Established Covered Calls in Las Vegas Sands Corporation

This morning a short-term Covered Calls position was established in Las Vegas Sands Corporation (ticker LVS). Three hundred shares were purchased at $56.50 and three February 20th, 2026 monthly Call options were sold at the $55.00 strike price at $2.36 per share--a buy/write net debit transaction of $54.14 per share which provides a $.86 per share time value profit potential.  

Las Vegas Sands was one of only 37 companies that passed all criteria in my "Key Metrics for Comparing Companies" stock screener, which places it in the top 1.4% of the 2,643 major U.S. companies considered in this stock screener.  The average target price of the 18 analysts following Las Vegas Sands Corp. is $69.36 which is +22.7% above today's stock purchase price.  The stock screener criteria and the actual numbers for LVS are shown in the filter breakdown in the table below:

As detailed below, a potential return-on-investment result is +1.6% absolute return-on-investment (equivalent to +58.5% annualized return-on-investment for the next 10 days) if the Las Vegas Sands Corporation share price is in-the-money (i.e. above the $55.00 strike price) and therefore assigned on its February 20th, 2026 options expiration date.

 
Las Vegas Sands Corporation (LVS) -- New Covered Calls Position 

The Buy/Write transaction was as follows:
2/10/2026 Bought 300 shares of Las Vegas Sands Corporation @ $56.50 per share.  
2/10/2026 Sold 3 LVS February 20th, 2026 $55.00 Call options @ $2.36 per share.  The Implied Volatility of these Call options was 42.6 and the probability that the Calls will expire in-the-money on the options expiration date was 63.0% when this transaction was executed today. 

A possible overall performance result (including commissions) for this Las Vegas Sands Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $15,974.01
= ($56.50 - $2.36) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$705.99
= ($2.36 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Las Vegas Sands Corporation shares assigned at $55.00 strike price at expiration): -$450.00
+($55.00 - $56.50) * 300 shares

Total Net Profit Potential (If 300 Las Vegas Sands shares assigned at $55.00 strike price at expiration): +$255.99
= (+$705.99 options income +$0.00 dividend income -$450.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.6%
= +$255.99/$15,974.01
Potential Annualized Return-on-Investment: +58.5%
= (+$255.99/$15,974.01) * (365/10 days)

Covered Call Position Established in RTX Corporation

Today a Covered Call position was established in RTX Corporation (ticker symbol RTX). In early 2020, Raytheon merged with United Technologies (after they spun-out their Carrier and Otis Elevators divisions) making the new Raytheon a very strong company with approximately equal parts defense and commercial business revenues.  Three years ago, they changed their corporate name to RTX Corporation. 

RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers by designing, developing, and providing advanced capabilities in integrated air and missile defense, smart weapons, and missiles.

My net debit buy/write limit order was executed when 100 shares were purchased at $198.01 and 1 February 27th, 2026 weekly Call option was sold at $6.37 per share at the $195.00 strike price.  The time value (aka extrinsic value) in the Call option was $3.36 per share [$6.37 Call option premium - ($198.01 stock price - $195.00 strike price)] when this transaction executed.  There is also an upcoming ex-dividend on Feb. 20th at $.68 per share (7.9% above last year's dividend rate for the same quarter).  Two potential return-on-investment results for this position are detailed below and include the possibility of early exercise since the ex-dividend is prior to the February 27th, 2026 options expiration date.  Given my current Overall Market Meter outlook of Neutral, a slightly in-the-money Covered Call position was established and the probability that the Call will remain in-the-money on the options expiration date was 58.8% when this transaction occurred.  Important to the Covered Calls Advisor, RTX reported their Q2 2025 earnings report two weeks ago, so there is no intervening earnings report prior to the February 27th options expiration date.  

As detailed below, two potential return-on-investment results are: 

•  +1.7% absolute return (equivalent to +58.1% annualized return-on-investment for the next 11 days) if the stock is assigned early (on the last business day prior to the February 20th ex-dividend date); OR 

• +2.1% absolute return (equivalent to +42.7% annualized return-on-investment over the next 18 days) if the stock is assigned on the February 27th options expiration date.

RTX Corporation (RTX) -- New Covered Call Position

The buy/write transaction was:
2/9/2026 Bought 100 RTX shares @ $198.01
2/9/2026 Sold 1 RTX 2/27/2026 $195.00 Call option @ $6.37 per share
2/20/2026 Upcoming quarterly ex-dividend of $.68 per share

Two possible overall performance results (including commissions) for this RTX Corp. Covered Call position are as follows:
RTX Covered Call Cost Basis: $19,164.67
= ($198.01 - $6.37) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$636.33
= ($6.37 * 100 shares) - $.67 option income
(b) Dividend Income (If option exercised early on Feb. 19th, 2026, the last trading day prior to the February 20th ex-div date): +$0.00; or
(b) Dividend Income (If RTX stock assigned on the February 27th, 2026 options expiration date): +$68.00
= ($.68 dividend per share x 100 shares)
(c) Capital Appreciation (If RTX Call option assigned early on Feb. 19th): -$301.00
+($195.00 strike price - $198.01 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $195.00 strike price at options expiration): -$301.00
+($195.00 - $198.01) * 100 shares

1. Total Net Profit [If option exercised on Feb. 19th (last business day prior to the Feb. 20th ex-dividend date)]: +$335.33

= (+$636.33 options income + $0.00 dividend income - $301.00 capital appreciation); or

2. Total Net Profit (If RTX shares assigned at $195.00 strike price at the Feb. 27th, 2026 options expiration date): +$403.33

= (+$636.33 + $68.00 - $301.00)

1. Absolute Return (If option exercised early): +1.7%

= +$335.33/$19,164.67

Annualized Return-on-Investment (If option exercised early): +58.1%

= (+$335.33/$19,164.67) * (365/11 days); or

2. Absolute Return (If RTX shares assigned at the $195.00 strike price at the Feb. 27th, 2026 options expiration date): +2.1%

= +$403.33/$19,164.67

Annualized Return-on-Investment (If RTX shares assigned at the $195.00 at the 2/27/2026 options expiration date): +42.7%

= (+$403.33/$19,164.67) x (365/18 days)

These return-on-investment results will be achieved as long as the stock is above the $195.00 strike price on the options expiration date.  If the stock declines below the strike price, the breakeven price of $190.96 ($198.01 stock purchase price - $6.37 option income - $.68 dividend income) provides 3.6% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this RTX Corporation position, all nine criteria were met.

Continuation of Covered Calls Position in Sea Limited ADR

My Covered Calls position in Sea Limited ADR (ticker SE) closed out-of-the-money on last Friday's options expiration date, so the Call options expired and the shares remained in the Covered Calls Advisor Portfolio.  This morning, I decided to continue this Covered Calls position by selling two Sea Limited Call options against the shares currently held.  The transactions-to-date for these positions as well as the potential return-on-investment results if this position is in-the-money and therefore assigned on its options expiration date is as follows:

Sea Limited ADR (SE) -- Continued this Covered Calls Position
The original simultaneous buy/write transaction was as follows:
12/1/2025 Bought 200 Sea Ltd. shares @ $137.15
12/1/2025 Sold 2 SE 12/19/2025 $130.00 Call options @ $9.65 per share
Note: the Implied Volatility of the Calls was 43.0 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.2.
12/19/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/26/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $2.38 per share when the price of Sea Ltd. stock was at $126.96.
1/9/2026 Sea Ltd. Covered Calls rolled out by buying-to-close the two 1/9/2026 $130.00 Calls at $4.25 per share and simultaneously selling two 1/23/2026 $130.00 Calls at $6.70 per share, so a net credit of $2.45 per share.
1/23/2026 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
1/27/2026 Continued Covered Calls position by selling-to-open two 2/6/2026 $127.00 Calls at $3.30 per share when the price of Sea Ltd. stock was at $125.41.
2/6/2026 Two Sea Ltd. Calls expired out-of-the-money at $108.54, so the 200 shares remained in the Covered Calls Advisor Portfolio.
2/9/2026 Continued Covered Calls position by selling-to-open two 2/20/2026 $110.00 Calls at $3.90 per share when the price of Sea Ltd. stock was at $109.35.  This Covered Calls position is being continued because I remain bullish on the company and am now attempting to reduce the current unrealized loss and improve the position results closer to breakeven. 

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if the stock price is in-the-money and therefore assigned at the $110.00 strike price on the options expiration date is as follows:

Covered Calls Cost Basis: $25,501.34
= ($137.15 - $9.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$4,329.30
= ($9.65 + $2.38 - $4.25 + $6.70 + $3.30 + $3.90) * 200 shares - $6.70 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $110.00 strike price at the 2/20/2026 options expiration date): -$5,430.00
+($110.00 strike price - $137.15 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $110.00 strike price on the 2/20/2026 options expiration date): -$1,100.70

= (+$4,329.30 options income + $0.00 dividend income - $5,430.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $110.00 strike price on the 2/20/2026 options expiration date): -4.3%

= -$1,100.70/$25,501.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $110.00 strike price at the 2/20/2026 options expiration date): -19.4%

= (-$1,100.70/$25,501.34) * (365/81 days)

February 6th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with the February 6th, 2026 weekly options expiration date.  Three positions (Citigroup Inc., Dell Technologies Inc., and NVIDIA Corporation) closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  The other position in Sea Limited ADR closed out-of-the-money so its Calls expired and its shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions (in alphabetical order) is as follows:

1. Citigroup Inc. (C) -- +1.8% absolute return (equivalent to +45.7% annualized return-on-investment) for the 14 days of this investment.  This Covered Calls position was assigned at the $111.00 strike price since the stock closed in-the-money at $122.69 per share.  The blog post detailing this Covered Calls position is here. 

2. Dell Technologies Inc. (DELL) -- -2.5% absolute return (equivalent to -15.7% annualized return-on-investment) for the 57 days of this investment.  This Covered Calls position was assigned at the $115.00 strike price since the stock closed in-the-money at $121.05 per share.  The most recent blog post detailing this Covered Calls position is here. 

3. NVIDIA Corporation (NVDA) -- +4.0% absolute return (equivalent to +86.4% annualized return-on-investment) for the 17 days of this investment.  This Covered Call position was assigned at the $180.00 strike price since the stock closed in-the-money at $185.41 per share.  The original blog post detailing this Covered Call position is here.  NVIDIA's +7.9% stock price move yesterday (Friday) was fortuitous since it move the stock price from out-of-the-money to in-the-money -- so the maximum potential return-on-investment was achieved for this position. 

4. Sea Limited ADR (SE) -- This Covered Calls position closed yesterday at $108.54 which was below its $127.00 strike price, so the two Call options expired and 200 SE shares now remain in the Covered Calls Advisor Portfolio.  The most recent 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 Sea Ltd. shares currently held or close out the position by selling the 200 shares.   

The +1.9% move in the S&P 500 yesterday raised the index to only 1.0% below its all-time high price, and I'm happy to report that thanks primarily to Covered Calls, the total value of my Schwab investment accounts (brokerage account plus IRAs) is now at an all-time high.  Remember, because of the tax-free nature of capital gains maintained in IRA accounts, Covered Calls can be an especially attractive investing strategy when done in IRAs (see #11 in my blog post article here).  

I'm now 75 years old, and Covered Calls investing has been very good to me (and therefore also to my family) over the past several decades. So, I am investing more conservatively now (i.e. selecting in-the-money strike prices) than I did when I was younger and focused more on trying to maximize my return-on-investments via at-the-money and out-of-the-money strikes.  That is primarily because I used to have a higher risk tolerance since I had so many more years to recover from bear market losses.  Now I have fewer years remaining to recover large losses, thus my more conservative investing approach now.          

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

Cheers!

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net