May 15th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had six Covered Calls positions with May 15th, 2026 options expiration dates.  

• Four Covered Calls positions (Las Vegas Sands, NVIDIA Corporation, Insulet Corporation, and SAP SE ADR) closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices -- so these four positions achieved their maximum potential return-on-investment results.  
• Two positions in IBM Corporation and Wells Fargo & Company closed out-of-the-money so their Call options expired and the shares remain in the Covered Calls Advisor Portfolio.  Early next week I will decide to either sell these shares or continue these Covered Call positions by selling Calls against the shares now held or sell the shares to close out the positions.  When these transactions occur, I will post the details of each position to-date on this blog.  

A summary of results for each of these six positions (listed below in alphabetical order by ticker symbol) is as follows:

1. IBM Corporation (IBM) -- This Covered Calls position closed yesterday at $219.30 which was below its $225.00 strike price, so the two Call options expired and 200 IBM 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 IBM shares currently held or close out the position by selling these shares.

2. Las Vegas Sands Corporation (LVS) -- +1.9% absolute return (equivalent to +39.2% annualized return-on-investment) for the 18 days of this investment.  This Covered Calls position was assigned at the $51.00 strike price since the stock closed in-the-money at $51.16 per share.  The original recent blog post detailing this Covered Calls position is here. 

3. NVIDIA Corporation (NVDA) -- +1.2% absolute return (equivalent to +45.4% annualized return-on-investment) for the 10 days of this investment.  This Covered Calls position was assigned at the $190.00 strike price since the stock closed in-the-money at $225.32 per share.  The original blog post detailing this Covered Calls position is here. 

4. Insulet Corporation (PODD) -- +1.6% absolute return (equivalent to +63.4% annualized return-on-investment) for the 9 days of this investment.  This Covered Call position was assigned at the $145.00 strike price since the stock closed in-the-money at $147.46 per share.  The original blog post detailing this Covered Call position is here. 

5. SAP SE ADR (SAP) -- +2.7% absolute return (equivalent to +60.9% annualized return-on-investment) for the 16 days of this investment.  This Covered Call position was assigned at the $162.50 strike price since the stock closed in-the-money at $169.48 per share.  The original blog post detailing this Covered Call position is here. 

6. Wells Fargo & Company (WFC) --This Covered Calls position closed yesterday at $73.42 which was below its $78.00 strike price, so the three Call options expired and 300 WFC 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 three Call options against the 300 Wells Fargo shares currently held or close out the position by selling these shares.

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

Early Assignment of Covered Call Position in Amgen Inc.

I was notified via email early this morning by my broker (Schwab) that the one Amgen Inc. (ticker AMGN) May 22nd, 2026 Call option was exercised early.  Amgen's stock price increased from $328.90 when this position was established to $336.23 at yesterday's market close.  The original $2.10 time value in the Call option when the position was established had declined substantially at yesterday's market close. So, with 7 days remaining until the May 22nd, 2026 options expiration date, the owner of this Call exercised their option to buy the 100 shares at the $322.50 strike price in order to receive today's (May 15th) $2.52 per share ex-dividend and I achieved all of the original $2.10 per share time value as profit.  

Although I will not receive the ex-dividend, I am satisfied with the +59.6% annualized-return-on-investment (aroi) result achieved since it exceeds the 47.6% maximum aroi that might have been achieved if this position instead had remained in-the-money and would have therefore been assigned on its upcoming May 22nd options expiration date.   

The post when this Amgen Covered Call position was originally established is here.  

As detailed below, the return-on-investment result for this Amgen Inc. Covered Call position was +0.7% absolute return in 4 days (equivalent to a +59.6% annualized return-on-investment).

Amgen Inc. (AMGN) -- Covered Call Position Closed by Early Assignment

The detailed transactions for this position were as follows:

5/11/2026 Bought 100 Amgen Inc. shares @ $328.90
5/11/2026 Sold 1 AMGN 5/22/2026 $322.50 Call option @ $8.50 per share.
Note: Implied Volatility (IV) of the Call option was 20.2 when this position was transacted which, as preferred, was above the current VIX of 18.4.   
5/15/2026 Early Assignment of this one Amgen Call option, so the Call expired and 100 Amgen shares were sold at the $322.50 strike price.

The overall performance results (including commissions) for this Amgen Covered Call position are as follows:
Covered Call Net Investment: $32,040.67
= ($328.90 - $8.50) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$849.33
= ($8.50 * 100 shares) - $.67 commission
(b) Dividend Income (Amgen Call option exercised early on May 14th, 2026, the last business day prior to the May 15th ex-div date): +$0.00

(c) Capital Appreciation: -$640.00

= ($322.50 strike price - $328.90 stock purchase price) * 100 shares

Total Net Profit: +$209.33

= (+$849.33 option income + $0.00 dividend income - $640.00 capital appreciation)

Absolute Return-on-Investment: +0.7%

= +$209.33/$32,040.67

Equivalent Annualized Return-on-Investment: +59.6%

= (+$209.33/$32,040.67) * (365/4 days)

Established Covered Calls in Pan American Silver Corporation

A net debit buy/write limit order was entered yesterday in Pan American Silver Corporation (ticker PAAS) to buy 300 shares and simultaneously sell 3 Call options at the May 22nd, 2026 options expiration date and at the $60.00 strike price. The net debit limit price for my order was $58.80 and this order was executed when 300 shares were purchased at $62.50 and 3 May 22nd, 2026 Call options were sold for $3.70 per share.  Therefore, a maximum potential time value profit from the Calls of $.1.20 per share = [$3.70 options premium - ($62.50 stock price - $60.00 strike price)] is available for this position.  

This position uses the Covered Calls Advisor's Dividend Capture Strategy since Pan Am Silver has an upcoming quarterly ex-dividend of $.18 per share on May 19th which is prior to the May 22nd options expiration date.  This is equivalent to an absolute annual dividend yield of 1.2% and an equivalent annualized dividend yield of 10.5% = [($.18/$62.50) x (365/10 days to expiration)].  This dividend is included in the detailed return-on-investment calculations below.  Either an early assignment on May 18th (the last trading day prior to the ex-dividend date) or on the May 22nd options expiration date would be desirable given the potential annualized return on investments for either outcome.  Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on August 5th, 2026 is more than two months after the May 22nd options expiration date.  

Pan American Silver Corporation is a large precious metals mining company that generates revenue by exploring for, developing, and operating silver and gold mines across the Americas, while also producing zinc, lead, and copper as by-products. Its business model is built around owning long-life mineral reserves and efficiently extracting and selling metals into global commodity markets, giving investors leveraged exposure to precious metal prices and rising industrial demand for silver. Pan American’s primary competitive advantages include one of the world’s largest silver reserve bases, a diversified portfolio of producing mines, operational scale, and deep technical expertise in mine development and processing, although profitability remains sensitive to commodity prices and geopolitical conditions in Latin America.

Pan American Silver passed all 18 criteria in my "Key Metrics for Comparing Companies" stock screener, which places it in the top 2% of the major U.S. companies considered in this stock screener.  The average target price of the 18 analysts following Pan American Silver is $72.46 which is +15.9% above today's stock purchase price.  The stock screener criteria and the actual numbers for PAAS are shown in the filter breakdown in the table below:

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

•  +2.0% absolute return (equivalent to +105.8% annualized return-on-investment for the next 7 days) if the stock is assigned early (on the last business day prior to the May 19th ex-dividend date); or  
  

• +2.3% absolute return (equivalent to +85.2% annualized return-on-investment over the next 10 days) if the stock is assigned on the May 22nd, 2026 options expiration date.

Pan American Silver Corporation (PAAS) -- New Covered Calls Position

The buy/write transaction was:

5/12/2026 Bought 300 Pan American Silver shares @ $62.50
5/12/2026 Sold 3 PAAS 5/22/2026 $60.00 Call options @ $3.70 per share.
Note: Implied Volatility (IV) of the Call options was at 54.0 when this position was transacted which, as preferred, is above the current VIX of 18.3.  The probability that these Call options will expire in-the-money on the options expiration date was 64.2% when this position was established.   
5/19/2026 Upcoming quarterly ex-dividend of $.18 per share.

Two possible overall performance results (including commissions) for this Pan American Silver Covered Calls position are as follows:
Covered Calls Net Investment: $17,642.01
= ($62.50 - $3.70) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,107.99
= ($3.70 * 300 shares) - $2.01 commission
(b) Dividend Income (If PAAS Call options exercised early on May 18th, 2026, the last business day prior to the May 19th ex-div date): +$0.00; or
(b) Dividend Income (If Pan American Silver stock assigned at the May 22nd, 2026 options expiration): +$54.00
= ($.18 dividend per share x 300 shares)

(c) Capital Appreciation (If PAAS Call options assigned early on May 19th, 2026): -$750.00

+($60.00 strike price - $62.50 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If shares assigned at $60.00 strike price at the 5/19/2026 options expiration): -$750.00
+($60.00 - $62.50) * 300 shares

1. Total Net Profit [If option exercised early (business day prior to the May 19th ex-dividend date)]: +$357.99

= (+$1,107.99 options income + $0.00 dividend income - $750.00 capital appreciation); or

2. Total Net Profit (If Pan American's shares assigned at $60.00 at the May 22nd, 2026 expiration): +$411.99

= (+$1,107.99 options income + $54.00 dividend income - $750.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to the 5/19/2026 ex-dividend date]: +2.0%

= +$357.99/$17,642.01

Potential Annualized Return (If option exercised early): +105.8%

= (+$357.99/$17,642.01) * (365/7 days); or

2. Potential Absolute Return-on-Investment (If Pan American's shares assigned on the May 22nd options expiration date): +2.3%

= +$411.99/$17,642.01

Potential Annualized Return (If PAAS' shares assigned at $60.00 at the 5/22/2026 options expiration date): +85.2%

= (+$411.99/$17,642.01) * (365/10 days)

Either outcome provides a very attractive return-on-investment result for this Pan American Silver Corporation investment.  These returns will be achieved as long as the stock is above the $60.00 strike price at assignment.  However, if the stock declines below the strike price, the breakeven price of $58.62 ($62.50 - $3.70 - $.18) provides 6.2% 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 (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy.  As shown below, all nine criteria are achieved for this Pan American Silver Corporation Covered Calls position.

Covered Call Established in Amgen Inc.

Today, a net debit buy/write limit order was entered in Amgen Inc. (ticker AMGN) to buy 100 shares and simultaneously sell 1 Call option at the May 22nd, 2026 weekly options expiration date and at the $322.50 strike price. The net debit limit price for my order was $320.40 and this order was executed when 100 shares were purchased at $328.90 and 1 May 22nd, 2026 Call option was sold for $8.50 per share.  Therefore, a maximum potential time value profit from the Call was $2.10 per share = [$8.50 option premium - ($328.90 stock price - $322.50 strike price)] is available for this position.  

This position uses the Covered Calls Advisor's Dividend Capture Strategy since Amgen has an upcoming quarterly ex-dividend of $2.52 per share on May 15th which is prior to the May 22nd options expiration date.  This is equivalent to an annual dividend yield of 3.1% and an equivalent annualized dividend yield of a very high 25.4% = [($2.52/$328.90) x (365/11 days to expiration)].  This dividend is included in the return-on-investment calculations detailed below.  Either an early assignment on May 14th (the last trading day prior to the ex-dividend date) or on the May 22nd options expiration date would be desirable given the potential annualized return on investment for either outcome.  Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on August 4th, 2026 is more than two months after the May 22nd options expiration date.  

Amgen is one of the world’s largest biotechnology companies, generating revenue by discovering, developing, manufacturing, and marketing biologic medicines for serious diseases in areas such as oncology, cardiovascular disease, inflammation, and rare disorders. Its business model combines a portfolio of established blockbuster drugs with a deep pipeline of new therapies and biosimilars, creating recurring cash flow that funds ongoing research, acquisitions, and shareholder returns while supporting long-term growth. Amgen’s key competitive advantages include decades of biologics manufacturing expertise, large-scale global production infrastructure, a strong intellectual property portfolio, and extensive clinical, regulatory, and commercial capabilities that create high barriers to entry and help efficiently scale therapies worldwide.

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

•  +0.7% absolute return (equivalent to +59.6% annualized return-on-investment for the next 4 days) if the stock is assigned early (on the last business day prior to this Friday's May 15th ex-dividend date); or  
  

• +1.4% absolute return (equivalent to +47.6% annualized return-on-investment over the next 11 days) if the stock is assigned on the May 22nd, 2026 options expiration date.

Amgen Inc. (AMGN) -- New Covered Call Position

As shown on the table at the bottom of this post, eight of the nine criteria of my Dividend Capture Strategy are met with this position.  The probability that this Call option will expire in-the-money on the options expiration date was 70.8% when this position was established.   

The buy/write transaction was:

5/11/2026 Bought 100 Amgen Inc. shares @ $328.90
5/11/2026 Sold 1 AMGN 5/22/2026 $322.50 Call option @ $8.50 per share.
Note: Implied Volatility (IV) of the Call option was 20.2 when this position was transacted which, as preferred, is above the current VIX of 18.4.   
5/15/2026 Upcoming quarterly ex-dividend of $2.52 per share.

Two possible overall performance results (including commissions) for this Amgen Covered Call position are as follows:
Covered Call Net Investment: $32,040.67
= ($328.90 - $8.50) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$849.33
= ($8.50 * 100 shares) - $.67 commission
(b) Dividend Income (If Amgen Call option exercised early on May 14th, 2026, the last business day prior to the May 15th ex-div date): +$0.00; or
(b) Dividend Income (If Amgen stock assigned at the May 22nd, 2026 options expiration): +$252.00
= ($2.52 dividend per share x 100 shares)

(c) Capital Appreciation (If Amgen Call option assigned early on May 15th, 2026): -$640.00

= ($322.50 strike price - $328.90 stock purchase price) * 100 shares; or

(c) Capital Appreciation (If shares assigned at $322.50 strike price at the 5/22/2026 options expiration): -$640.00
= ($322.50 - $328.90) * 100 shares

1. Total Net Profit [If option exercised early (business day prior to the May 15th ex-dividend date)]: +$209.33

= (+$849.33 option income + $0.00 dividend income - $640.00 capital appreciation); or

2. Total Net Profit (If Amgen's shares assigned at $322.50 at the May 22nd, 2026 expiration): +$459.33

= (+$849.33 option income + $252.00 dividend income - $640.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to the 5/15/2026 ex-dividend date]: +0.7%

= +$209.33/$32,040.67

Potential Annualized Return (If option exercised early): +59.6%

= (+$209.33/$32,040.67) * (365/4 days); or

2. Potential Absolute Return-on-Investment (If Amgen's shares assigned on the May 22nd options expiration date): +1.4%

= +$459.33/$32,040.67

Potential Annualized Return (If Amgen's shares assigned at the $322.50 strike price on the 5/22/2026 options expiration date): +47.6%

= (+$459.33/$32,040.67) * (365/11 days)

Either outcome would provide a very attractive return-on-investment result for this Amgen investment.  These returns will be achieved as long as the stock is above the $322.50 strike price at assignment.  However, if the stock declines below the strike price, the breakeven price of $317.88 ($328.90 - $8.50 - $2.52) provides 3.4% 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 (see below) must be 'YES' prior to establishing a new Covered Call position using the Covered Calls Advisor's Dividend Capture strategy.  As shown below, eight criteria are achieved for this Amgen Inc. Covered Call position.