the Chipotle position by buying-to-close the Calls while simultaneously selling-to-close the shares.  With Signet, I decided not to do anything -- so the Call options expired and the 200 Signet shares currently remain in my portfolio. 

    

A summary of the results for each of these five positions are as follows:

1. KraneShares CSI China Internet ETF (KWEB) -- +1.7% absolute return (equivalent to +42.6% annualized return-on-investment) for the 15 days of this investment.  This Covered Calls position closed in-the-money yesterday at $39.95 per share which was above its $38.00 strike price, so the maximum potential annualized profit was achieved for this position.  The original post detailing this position is here.  

2. NVIDIA Corporation (NVDA) -- +2.1% absolute return (equivalent to +55.8% annualized return-on-investment) for the 14 days of this investment.  This Covered Calls position closed in-the-money yesterday at $202.49 per share which was above its $172.50 strike price, so the maximum potential annualized profit was achieved for this position.  The original post detailing this position is here.  

3. Uber Technologies Inc. (UBER) -- +2.0% absolute return (equivalent to +51.8% annualized return-on-investment) for the 14 days of this investment.  This Covered Call position closed in-the-money yesterday at $96.50 per share which was above its $89.00 strike price, so the maximum potential annualized profit was achieved for this position.  The original post detailing this position is here. 

4. Chipotle Mexican Grill Inc. (CMG) -- -14.1% absolute return (a -$2,082.68 net loss for this investment).  Chipotle stock tanked after its earnings report miss this week.  I wish I had followed my own advice to avoid holding stocks on the day of their earnings reports.  Lesson learned; so I will be more diligent in checking for intervening earnings reports prior to entering all future Covered Calls positions.    

5. Signet Jewelers Ltd. (SIG) -- Yesterday afternoon, with the stock price out-of-the-money, I decided to let the two Signet Call options expire and to therefore retain the 200 Signet shares.  Early next week I will either continue this Covered Calls position by selling two more Signet Calls or I will close out the position by selling the 200 shares. The original post detailing this position is here. 

I welcome your feedback at my email address shown below on any topics related to this blog post specifically or anything else related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Early Assignment of Covered Calls Position in Morgan Stanley

I was notified via email early this morning by my broker (Schwab) that the two Morgan Stanley (ticker MS) November 7th, 2025 Call options were exercised yesterday.  Morgan Stanley's stock price increased from $158.34 when this position was established to $165.26 at yesterday's market close.  The original $1.54 time value in the Calls when the position was established had declined on yesterday's market to close to $0.00.  So, with seven days remaining until the November 7th, 2025 options expiration date, the owner of these Calls exercised their option to buy the 200 shares at the $152.50 strike price in order to receive today's $1.00 per share ex-dividend.  Although I will not receive the ex-dividend, I am pleased with the +41.2% annualized-return-on-investment (aroi) result achieved since it slightly exceeds the maximum aroi of 38.3% that might have been achieved if this position instead had remained in-the-money and would therefore be assigned on the Nov. 7th options expiration date.   

The post when this Morgan Stanley Covered Calls position was originally established is here.  

As detailed below, the return-on-investment result for this Morgan Stanley Covered Calls position was +1.0% absolute return in 9 days (equivalent to a +41.2% annualized return-on-investment).

Morgan Stanley (MS) -- Covered Calls Position Closed by Early Assignment

The buy/write transaction was:
10/22/2025 Bought 200 Morgan Stanley shares @ $158.34
10/22/2025 Sold 2 Morgan Stanley 11/7/2025 $152.50 Call options @ $7.38
Note: the Implied Volatility of the Call options was 29.3 when this buy/write transaction was executed.
10/30/2025 Two Morgan Stanley Calls were exercised on the last business day prior to today's October 31st, 2025 ex-dividend date, so the Call options expired and the 200 MS shares were sold at the $152.50 strike price.

The overall performance results (including commissions) for this Morgan Stanley Covered Calls position are as follows:
Covered Calls Cost Basis: $30,193.34
= ($158.34 - $7.38) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,474.66
= ($7.38 * 200 shares) - $1.34 commission
(b) Dividend Income (Two Call options exercised early on October 30th, the last business day prior to the 10/31/2025 ex-div date): +$0.00

(c) Capital Appreciation (Morgan Stanley Call options assigned early on Oct. 30th): -$1,168.00
+($152.50 strike price - $158.34 stock purchase price) * 200 shares

Total Net Profit: +$306.66

= (+$1,474.66 options income + $0.00 dividend income - $1,168.00 capital appreciation); or

Absolute Return-on-Investment: +1.0%

= +$306.66/$30,193.34

Annualized Return-on-Investment: +41.2%

= (+$306.66/$30,193.34) * (365/9 days)

Covered Call Position Established in Microsoft Corporation

This afternoon at 2:38pm, my Covered Call buy/write net debit limit order was executed. After Microsoft's stellar quarterly earnings report after the market close yesterday, I was very surprised at the stock price decline this morning and I placed a buy/write order at a net debit limit price of $508.56 (at the $512.50 strike price and at the short-term November 7th expiration date). I was not expecting the order to execute, but the stock price continued to decline by over 3.5% from yesterday's closing price when the transaction was executed. One hundred Microsoft shares were purchased at $522.64 and 1 November 7th, 2025 $512.50 Call option was sold at $14.08 per share -- a net debit of $508.56 per share.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $3.94 per share [$14.08 Call option premium - ($522.64 stock purchase price - $512.50 strike price)].  The probability of assignment on the options expiration date was 70.0% when this transaction occurred.

As detailed below, a potential outcome for this Microsoft Corporation investment is +0.8% absolute return-on-investment for the next 8 days (equivalent to +35.3% annualized-return-on-investment) if the stock closes above the $512.50 strike price on the November 7th, 2025 options expiration date.

Microsoft Corporation (MSFT) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
10/30/2025 Bought 100 shares of Microsoft stock @ $522.64 per share.  
10/30/2025 Sold 1 MSFT November 7th, 2025 $512.50 Call option @ $14.08 per share.  The Implied Volatility of the Call was 25.3 when this transaction was executed.

A possible overall performance result (including commissions) if this position is assigned on its 11/7/2025 option expiration date is as follows:
Microsoft Covered Call Net Investment: $50,856.67
= ($522.64 - $14.08) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,407.33
= ($14.08 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Microsoft stock is above the $512.50 strike price at the November 7th option expiration date): -$1,014.00
= ($512.50 - $522.64) * 100 shares

Potential Total Net Profit (If assigned at expiration): +$393.33
= (+$1,407.33 option income + $0.00 dividend income - $1,014.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.8%
= +$393.33/$50,856.67
Potential Equivalent Annualized-Return-on-Investment: +35.3%
= (+$393.33/$50,856.67) * (365/8 days)

Established Covered Calls in NVIDIA Corporation

This morning a two-week Covered Calls position was established in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $190.96 was executed by simultaneously purchasing two hundred shares at $204.46 and selling two November 14th, 2025 weekly Call options at the $195.00 strike price at $13.50 per share, which provides a $4.04 per share = [$13.50 Call options premium received - ($204.46 stock purchase price - $195.00 options strike price)] time value profit potential.  This continues my process of establishing ongoing NVIDIA in-the-money Covered Calls for each weekly options expiration date.  The probability that NVIDIA's stock will close in-the-money on the 11/14/2025 options expiration date was 67.4% and this expiration avoids NVIDIA's upcoming earnings report on November 19th, 2025. 

As detailed below, a potential return-on-investment result is +2.1% absolute return-on-investment (equivalent to +51.4% annualized return-on-investment for the next 15 days) if NVIDIA's share price is in-the-money (i.e. above the $195.00 strike price) and therefore assigned on its November 14th, 2025 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
10/30/2025 Bought 200 NVIDIA Corporation shares at $204.46.

10/30/2025 Sold 2 NVIDIA 11/14/2025 $195.00 Call options @ $13.50 per share.  The Implied Volatility of these Calls was 47.8% when this position was established.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $38,193.34
= ($204.46 - $13.50) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,698.66
= ($13.50 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned at the $195.00 strike price at expiration): -$1,892.00
+($195.000 strike price - $204.46 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares in-the-money and therefore assigned at the $195.00 strike price at the options expiration date): +$806.66
= (+$2,698.66 options income + $0.00 dividend income - $1,892.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.1%
= +$806.66/$38,193.34
Potential Annualized Return-on-Investment: +51.4%
= (+$806.66/$38,193.34) * (365/15 days)