Continuation of Covered Calls Positions in Bank of America, NVIDIA, and Cigna

The Covered Calls Advisor Portfolio had three Covered Calls positions with March 13th, 2026 (last Friday) options expiration dates.  All three positions (Bank of America Corporation, NVIDIA Corporation, and The Cigna Group) closed out-of-the-money so their Calls expired and the shares remained in the Covered Calls Advisor Portfolio.

This morning I decided to extend all three of these Covered Calls positions by two weeks by selling March 27th, 2026 Call options against the shares currently held in the Covered Calls Advisor Portfolio.  

As detailed below, the potential return-on-investment results if the stocks close in-the-money on their March 27th expiration date are:

1. Bank of America Corporation -- -0.9% absolute return-on-investment (equivalent to -9.6% annualized roi) for the 35 days of this investment.

2. NVIDIA Corporation -- +8.2% absolute return-on-investment (equivalent to +106.7% annualized roi) for the 28 days of this investment.

3. The Cigna Group -- +2.5% absolute return-on-investment (equivalent to +25.2% annualized roi) for the 36 days of this investment.

The details for each of these three positions (in alphabetical order) are as follows:

1. Bank of America Corporation (BAC) -- Continuation of this Covered Calls Position

The buy/write transaction was as follows:
2/20/2026 Bought 500 shares of Bank of America Corp. stock @ $51.91 per share 
2/20/2026 Sold 5 BAC March 13th, 2026 $50.00 Call options @ $2.61 per share
Note: The Implied Volatility of these Calls was 30.2 when this position was established.
3/6/2026 Ex-dividend of $.28 per share
3/13/2026 Bank of America stock closed out-of-the-money at $46.72 (i.e. below the $50.00 strike price), so the Call options expired and the 500 shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 5 March 27th, 2026 $47.50 Call options at $1.08 per share when the stock price was trading at $47.39.  The Implied Volatility of these Calls was 34.4% when this transaction was made.

A possible overall performance result (including commissions) if the stock is assigned on the 3/27/2026 options expiration date would be as follows:
Covered Calls Cost Basis: $24,653.35
= ($51.91 - $2.61) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,838.30
= ($2.61 + $1.08) * 500 shares - $6.70 commissions
(b) Dividend Income: +$140.00
= $.28 per share x 500 shares
(c) Capital Appreciation (If shares above the $47.50 strike price at the March 27th options expiration): -$2,205.00
= ($47.50 - $51.91) * 500 shares

Potential Net Loss (If BAC price is above the $47.50 strike price at the March 27th options expiration): -$226.70
= (+$1,838.30 options income + $140.00 dividend income - $2,205.00 capital appreciation)

Absolute Return-on-Investment (If BAC price is above $47.50 strike price at the March 27th options expiration): -0.9%   = -$226.70/$24,653.35
Equivalent Annualized Return-on-Investment (If assigned on the 3/27/2026 options expiration date): -9.6%
= (-$226.70/$24,653.35) * (365/35 days)

2. NVIDIA Corporation (NVDA) -- Continuation of this Covered Calls Position

Today's buy/write net limit order transaction was as follows:
2/27/2026 Bought 200 NVIDIA Corporation shares at $180.02.

2/27/2026 Sold 2 NVIDIA 3/13/2026 $185.00 Call options @ $4.35 per share.  The Implied Volatility of these Calls was 44.8 when this position was established, well above (as preferred) the VIX which was at 20.7.  
3/11/2026 Ex-dividend of $.01 per share.  This miniscule dividend amount for the largest market cap company is ludicrous. 🤣

3/13/2026 NVIDIA Corporation stock closed out-of-the-money at $180.25 (i.e. below the $185.00 strike price), so the Call options expired and the 200 NVIDIA shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 2 March 27th, 2026 $185.00 Call options at $5.20 per share when the stock price was trading at $184.09.  The Implied Volatility of these Calls was 42.6% when this transaction was made.

A possible overall performance result (including commissions) if this NVIDIA Corporation Covered Calls position is in-the-money on its 3/27/2026 expiration date is as follows:
Covered Calls Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,877.32
= ($4.35 + $5.05) x 200 shares) - $2.68 commissions
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $185.00 strike price) on the 3/27/2026 options expiration date): +$996.00
+($185.00 strike price - $180.02 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $185.00 strike price on the 3/27/2026 options expiration date): +$2,875.32

= (+$1,877.32 options income + $2.00 dividend income + $996.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $185.00 strike price on the 3/27/2026 options expiration date): +8.2%

= (+$2,875.32/$35,135.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $185.00 strike price on the 3/11/2026 options expiration date): +106.7%

= (++$2,875.32/$35,135.34) * (365/28 days)

3. The Cigna Group (CI) -- Continuation of this Covered Call Positionon

The buy/write transaction today was as follows:
2/19/2026 Bought 100 Cigna Group shares @ $287.06
2/19/2026 Sold 1 Cigna 3/13/2026 $275.00 Call option @ $15.56 per share.  
3/5/2026 Upcoming quarterly ex-dividend of $1.56 per share

3/13/2026 The Cigna Group stock closed out-of-the-money at $267.19 (i.e. below the $275.00 strike price), so the Call option expired and the 100 Cigna shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Call position by selling 1 March 27th, 2026 $270.00 Call option at $6.70 per share when the stock price was trading at $269.45.  The Implied Volatility of this Call options was 38.4% when this transaction was made.

A possible overall performance result (including commissions) if this Cigna Covered Call position is in-the-money on its 3/27/2026 expiration date is as follows:
Covered Call Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commissions

Net Profit Components:
(a) Option Income: +$2,224.66
= ($15.56 +6.70) * 100 shares - $1.34 commissions
(b) Dividend Income: +$156.00
= ($1.56 dividend per share x 100 shares)

(c) Capital Appreciation (If Cigna shares assigned at the $270.00 strike price at the options expiration): -$1,706.00

+($270.00 - $287.06) * 100 shares

Total Net Profit (If Cigna shares assigned at the March 27th, 2026 options expiration date): +$674.66

= (+$2,224.66 option income + $156.00 dividend income - $1,706.00 capital appreciation)

Potential Absolute Return-on-Investment (If Cigna shares assigned at the March 27th, 2026 options expiration date): +2.5%

= +$674.66/$27,150.67

Potential Annualized Return-on-Investment: +25.2%

= (+$674.66/$27,150.67) *(365/36 days)

March 13th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with March 13th, 2026 options expiration dates.  All three positions (Bank of America Corporation, NVIDIA Corporation, and The Cigna Group) closed out-of-the-money so their Calls expired and the shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions (in alphabetical order) is as follows:

1. Bank of America Corporation (BAC) -- This Covered Calls position closed yesterday at $46.72 which was below its $50.00 strike price, so the five Call options expired and 500 Bank of America shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Calls position by selling five Call options against the 500 BofA shares currently held or close out the position by selling these shares. 

2. NVIDIA Corporation (NVDA) -- This Covered Calls position closed yesterday at $180.25 which was below its $185.00 strike price, so the two Call options expired and 200 NVIDIA shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Calls position by selling two Call options against the 200 NVIDIA shares currently held or close out the position by selling these shares. 

3. The Cigna Group (CI) -- This Covered Call position closed yesterday at $267.19 which was below its $275.00 strike price, so the one Call option expired and 100 Cigna shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Call position by selling a Call option against the 100 Cigna shares currently held or close out the position by selling these shares. 

During the past month, I have been reducing my long exposure in favor of a higher allocation to cash (i.e. money market fund).  The S&P 500 performance year-to-date is -2.9% and my portfolio is +0.3%.  

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

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls in NVIDIA Corporation

In this afternoon's trading session, I established a short-term Covered Calls position of 11 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $166.76 was executed by simultaneously purchasing two hundred shares at $179.56 and selling two March 20th, 2026 Call options at $12.80 per share and at the $170.00 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 $170.00 strike price) on the 3/20/2026 options expiration date was 70.1% when this transaction was executed. 

NVIDIA reported their Q4 earnings after the market close twelve days ago. They substantially beat analysts' estimates on all relevant metrics including both earnings and revenue (which at $68.1 billion was 72.4% above the comparable quarter last year). In addition, their next quarter guidance at $78 billion is 76.9% above last year's result.  NVIDIA's stock has reacted negatively since then, but I agree with the numerous sell-side equity research firms that raised their NVIDIA post-earnings target prices.  The average target price of Wall Street analysts is now $261.97 (+45.9% above today's purchase price).  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $170.00 strike price) and therefore assigned on its March 20th, 2026 options expiration date is +1.9% absolute return-on-investment (equivalent to +64.5% annualized return-on-investment for the next 11 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
3/9/2026 Bought 200 NVIDIA Corporation shares at $179.56.

3/9/2026 Sold 2 NVIDIA 3/20/2026 $170.00 Call options @ $12.80 per share.  The Implied Volatility of these Calls was 56.3 when this position was established, which is well above (as preferred) the VIX which was 27.6.  
3/11/2026 Ex-dividend of $.01 per share.  This miniscule dividend amount for the #1 largest market cap company is ludicrous. 🤣

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $33,353.34
= ($179.56 - $12.80) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,558.66
= ($12.80 * 200 shares) - $1.34 commission
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $170.00 strike price) on the 3/20/2026 options expiration date): -$1,912.00
+($170.00 strike price - $179.56 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $170.00 strike price on the 3/20/2026 options expiration date): +$648.66

= (+$2,558.66 options income + $2.00 dividend income - $1,912.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $170.00 strike price on the 3/20/2026 options expiration date): +1.9%

= (+$648.66/$33,353.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $170.00 strike price on the 3/20/2026 options expiration date): +64.5%
= (+$648.66/$33,353.34) * (365/11 days)

Closed Covered Calls Position in Delta Air Lines Inc.

On last Friday's options expiration date, the Covered Calls position in Delta Air Lines Inc. (ticker DAL) closed out-of-the-money, so its Call options expired and the 400 shares remained in the Covered Calls Advisor Portfolio. Early in today's trading session I closed out this position at a net loss of $2,663.68 by selling the 400 shares of Delta at $57.24.  Along with other airlines companies, Delta's stock price has been punished because of the spike in oil prices since the start of the Iran War. The transactions history for this position and the associated return-on-investment results are detailed below.

Delta Air Lines Inc. (DAL) -- Closed Out Covered Calls Position
The buy/write transaction was:
2/17/2026 Bought 400 Delta Air Lines Inc. shares @ $70.07.
2/17/2026 Sold 4 Delta 3/6/2026 $65.00 Call options @ $5.99 per share.  The Implied Volatility of these Calls was 44.5% when this buy/write transaction occurred, which as preferred is well above the current 20.8% for the S&P 500 Volatility Index (i.e. VIX).
2/26/2026 Quarterly ex-dividend of $.1875 per share.

3/6/2026 Delta closed out-of-the-money at $59.01 per share, so the Call options expired and the 400 Delta shares remained in the Covered Calls Advisor Portfolio.

3/9/2026 Closed out this Delta Covered Calls position by selling 400 DAL shares at $57.24.

The overall performance results (including commissions) for this Delta Air Lines Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $25,634.68
= ($70.07 - $5.99) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$2,393.32
= ($5.99 * 400 shares) - $2.68 commission
(b) Dividend Income: +$75.00
= ($.1875 dividend per share x 400 shares)

(c) Capital Loss: -$5,132.00

+($57.24 stock sales price - $70.07 stock purchase price) * 400 shares

Total Net Loss: -$2,663.68

= (+$2,393.32 options income + $75.00 dividend income - $5,132.00 capital appreciation)

Absolute Return-on-Investment: -10.4%

= -$2,663.68/$25,634.68

Annualized Return-on-Investment (If Delta's shares assigned at $65.00 at the March 6th, 2026 expiration): -189.6%

= (-$2,663.68/$25,634.68) * (365/20 days)