Continuation of Covered Call Position in Alphabet Inc.

The Covered Calls Advisor Portfolio has a Covered Call position in Alphabet Inc. (ticker GOOGL) with 100 shares which expired on Oct. 23rd with the stock at $320.21 which was below the $340.00 strike price. Alphabet's stock had a huge decline to the low $280s when it missed earnings expectations when it reported its quarterly earnings on October 28th. Today this position was continued by rolling down-and-out to the November 20th, 2026 options expiration date at the $300.00 strike price by selling-to-open one NVDA Call at $6.51 per share when Alphabet's stock price was $295.90.   

Alphabet Inc. (GOOGL) -- Continuation of Covered Call Position

The simultaneous buy/write transaction was as follows:
10/14/2026 Bought 100 shares of Alphabet Inc. stock @ $347.53 per share.  
10/14/2026 Sold 1 Alphabet Inc. October 23rd $340.00 Call option @ $11.71 per share.
Note: The Implied Volatility of the Call option was approximately 33.0 when this transaction was executed which, as I prefer, is well above the current 17.2 of the S&P 500 Volatility Index (i.e. VIX). 
10/23/2026 Alphabet stock closed out-of-the-money today at $320.21, so the Call option expired and the 100 GOOGL shares remain in the Covered Calls Advisor Portfolio.

11/4/2026 Continued Covered Call position by selling 1 GOOGL November 20th, 2026 $300 Call option at $6.51 per share when the stock price was $295.90.

A possible overall performance result (including commissions) if the stock is in-the-money on its options expiration date would be as follows:
Covered Call Cost Basis: $33,582.67
= ($347.53 - $11.71) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,820.66
= ($11.71 + $6.51) * 100 shares) - $1.34
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $300.00 strike price at the 11/20/2026 options expiration date): -$4,753.00
= ($300.00 strike price at options expiration - $347.53 stock purchase price) * 100 shares

Total Net Loss Potential: -$2,932.34
= (+$1,820.66 option income + $0.00 dividend income - $4,753.00 capital appreciation)

Potential Absolute Return-on-Investment: -8.7%
= -$2,932.34/$33,582.67
Potential Equivalent Annualized Return-on-Investment: -86.1%
= (-$2,932.34/$33,582.67) * (365/37 days)

October 30th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had one Covered Call position in NVIDIA Corporation with an October 30th, 2026 options expiration date.  This position closed well out-of-the-money yesterday so the Call option expired and 100 NVIDIA shares remain in the Covered Calls Advisor Portfolio.  This position history to-date is as follows:

NVIDIA Corporation (NVDA) -- This Covered Call position closed yesterday at $204.64 which was well below its $225.00 strike price, so the one Call option expired and 100 NVIDIA 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 Call position by selling one Call option against the 100 NVIDIA shares currently held or close out the position at a net loss by selling these shares.  

So far in 2026, I have closed out 25 consecutive NVIDIA Covered Call positions profitably without a single losing position; so, it is a difficult decision whether to try to repair this currently losing position back to profitability over time by continuing to sell Calls against the 100 shares or whether to accept a loss now and move on to a new position.  My reading and research in this regard over the next couple of days will assist me in this decision.

I have been reducing my Covered Calls stock exposure during the past month and replaced it with money market fund exposure.  This has been fortuitous so far since the S&P 500 Index has declined in each of the past 3 weeks.  

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 Morgan Stanley

I was notified via email early this morning by my broker (Schwab) that the one Morgan Stanley (ticker MS) November 6th, 2026 Call option was exercised early.  Morgan Stanley's stock price increased from $181.43 when this position was established to $190.00 at yesterday's market close.  The original $2.20 time value in the Call option when the position was established had declined to almost $0.00 at yesterday's market close. So, with 7 days remaining until the Nov. 6th, 2026 options expiration date, the owner of this Call exercised their option to buy the 100 shares at the $175.00 strike price in order to receive today's $1.15 per share ex-dividend and I achieved all of the original $2.20 per share time value as profit.  

Although I will not receive the ex-dividend, I am satisfied with the +42.1% annualized-return-on-investment (aroi) result achieved since it slightly exceeds the +39.2% 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 November 6th options expiration date.   

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

As detailed below, the return-on-investment result for this Morgan Stanley Covered Call position was +1.3% absolute return in 11 days (equivalent to a +42.1% annualized return-on-investment).

Morgan Stanley (MS) -- New Covered Call Position
The buy/write transaction was:
10/19/2026 Bought 100 Morgan Stanley shares @ $181.43
10/19/2026 Sold 1 Morgan Stanley 11/6/2026 $175.00 Call option @ $8.63
Note: the Implied Volatility of the Call option was 30.2 when this buy/write transaction was executed.
10/30/2026 Early Assignment of this one Morgan Stanley Call option, so the Call expired and 100 Morgan Stanley shares were sold at the $175.00 strike price.

The overall performance results (including commissions) for this Morgan Stanley Covered Call position are as follows:
Covered Call Cost Basis: $17,280.67
= ($181.43 - $8.63) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$862.33
= ($8.63 * 100 shares) - $.67 commission
(b) Dividend Income (If option exercised early on October 29th, the last business day prior to the October 30th, 2026 ex-div date): +$0.00

(c) Capital Appreciation (Morgan Stanley Call option assigned early on Oct. 30th): -$643.00
+($175.00 strike price - $181.43 stock purchase price) * 100 shares

Total Net Profit: +$219.33

= (+$862.33 option income + $0.00 dividend income - $643.00 capital appreciation)

Absolute Return-on-Investment: +1.3%

= +$219.33/$17,280.67

Annualized Return-on-Investment: +42.1%

= (+$219.33/$17,280.67) * (365/11 days)

Covered Call Position Established in NVIDIA Corporation

A short-term (10 days) slightly in-the-money Covered Call position was established this afternoon in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $212.32 was executed when one hundred shares were purchased at $217.67 and one November 6th, 2026 Call option was simultaneously sold at the $217.50 strike price at $5.35 per share, which provides a $5.18 per share = [$5.35 Call option premium received - ($217.67 stock purchase price - $217.50 option strike price)] time value profit potential.  The probability that NVIDIA's stock will close in-the-money on the 11/6/2026 options expiration date was 50.0% when this transaction was executed.  Also, the next quarterly earnings report on November 17th is after the November 6th options expiration date. 

As detailed below, a potential return-on-investment result is +2.4% absolute return-on-investment (equivalent to +88.9% annualized return-on-investment for the next 10 days) if NVIDIA's share price is in-the-money (i.e. above the $217.50 strike price) and therefore assigned on its November 6th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
10/27/2026 Bought 100 NVIDIA Corporation shares at $217.67.

10/27/2026 Sold 1 NVIDIA 11/6/2026 $217.50 Call option @ $5.35 per share.  The Implied Volatility of this Call option was 35.8 when this position was established.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,232.67
= ($217.67 - $5.35) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$534.33
= ($5.35 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $217.50 strike price at expiration): -$17.00
+($217.50 strike price - $217.67 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $217.50 strike price at the options expiration date): +$517.33
= (+$534.33 option income + $0.00 dividend income - $17.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.4%
= +$517.33/$21,232.67
Potential Annualized Return-on-Investment: +88.9%
= (+$517.33/$21,232.67) * (365/10 days)