Covered Call Position Established in NVIDIA Corporation

A new Covered Call position was established this morning in NVIDIA Corporation (ticker NVDA).  A slightly out-of-the-money position was established when one hundred shares were purchased at $217.73 and one October 2nd, 2026 Call option was simultaneously sold at the $220.00 strike price at $4.83 per share. The probability that NVIDIA's stock will close in-the-money on the 10/2/2026 options expiration date was 42.7% when this transaction was executed. Two potential return-on-investment results are detailed below -- one if the stock price is unchanged at $217.73 at the options expiration date and another if the stock rises and closes above the $220 strike price on the 10/2/2026 options expiration date.

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
9/17/2026 Bought 100 NVIDIA Corporation shares at $217.73.

9/17/2026 Sold 1 NVIDIA 10/2/2026 $220.00 Call option @ $4.83 per share. The Implied Volatility of the Call was 32.5 when this position was established. 

Two possible overall performance results (including commissions) for this NVIDIA Corporation Covered Call position are as follows:
Covered Call Net Investment: $21,290.67
= ($217.73 - $4.83) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$482.33
= ($4.83 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares price unchanged at $217.73 on the Oct. 2nd, 2026 options expiration date): +0.00
+($217.73 stock closing price at expiration - $217.73 stock purchase price) * 100 shares; OR 

(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $220.00 strike price at the 10/2/2026 options expiration): +$227.00
+($220.00 strike price - $217.73 stock purchase price) * 100 shares 

1. Total Net Profit Potential (If 100 NVIDIA shares price unchanged at $217.73 on the Oct. 2nd, 2026 options expiration date): +$482.33

= (+$482.33 option income + $0.00 dividend income + $0.00 capital appreciation)

2. Total Net Profit Potential (If 100 NVIDIA shares are in-the-money and therefore assigned at the $220.00 strike price at the options expiration date): +$709.33
= (+$482.33 option income + $0.00 dividend income + $227.00 capital appreciation)

1. Potential Absolute Return-on-Investment: (If 100 NVIDIA shares price unchanged at $217.73 on the Oct. 2nd, 2026 options expiration date): +2.3%
= +$482.33/$21,290.67
Potential Equivalent Annualized Return-on-Investment (If 100 NVIDIA shares price unchanged at $217.73 on the Oct. 2nd, 2026 options expiration date): +55.1%
= (+$482.33/$21,290.67) * (365/15 days)

2. Potential Absolute Return-on-Investment (If 100 NVIDIA shares are in-the-money and therefore assigned at the $220.00 strike price at the options expiration date): +3.3%
= +$709.33/$21,290.67
Potential Equivalent Annualized Return-on-Investment (If 100 NVIDIA shares are in-the-money and therefore assigned at the $220.00 strike price at the options expiration date): +81.1%
= (+$709.33/$21,290.67) * (365/15 days)

Closed Out Covered Call Position in NVIDIA Corporation

Last Friday, a Covered Call position in NVIDIA Corporation (ticker NVDA) closed out-of-the-money at $218.29 which was below its $220.00 strike price.  Today I decided to close out this position by selling the 100 NVDA shares when the market price was $215.88.

As detailed below, the return-on-investment results are: +1.3% absolute return (equivalent to +24.0% annualized return-on-investment) for the 20 days of this investment.

NVIDIA Corporation (NVDA) -- Closed Out this Covered Call Position

These Covered Call position transactions were as follows:
8/27/2026 Bought 100 NVIDIA Corporation shares at $222.88.

8/27/2026 Sold 1 NVIDIA 9/11/2026 $220.00 Call option @ $9.56 per share when the stock price was at $225.40. The Implied Volatility of the Call was 34.3 when this option was sold and the probability that the position will close in-the-money and therefore be assigned on the options expiration date was 62.6%.   
9/10/2026 Ex-dividend of $.25 per share

9/11/2026 NVIDIA's shares closed at $218.29 which was below the $220.00 strike price, so the Call option expired and 100 NVIDIA shares remained in the Covered Calls Advisor Portfolio.  

9/16/2026 Closed out this Covered Call position by selling the 100 NVIDIA shares at $215.88.

The overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,331.33
= ($222.88 - $9.56) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$955.33
= ($9.56 * 100 shares) - $.67 commission
(b) Dividend Income: +$25.00 = $.25 per share x 100 shares
(c) Capital Appreciation: (100 shares sold at $215.88 per share): -$700.00
+($215.88 stock selling price - $222.88 stock purchase price) * 100 shares

Total Net Profit: +$280.33
= (+$955.33 option income + $25.00 dividend income - $700.00 capital appreciation)

Absolute Return-on-Investment: +1.3%
= +$280.33/$21,331.33
Annualized Return-on-Investment: +24.0%
= (+$280.33/$21,331.33) * (365/20 days)

Established Covered Calls in Newmont Corporation

Shortly before noon today and with the spot price of gold at $4288 per ounce, a short-term Covered Calls position at my net debit limit order price of $116.20 executed in Newmont Corporation (ticker symbol NEM) when 200 shares were purchased at $122.33 and 2 September 25th, 2026 Call options were sold at $6.13 per share at the $118.00 strike price.  The potential time value profit was $1.80 per share [$6.13 Call options premium - ($122.33 stock purchase price - $118.00 strike price)].  An in-the-money Covered Calls position was established with the probability of the stock closing in-the-money (and therefore being assigned) on the 9/25/2026 options expiration date was 67.9%.  

Newmont Corporation is the world's largest gold-mining company, with major operations in North America, South America, Africa, and Australia. Its portfolio is centered on gold, with added production of copper, silver, zinc, and lead as byproducts.  Newmont generates substantial free cash flow when gold prices are favorable, but its earnings are highly sensitive to gold prices, production costs, operating performance, and geopolitical risks.  For us investors, it is best viewed as a large-scale, diversified gold producer offering significant leverage to higher gold prices, but with considerably more commodity and operational risk than a typical large-cap technology company. 

As preferred, there is no quarterly earnings report prior to the options expiration date.  CFRA has a Strong Buy rating on Newmont and it also appeared on my Key Metrics for Comparing Companies stock screener by passing all criteria therein:

As detailed below, a potential return-on-investment result is: +1.5% absolute return (equivalent to +56.3% annualized return-on-investment for the next 10 days) if the stock is assigned on the Sept 25th, 2026 options expiration date.

Newmont Corporation (NEM) -- New Covered Calls Position
The buy/write transaction was:
9/15/2026 Bought 200 Newmont Corp shares @ $122.33.
9/15/2026 Sold 2 Newmont 9/25/2026 $118.00 Call options @ $6.13.
Note: the Implied Volatility of the Call options was 43.9% when this buy/write transaction was executed.  I like to sell Calls when their stock is oversold and the Implied Volatility moves higher.  With Newmont's RSI(2) at only 9.6, this is the case with this Covered Calls position.

A possible overall performance result (including commissions) for this Newmont Corporation Covered Calls position is as follows:
Covered Calls Cost Basis: $23,241.34
= ($122.33 - $6.13) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,224.66
= ($6.13 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00

(c) Capital Appreciation (If shares assigned at the $118.00 strike price at the 9/25/2026 options expiration): -$866.00

+($118.00 - $122.33) * 200 shares

Total Net Profit (If Newmont Corp. shares assigned at $118.00 strike price at the Sept 25th, 2026 expiration): +$358.66

= (+$1,224.66 options income + $0.00 dividend income - $866.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.5%

= +$358.66/$23,241.34

Potential Annualized Return-on-Investment: +56.3%

= (+$358.66/$23,241.34) * (365/10 days)

September 11th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Call positions with September 11th, 2026 options expirations.  Two positions (one in NVIDIA Corporation and one in SK hynix Inc. ADR) closed with their stock prices in-the-money.  So, their Calls expired with no remaining time value and the Covered Calls were closed out by the stocks being sold at their respective strike prices on their September 11th options expiration date.  A second position in NVIDIA with a $220.00 strike price closed yesterday out-of-the-money at $218.29, so the Call option expired and 100 shares now remain in the Covered Calls Advisor Portfolio.  The return-on-investment details for each position is as follows:

1. Nvidia Corporation (NVDA) -- +8.1% absolute return-on-investment (equivalent to +184.6% annualized return-on-investment) for the 16 days of this investment.  This NVIDIA Covered Call position had a $215.00 strike price and it closed at $218.29 yesterday.  The original blog post showing the details of this position is here (see the first NVIDIA position shown on this blog post). 

2. SK hynix Inc. ADR (SKHY) -- +3.0% absolute return-on-investment (equivalent to +73.1% annualized return-on-investment) for the 15 days of this investment.  This SK hynix Covered Calls position had a $150.00 strike price and it closed at $190.07 yesterday.  The original blog post showing the details of this position is here.

3. Nvidia Corporation (NVDA) -- This Covered Call position closed yesterday at $218.29 which was below its $220.00 strike price, so the Call option expired and 100 NVIDIA shares remain in the Covered Calls Advisor Portfolio.  Early next week I will either continue this Covered Call position by selling another Call against the 100 shares owned or sell the shares to close out the position.  The original blog post detailing this position is here (see the second NVIDIA position shown on this blog post). 

I look forward to receiving your emails with your questions/comments at the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net