Covered Call Position Established in Alphabet Inc.

A new short-term Covered Call net debit buy/write limit order was transacted in today's late morning trading session in Alphabet Inc. (ticker GOOGL) for the October 2nd, 2026 expiration and at the $330.00 strike price.  The order was placed at a $326.92 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $3.08 per share [$13.75 Call option premium - ($340.67 stock purchase price - $330.00 strike price)].  The probability that this position will be in-the-money and therefore assigned on its options expiration date was 72.8% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 9 days (equivalent to a +38.1% annualized return-on-investment).  

Alphabet Inc. (GOOGL) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
9/23/2026 Bought 100 shares of Alphabet Inc. stock @ $340.67 per share.  
9/23/2026 Sold 1 Alphabet Inc. October 2nd $330.00 Call option @ $13.75 per share.
Note: The Implied Volatility of the Call option was approximately 32.7 when this transaction was executed which, as I prefer, is well above the current 14.7 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $32,692.67
= ($340.67 - $13.75) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,374.33
= ($13.75 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $330.00 strike price at the 10/2/2026 options expiration date): -$1,067.00
= ($330.00 strike price - $340.67 stock purchase price) * 100 shares

Total Net Profit Potential: +$307.33
= (+$1,374.33 option income + $0.00 dividend income - $1,067.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$307.33/$32,692.67
Potential Equivalent Annualized Return-on-Investment: +38.1%
= (+$307.33/$32,692.67) * (365/9 days)

Established Covered Calls Position in Hewlett Packard Enterprise Company

In this afternoon's trading session, a short-term Covered Calls position at my net debit limit order price of $56.84 executed in Hewlett Packard Enterprise Company (ticker symbol HPE) when 400 shares were purchased at $61.17 and 4 October 2nd, 2026 Call options were sold at $4.33 per share at the $58.00 strike price.  The potential time value profit was $1.16 per share [$4.33 Call options premium - ($61.17 stock purchase price - $58.00 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 10/2/2026 options expiration date was 67.9%.  

HPE is an enterprise technology company centered on servers/compute, storage, networking, and hybrid cloud/AI infrastructure, sold mainly to large businesses and public-sector clients. It's shifting revenue toward recurring software and as-a-service offerings (GreenLake) for more predictable income, though hardware and integrated solutions still make up a large share of sales. A key strategic move was the 2025 acquisition of Juniper Networks, merged with Aruba to form HPE Networking, strengthening its position in AI-driven enterprise networking. HPE is also leaning into the AI infrastructure boom, with its hybrid cloud and edge computing position mattering as businesses mix on-premises and public cloud. Competitively, it faces pressure from major cloud providers and hardware rivals, and its performance is tightly linked to execution, IT spending cycles, and successful integration of acquisitions. 

As preferred, there is no quarterly earnings report prior to the options expiration date.  Hewlett Packard Enterprise appeared in my "Next-Year Growth>P/E and 5-Year PEG <1.4" stock screener by passing all criteria as shown below:

As detailed below, a potential return-on-investment result is: +2.0% absolute return (equivalent to +74.1% annualized return-on-investment for the next 10 days) if the stock is assigned on the October 2nd, 2026 options expiration date.

Hewlett Packard Enterprise Company (HPE) -- New Covered Calls Position
The buy/write transaction was:
9/22/2026 Bought 400 Hewlett Packard Enterprise shares @ $61.17.
9/22/2026 Sold 4 HPE 10/2/2026 $58.00 Call options @ $4.33.
Note: the Implied Volatility of the Call options was high at 64.2% when this buy/write transaction was executed. 

A possible overall performance result (including commissions) for this Hewlett Packard Enterprise Company Covered Calls position is as follows:
Covered Calls Cost Basis: $22,738.68
= ($61.17 - $4.33) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$1,729.32
= ($4.33 * 400 shares) - $2.68 commission
(b) Dividend Income: +$0.00

(c) Capital Appreciation (If shares assigned at the $58.00 strike price at the 10/2/2026 options expiration): -$1,268.00

+($58.00 - $61.17) * 400 shares

Total Net Profit (If Hewlett Packard Enterprise shares assigned at $58.00 strike price at the Oct. 2nd, 2026 expiration): +$461.32

= (+$1,729.32 options income + $0.00 dividend income - $1,268.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.0%

= +$461.32/$22,738.68

Potential Annualized Return-on-Investment: +74.1%

= (+$461.32/$22,738.68) * (365/10 days)

September 18th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Call positions with September 4th, 2026 options expirations and both positions (Alphabet Inc. and NVIDIA Corporation) were in-the-money at yesterday's market closing, so the Call options expired and both Covered Call positions were closed out by selling the stocks at their respective strike prices.  The return-on-investment summary for each position is as follows:

1. Alphabet Inc. (GOOGL) -- +1.0% absolute return-on-investment (equivalent to +42.4% annualized return-on-investment) for the 9 days of this investment.  This Alphabet Covered Call position had a $320.00 strike price and it closed in-the-money at $349.54 yesterday.  The original blog post showing the details of this position is here. 

2. Nvidia Corporation (NVDA) -- +0.8% absolute return-on-investment (equivalent to +39.9% annualized return-on-investment) for the 7 days of this investment.  This NVIDIA Covered Call position had a $212.50 strike price and it closed in-the-money at $222.27 yesterday.  The original blog post showing the details of this position is here.

Send your questions/comments to the email address shown below on any topics related to the Covered Calls investing strategy.  As always, any new positions I establish will continue to be posted on this blog site when they occur.  

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

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)