April 2nd, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with April 2nd, 2026 options expiration dates.  

• Two positions in Boeing Company and Sea Ltd. ADR closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices -- so both positions achieved their maximum potential return-on-investment results.  
• Two positions in Microsoft Corporation and NVIDIA Corporation closed out-of-the-money so their Call options expired and the shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions (in alphabetical order) is as follows:

1. Boeing Company (BA) -- +1.4% absolute return (equivalent to +57.3% annualized return-on-investment) for the 9 days of this investment.  This Covered Call position was assigned at the $187.50 strike price since the stock closed in-the-money at $208.22 per share.  The original blog post detailing this Covered Call position is here. 

2. Microsoft Corporation (MSFT) -- This Covered Call position closed yesterday at $373.46 which was well below its $385.00 strike price, so the one Call option expired and 100 Microsoft 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 Call position by selling a Call option against the 100 Microsoft shares currently held or close out the position by selling these shares. 

3. NVIDIA Corporation (NVDA) -- This Covered Calls position closed yesterday at $177.39 which was very slightly below its $177.50 strike price, so the two Call options expired and 200 NVIDIA 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 NVIDIA shares currently held (most likely) or close out the position by selling these shares.

4. Sea Ltd. ADR (SE) -- +2.2% absolute return (equivalent to +57.3% annualized return-on-investment) for the 14 days of this investment.  This Covered Calls position was assigned at the $75.00 strike price since the stock closed in-the-money at $82.28 per share.  The most recent blog post detailing this Covered Call position is here. 

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

Continuation of Covered Calls Positions in Bank of America Corporation and The Cigna Group

The Covered Calls Advisor Portfolio had two Covered Calls positions with March 27th, 2026 (last Friday) options expiration dates.  Both positions (Bank of America Corporation and The Cigna Group) closed out-of-the-money so their Calls expired and the shares remained in the Covered Calls Advisor Portfolio.

This morning I decided to extend both of these Covered Calls positions by two weeks by selling April 11th, 2026 Call options against the shares currently held in the Covered Calls Advisor Portfolio.  

As detailed below, the potential return-on-investment results if the stocks close in-the-money on their April 10th expiration date are:

1. Bank of America Corporation -- +1.9% absolute return-on-investment (equivalent to +13.9% annualized roi) for the 49 days of this investment.

2. The Cigna Group -- +3.4% absolute return-on-investment (equivalent to +24.8% annualized roi) for the 50 days of this investment.

The details for these positions are as follows:

1. Bank of America Corporation (BAC) -- Continuation of this Covered Calls Position

The buy/write transaction was as follows:
2/20/2026 Bought 500 shares of Bank of America Corp. stock @ $51.91 per share 
2/20/2026 Sold 5 BAC March 13th, 2026 $50.00 Call options @ $2.61 per share
Note: The Implied Volatility of these Calls was 30.2 when this position was established.
3/6/2026 Ex-dividend of $.28 per share
3/13/2026 Bank of America stock closed out-of-the-money at $46.72 (i.e. below the $50.00 strike price), so the Call options expired and the 500 shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 5 March 27th, 2026 $47.50 Call options at $1.08 per share when the stock price was trading at $47.39.  The Implied Volatility of these Calls was 34.4% when this transaction was made.

3/27/2026 Bank of America stock closed out-of-the-money at $46.97 (i.e. below the $47.50 strike price), so the Call options expired and the 500 shares remain in the Covered Calls Advisor Portfolio.
3/30/2026 Continued this Covered Calls position by selling 5 April 10th, 2026 $47.50 Call options at $1.38 per share when the stock price was trading at $47.81.  The Implied Volatility of these Calls was 37.4% when this transaction was made.

A possible overall performance result (including commissions) if the stock is assigned on the 4/10/2026 options expiration date would be as follows:
Covered Calls Cost Basis: $24,653.35
= ($51.91 - $2.61) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$2,524.95
= ($2.61 + $1.08 + $1.38) * 500 shares - $10.05 commissions
(b) Dividend Income: +$140.00
= $.28 per share x 500 shares
(c) Capital Appreciation (If shares above the $47.50 strike price at the April 10th options expiration): -$2,205.00
= ($47.50 - $51.91) * 500 shares

Potential Net Profit (If BAC price is above the $47.50 strike price at the April 10th options expiration): +$459.95
= (+$2,524.95 options income + $140.00 dividend income - $2,205.00 capital appreciation)

Absolute Return-on-Investment (If BAC price is above $47.50 strike price at the April 10th options expiration): +1.9% = +$459.95/$24,653.35
Equivalent Annualized Return-on-Investment (If assigned on the 4/10/2026 options expiration date): +13.9%
= (+$459.95/$24,653.35) * (365/49 days)

2. The Cigna Group (CI) -- Continuation of this Covered Call Positionon

The buy/write transaction today was as follows:
2/19/2026 Bought 100 Cigna Group shares @ $287.06
2/19/2026 Sold 1 Cigna 3/13/2026 $275.00 Call option @ $15.56 per share.  
3/5/2026 Upcoming quarterly ex-dividend of $1.56 per share

3/13/2026 The Cigna Group stock closed out-of-the-money at $267.19 (i.e. below the $275.00 strike price), so the Call option expired and the 100 Cigna shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Call position by selling 1 March 27th, 2026 $270.00 Call option at $6.70 per share when the stock price was trading at $269.45.  The Implied Volatility of this Call options was 38.4% when this transaction was made.

3/27/2026 The Cigna Group stock closed out-of-the-money at $261.96 (i.e. below the $270.00 strike price), so the Call option expired and the 100 Cigna shares remain in the Covered Calls Advisor Portfolio.
3/30/2026 Continued this Covered Call position by selling 1 April 10th, 2026 $265.00 Call option at $7.48 per share when the stock price was trading at $263.37.  The Implied Volatility of this Call options was 44.5% when this transaction was made.

A possible overall performance result (including commissions) if this Cigna Covered Call position is in-the-money on its 4/10/2026 expiration date is as follows:
Covered Call Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commissions

Net Profit Components:
(a) Option Income: +$2,971.99
= ($15.56 +6.70 + $7.48) * 100 shares - $2.01 commissions
(b) Dividend Income: +$156.00
= ($1.56 dividend per share x 100 shares)

(c) Capital Appreciation (If Cigna shares assigned at the $265.00 strike price at the 4/10/2026 options expiration date): -$2,206.00

+($265.00 - $287.06) * 100 shares

Total Net Profit (If Cigna shares assigned at the April 10th, 2026 options expiration date): +$921.99

= (+$2,971.99 option income + $156.00 dividend income - $2,206.00 capital appreciation)

Potential Absolute Return-on-Investment (If Cigna shares assigned at the April 10th, 2026 options expiration date): +3.4%

= +$921.99/$27,150.67

Potential Annualized Return-on-Investment: +24.8%

= (+$921.99/$27,150.67) *(365/50 days)

Established Covered Call in NVIDIA Corporation

Early in this morning's trading session, I established a Covered Call position of 21 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $165.89 was executed by simultaneously purchasing one hundred shares at $170.25 and selling one April 17th, 2026 Call option at $4.36 per share and at the $175.00 strike price. A moderately out-of-the-money (strike price above the stock purchase price) Covered Call position was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $175.00 strike price) on the 4/17/2026 options expiration date was 37.8% when this transaction was executed. This is a continuation of my practice of establishing Covered Calls positions in NVIDIA for each weekly options expiration date.

As detailed below, two potential return-on-investment results are: (1) +2.6% absolute return-on-investment (equivalent to +45.6% annualized return-on-investment for the next 21 days) if NVIDIA's share price is unchanged at the $170.25 stock purchase price on the April 17th, 2026 options expiration date; and  (2) +5.5% absolute return-on-investment (equivalent to +95.4% annualized return-on-investment for the next 21 days) if NVIDIA's share price is in-the-money (i.e. above the $175.00 strike price) and therefore assigned on its April 17th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
3/27/2026 Bought 100 NVIDIA Corporation shares at $170.25.

3/27/2026 Sold 1 NVIDIA 4/17/2026 $175.00 Call option @ $4.36 per share.  The Implied Volatility of this Call was 37.8 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: $16,589.67
= ($170.25 - $4.36) * 100 shares + $.67 commission

Net Profit:
(a) Options Income: +$435.33
= ($4.36 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares close at the unchanged purchase price of $170.25 per share on the 4/17/2026 options expiration date): +$0.00
+($170.25 closing price at expiration - $170.25 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $175.00 strike price) on the 4/17/2026 options expiration date): +$475.00
+($175.00 strike price - $170.25 stock purchase price) * 100 shares

1. Total Net Profit Potential (If stock price closes at the unchanged purchase price of $170.25 per share on the 4/17/2026 options expiration date): +435.33
= (+$435.33 option income + $0.00 dividend income + $0.00 capital appreciation)
2. Total Net Profit Potential (If 100 NVIDIA shares assigned at the $175.00 strike price on the 4/17/2026 options expiration date): +$910.33

= (+$435.33 option income + $0.00 dividend income + $475.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If 100 NVDA shares closing price is unchanged at the original purchase price of $170.25 per share on the 4/17/2026 options expiration date): +2.6%
= +$435.33/$16,589.67
Potential Annualized Return-on-Investment (If 100 NVIDIA shares closing price is unchanged at the original $170.25 stock purchase price on the 4/17/2026 options expiration date): +45.6%
= (+$435.33/$16,589.67) * (365/21 days)

2. Potential Absolute Return-on-Investment (If 100 NVIDIA shares are in-the-money and therefore assigned (i.e. sold) at the $175.00 strike price on the 4/17/2026 options expiration date): +5.5%
= (+$910.33/$16,589.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $175.00 strike price on the 4/17/2026 options expiration date): +95.4%
= (+$910.33/$16,589.67) * (365/21 days)

Rolled Out Covered Calls Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in NVIDIA Corporation (ticker NVDA) with 200 shares with an options expiration date this Friday.  The current position had a strike price of $185.00 and this morning when the stock was at $178.76, I decided to roll the Covered Calls down-and-out to the April 10th, 2026 $175.00 strike price.  The diagonal spread transaction was buying-to-close the two 3/27/2026 $185.00 Calls at $.24 per share and simultaneously selling-to-open the two 4/10/2026 $175.00 Calls at $7.65 per share for a net credit of $7.41 per share (i.e. $7.65 - $.24).  As preferred, the next NVIDIA quarterly earnings report is not until May 20th, which is after the April 10th, 2026 options expiration date. 

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the April 10th, 2026 options expiration date is +6.7% absolute return-on-investment over 42 days (equivalent to +58.2% annualized-return-on-investment) if the stock closes above the $175.00 strike price on the 4/10/2026 options expiration date. The details showing this potential return-on-investment result are as follows:

NVIDIA Corporation (NVDA) -- Continuation of Covered Calls Position

The original buy/write net limit order transaction was as follows:
2/27/2026 Bought 200 NVIDIA Corporation shares at $180.02.

2/27/2026 Sold 2 NVIDIA 3/13/2026 $185.00 Call options @ $4.35 per share.  The Implied Volatility of these Calls was 44.8 when this position was established, well above (as preferred) the VIX which was at 20.7.  
3/11/2026 Ex-dividend of $.01 per share.  This miniscule dividend amount for the largest market cap company is ludicrous. 🤣

3/13/2026 NVIDIA Corporation stock closed out-of-the-money at $180.25 (i.e. below the $185.00 strike price), so the Call options expired and the 200 NVIDIA shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 2 March 27th, 2026 $185.00 Call options at $5.20 per share when the stock price was trading at $184.09.  The Implied Volatility of these Calls was 42.6% when this transaction was made.

3/25/2026 Continued this NVDA Covered Calls position by a simultaneous diagonal spread transaction of rolling down-and-out from the 3/27/2026 $185.00s to the 4/10/2026 $175.00s at a net credit of $7.41 per share.

A possible overall performance result (including commissions) if this NVIDIA Corporation Covered Calls position is in-the-money on its 4/10/2026 expiration date is as follows:
Covered Calls Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$3,356.64
= ($4.35 + $5.05 - $.24 + $7.65) x 200 shares) - $5.36 commissions
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $175.00 strike price) on the 4/10/2026 options expiration date): -$1,004.00
+($175.00 strike price - $180.02 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $175.00 strike price on the 4/10/2026 options expiration date): +$2,354.64

= (+$3,356.64 options income + $2.00 dividend income - $1,004.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $175.00 strike price on the 4/10/2026 options expiration date): +6.7%

= (+$2,354.64/$35,135.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $175.00 strike price on the 4/10/2026 options expiration date): +58.2%

= (+$2,354.64/$35,135.34) * (365/42 days)