May 29th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with May 29th, 2026 options expirations and both positions (IBM Corporation and NVIDIA Corporation) were assigned yesterday so they were closed out at their respective strike prices.  The return-on-investment summary for each position is as follows:

1. IBM Corporation (IBM) -- +3.1% absolute return-on-investment (equivalent to +45.0% annualized return-on-investment) for the 25 days of this investment.  This IBM Covered Call position had a $225.00 strike price and it closed at $297.80 yesterday.  The most recent blog post showing the details of this position is here. 

2. Nvidia Corporation (NVDA) -- +1.2% absolute return-on-investment (equivalent to +53.7% annualized return-on-investment) for the 8 days of this investment.  The owner of these three NVDA Calls exercised their option yesterday to buy the 300 NVIDIA shares despite the stock closing below the $212.50 strike price at $211.14 per share.  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. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Call Position Established in Insulet Corporation

Today a Covered Call position in Insulet Corporation (PODD) was established when one hundred shares were purchased at $144.07 and one June 18th, 2026 Call option was sold at $12.95 per share at the $135.00 strike price.  The buy/write net debit limit order at $131.12 was executed, so the time value was $3.88 per share [$12.95 Call option premium - ($144.07 stock purchase price - $135.00 strike price)].  An in-the-money Covered Calls position was established with a 66.9% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Insulet Corporation makes, sells, and develops its proprietary Omnipod System, an automated insulin pump for insulin-dependent diabetics in the U.S. and Internationally.  Their business operates on a razor-and-blade model centered on its Omnipod system, pairing its low-cost controller (the razor hardware) with its disposable (replaced every 3 days) insulin pods (the consumable blades) that generate recurring, high-margin revenue and strong cash flow visibility. Financially, the company has delivered a decade of consistent high growth, with revenue expanding from under $1B in 2020 to ~$2.7B in 2025 (roughly a 25–30% annual growth rate in recent years), including its 10th consecutive year of 20%+ growth and accelerating ~30% growth in 2025. Profitability has scaled alongside revenue, with gross margins around ~70%+ and operating leverage improving as volumes increase, though near-term earnings can fluctuate due to reinvestment in sales and R&D. Looking forward, management continues to guide to ~20%+ revenue growth with even faster EPS expansion, driven by international expansion, penetration of the large Type 2 diabetes market, and deeper integration with leading automated insulin delivery ecosystems such as Dexcom's G7 and Abbott's FreeStyle Libre. Overall, Insulet offers investors a rare combination of durable recurring revenue, strong historical execution, and a long runway for growth in an underpenetrated global market.

Insulet is highly rated by analysts.  The average target price of the 25 analysts currently covering the company is +81.0% above today's stock purchase price.  In addtion, Morningstar has a 5-star strong buy rating and CFRA a 4-star buy rating.

As detailed below, a potential return-on-investment result is +3.0% absolute return-on-investment (equivalent to +49.0% annualized return-on-investment over the next 22 days) if the stock is assigned on the June 18th, 2026 options expiration date.

Insulet Corporation (PODD) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
5/27/2026 Bought 100 Insulet Corp. shares @ $144.07
5/27/2026 Sold 1 PODD 6/18/2026 $135.00 Call option @ $12.95 per share
Note: the Implied Volatility of the Call was 54.2 when this transaction was executed.  As I prefer, this value greatly exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 16.5.

A possible overall performance result (including commission) for this Insulet Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $13,112.67
= ($144.07 - $12.95) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,294.33
= ($12.95 * 100 shares) - $.67 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If Insulet shares assigned at the $135.00 strike price on the options expiration date): -$907.00
+($135.00 strike price - $144.07 stock purchase price) * 100 shares

Total Net Profit (If Insulet shares assigned at the $135.00 strike price at the 6/18/2026 expiration date): +$387.33

= (+$1,294.33 option income + $0.00 - $907.00 capital appreciation)

Absolute Return-on-Investment (If PODD shares assigned at the $135.00 strike price on the June 18th, 2026 options expiration date): +3.0%

= +$387.33/$13,112.67

Annualized Return-on-Investment (If Insulet stock assigned at the $135.00 strike at the 6/18/2026 options expiration date): +49.0%

= (+$387.33/$13,112.67) * (365/22 days)

Established Covered Calls in NVIDIA Corporation

Today I established a short-term Covered Calls position in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $202.18 was executed and the time value was $2.82 per share [$9.14 Call options premium - ($211.32 stock purchase price - $205.00 strike price)].  An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $205.00 strike price) on the 6/5/2026 options expiration date was 67.0% when this transaction was executed.  

I prefer not to hold positions on earnings reporting dates and since NVIDIA reported their earnings just last week (which were stellar in all respects), I decided to continue my normal practice of establishing weekly Covered Call positions in NVIDIA each week.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $205.00 strike price) and therefore assigned on its June 5th, 2026 options expiration date is +1.5% absolute return-on-investment (equivalent to +61.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
5/27/2026 Bought 200 NVIDIA Corporation shares at $211.32.

5/27/2026 Sold 2 NVIDIA 6/5/2026 $205.00 Call options @ $9.14 per share.  The Implied Volatility of these Calls was 41.8 when this position was established, which is well above (as preferred) the current 16.6 value of VIX.

6/4/2026 Ex-dividend of $.25 per share.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $40,437.34
= ($211.32 - $9.14) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,829.34
= ($9.14 * 200 shares) - $2.01 commission
(b) Dividend Income: +$50.00 = $.25 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $205.00 strike price) on the 6/5/2026 options expiration date): -$1,264.00
+($205.00 strike price - $211.32 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $202.00 strike price on the 6/5/2026 options expiration date): +$615.34

= (+$1,829.34 options income + $50.00 dividend income - $1,264.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $205.00 strike price on the 6/5/2026 options expiration date): +1.5%

= (+$615.34/$40,437.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $205.00 strike price on the 6/5/2026 options expiration date): +61.7%
= (+$615.34/$40,437.34) * (365/9 days)

Covered Call Position Established in T-Mobile US, Inc.

Today a short-term Covered Call position was established in T-Mobile US, Inc. (ticker symbol TMUS).  My buy/write limit order was executed when 100 shares were purchased at $188.74 and 1 June 5th, 2026 weekly Call option was sold at $5.59 per share at the $185.00 strike price.  The time value (aka extrinsic value) profit potential in the Call option was $1.85 per share [$5.59 Call option premium - ($188.74 stock price - $185.00 strike price)] when this transaction executed.  There is also an upcoming ex-dividend of $1.02 per share this Friday (May 29th, 2026).  When this position was established, the probability that the Call will be in-the-money on the options expiration date was 64.9%.  Since it is unlikely that the Call option will be exercised early (i.e. on the day prior this Friday's ex-dividend date), only the potential return-on-investment results are shown below if the stock is in-the-money on its June 5th options expiration date.  Important to the Covered Calls Advisor, T-Mobile's next quarterly earnings report on July 22nd is after the June 6th options expiration date. 

Analysts' average target price for T-Mobile is currently $257.90 which is +36.6% above today's stock purchase price.  Fundamentally speaking, T-Mobile is Buy rated by LSEG Stocks Plus Report (on a scale of 1 to 10) with an Average Score of 6 and an Optimized Score of 7.  It is rated 4* by Morningstar and 5* Strong Buy by CFRA. 

As detailed below, a potential return-on-investment result is: +1.6% absolute return (equivalent to +57.2% annualized return-on-investment over the next 10 days) if the stock is assigned on the June 5th options expiration date.

T-Mobile US, Inc. (TMUS) -- New Covered Call Position

The buy/write transaction was:
5/26/2026 Bought 100 T-Mobile shares @ $188.74.
5/26/2026 Sold 1 T-Mobile 6/5/2026 $185.00 Call option @ $5.59 per share. The Implied Volatility of the Call option was 29.3 when this transaction was executed.
5/29/2026 Upcoming quarterly ex-dividend of $1.02 per share.

A possible overall performance result (including commission) for this Covered Call position are as follows:
T-Mobile Covered Call Cost Basis: $18,315.67
= ($188.74 - $5.59) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$559.00
= ($5.59 * 100 shares)
(b) Dividend Income (T-Mobile stock assigned at the June 5th, 2026 options expiration): +$102.00
= ($1.02 dividend per share x 100 shares)
(c) Capital Appreciation (If shares assigned at the $185.00 strike price on the 6/5/2026 options expiration date): -$374.00
+($185.00 - $188.74) * 100 shares

Potential Total Net Profit (If T-Mobile shares assigned at $185.00 strike price at the June 5th, 2026 options expiration date): +$287.00

= (+$559.00 option income + $102.00 dividend income - $374.00 capital appreciation)

Potential Absolute Return (If T-Mobile shares assigned at the $185.00 strike price at the June 5th, 2026 options expiration date): +1.6%

= +$287.00/$18,315.67

Potential Annualized Return-on-Investment (If T-Mobile shares assigned at the $185.00 strike price at the June 5th, 2026 options expiration date): +57.2%

= (+$287.00/$18,315.67) x (365/10 days)