Established Covered Calls in NVIDIA Corporation

Today a short-term Covered Calls position of 8 days duration in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $192.42 was executed and the time value was $2.58 per share [$8.39 Call options premium - ($200.81 stock purchase price - $195.00 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 $195.00 strike price) on the 5/8/2026 options expiration date was 67.7% when this transaction was executed. 

The current average target price of Wall Street analysts is now $264.95 (+31.9% above today's purchase price).  Today's position continues my recent history of establishing NVIDIA Covered Call positions with expiration dates every week.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $195.00 strike price) and therefore assigned on its May 8th, 2026 options expiration date is +1.3% absolute return-on-investment (equivalent to +61.0% 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:
4/30/2026 Bought 200 NVIDIA Corporation shares at $200.81.

4/30/2026 Sold 2 NVIDIA 5/8/2026 $195.00 Call options @ $8.39 per share.  The Implied Volatility of these Calls was 41.1 when this position was established, which is well above (as preferred) the VIX which was 17.4.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $38,485.34
= ($200.81 - $8.39) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,676.66
= ($8.39 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $195.00 strike price) on the 5/8/2026 options expiration date): -$1,162.00
+($195.00 strike price - $200.81 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $195.00 strike price on the 5/8/2026 options expiration date): +$514.66

= (+$1,676.66 options income + $0.00 dividend income - $1,162.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $195.00 strike price on the 5/8/2026 options expiration date): +1.3%

= (+$514.66/$38,485.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $195.00 strike price on the 5/8/2026 options expiration date): +61.0%
= (+$514.66/$38,485.34) * (365/8 days)

Covered Call Position Established in Barrick Mining Corporation

Several readers of this blog have indicated that they have difficulty developing a diversified portfolio of Covered Calls because of the total cost of having multiple positions when a single Covered Call of 100 shares for a company at $100 per share would require a $10,000 investment.  So, for example, a portfolio of 8 companies averaging $10,000 each would require $80,000 which is prohibitive for many investors.  So, today I am providing an example of a relatively low-cost Covered Call position in Barrick Mining Corporation (ticker B).  

This position was established today when one hundred shares were purchased at $38.48 and one May 8th, 2026 Call option was sold at $2.22 per share at the $37.00 strike price.  So as shown in the details below, this position was established at a reasonably small cost basis at only $3,626.67. My buy/write net debit limit order at $36.26 was executed, so the time value was $.74 per share [$2.22 Call option premium - ($38.48 stock purchase price - $37.00 strike price)].  As I prefer, Barrick's next quarterly earnings report on May 11th, 2026 is after the May 8th, 2026 options expiration date.  An in-the-money Covered Call position was established with a 64.5% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Barrick Mining Corporation is one of the world's largest gold and copper producers, operating a diversified portfolio of mines across North America, Africa, the Middle East, and South America. Full-year 2025 gold production reached 3.26 million ounces and copper production 220,000 tonnes, both in line with guidance, underpinning a financially exceptional year. The company generated record annual operating cash flow of $7.7 billion and free cash flow of $3.9 billion, while net earnings of $5.0 billion and a year-end cash balance of $6.7 billion left Barrick in a net cash position of $2 billion -- a notably strong balance sheet for a major miner. Looking ahead, Barrick's strategy through 2030 is focused on disciplined growth and portfolio quality, including a significant expansion of its copper footprint to capitalize on rising demand tied to electrification and the global energy transition, while a planned IPO of its premier North American gold assets (including stakes in Nevada Gold Mines and Pueblo Viejo) is expected to be completed by late 2026 and is seen by the Board as the best path to maximizing shareholder value.

Barrick met all criteria in several of my custom stock screeners.  Additionally, the 15 analysts currently covering the company have an average target price of $56.56 for the stock (+47.0% above today's stock purchase price).  

 As detailed below, a potential return-on-investment result is +2.0% absolute return-on-investment (equivalent to +82.0% annualized return-on-investment over the next 9 days) if the stock is assigned on the May 8th, 2026 options expiration date.

Barrick Mining Corporation (B) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
4/29/2026 Bought 100 Barrick Mining Corporation shares @ $38.48
4/29/2026 Sold 1 Barrick 5/8/2026 $37.00 Call option @ $2.22 per share
Note: the Implied Volatility of the Call was 59.1 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 18.5.

A possible overall performance result (including commissions) for this Barrick Mining Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $3,626.67
= ($38.48 - $2.22) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$221.33
= ($2.22 * 100 shares) - $.67 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Barrick shares assigned at $37.00 strike price on the options expiration date): -$148.00
+($37.00 strike price - $38.48 stock purchase price) * 100 shares

Total Net Profit (If Barrick shares assigned at the $37.00 strike price at the May 8th, 2026 options expiration date): +$73.33

= (+$221.33 Call option income + $0.00 dividend income - $148.00 capital appreciation)

Absolute Return-on-Investment (If Barrick shares assigned at $37.00 strike price on the May 8th, 2026 options expiration date): +2.0%

= +$73.33/$3,626.67

Annualized Return-on-Investment (If Barrick's stock is assigned at $37.00 at the 5/8/2026 options expiration date): +82.0%

= (+$73.33/$3,626.67) * (365/9 days)

Covered Call Established in SAP SE ADR

Today, a net debit buy/write limit order was entered in SAP SE ADR (ticker SAP) to buy 100 shares and simultaneously sell 1 Call option at the May 15th, 2026 monthly options expiration date and at the $162.50 strike price. The net debit limit price for my order was $160.36 and this order was executed when 100 shares were purchased at $170.65 and 1 May 15th, 2026 Call option was sold for $10.29 per share.  Therefore, a maximum potential time value profit from the Call was $2.14 per share = [$10.29 option premium - ($170.65 stock price - $162.50 strike price)] is available for this position.  

This position uses the Covered Calls Advisor's Dividend Capture Strategy since SAP has an upcoming annual (not quarterly) ex-dividend of $2.9291 per share on May 5th which is prior to the May 15th options expiration date.  This is equivalent to an absolute annual dividend yield of 1.7% and an equivalent annualized dividend yield of an incredibly high 39.2% = [($2.9291/$170.65) x (365/16 days to expiration)].  This dividend is included in the return-on-investment calculations detailed below.  Either an early assignment on May 4th (the last trading day prior to the ex-dividend date) or on the May 15th 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 July 23rd, 2026 is more than two months after the May 15th options expiration date.  

SAP, headquartered in Germany, is the world's dominant ERP (Enterprise Resource Planning) vendor, generating revenue through cloud subscriptions and software licenses as customers migrate from its legacy on-premise ECC system to S/4HANA Cloud — a transition that yields 2–3x more revenue per customer than the old model. Its competitive moat rests on extreme switching costs: replacing SAP once it's embedded in a company's core financial and supply chain operations is a multi-year, board-level undertaking that most organizations actively avoid. SAP projects cloud revenue of $30.2–30.7 billion for 2026, representing 23–25% year-over-year growth, with total cloud and software revenue forecast at $42.5–43.1 billion. SAP currently trades at a trailing P/E of roughly 23x with a forward P/E around 21x — with FY2026 EPS forecast at $8.35, up ~20% year-over-year. With a market cap of approximately $200 billion (down roughly 44% over the past year amid broader software sector pressure), SAP's valuation disconnect from its strong cloud fundamentals is a key debate among analysts, with the average price target implying significant upside if the S/4HANA migration wave executes as planned.

SAP SE ADR passed all 20 criteria in my "Balanced Growth" 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 10 analysts following SAP is $257.95 which is +51.2% above today's stock purchase price.  The stock screener criteria and the actual numbers for SAP are shown in the filter breakdown in the table below:

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

•  +1.3% absolute return (equivalent to +81.4% annualized return-on-investment for the next 6 days) if the stock is assigned early (on the last business day prior to the May 5th ex-dividend date); or  
  

• +3.2% absolute return (equivalent to +72.2% annualized return-on-investment over the next 16 days) if the stock is assigned on the May 15th, 2026 options expiration date.

SAP SE ADR (SAP) -- New Covered Call Position

As shown on the table at the bottom of this post, all nine criteria of my Dividend Capture Strategy are met with this position.  Even if the SAP stock price declines somewhat during the next 16 days until the options expiration date, if the stock closes above the $162.50 strike price, then a very satisfactory annualized-return-on-investment of +72.2% will be achieved.  The probability that this Call option will expire in-the-money on the options expiration date was 74.1% when this position was established.   

The buy/write transaction was:

4/29/2026 Bought 100 SAP shares @ $170.65
4/29/2026 Sold 1 SAP 5/15/2026 $162.50 Call option @ $10.29 per share.
Note: Implied Volatility (IV) of the Call option was at 34.6 when this position was transacted which, as preferred, is above the current VIX of 18.9.   
5/5/2026 Upcoming annual (not quarterly) ex-dividend of $2.9291 per share.

Two possible overall performance results (including commissions) for this SAP Covered Call position are as follows:
Covered Call Net Investment: $16,036.67
= ($170.65 - $10.29) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,029.67
= ($10.29 * 100 shares) - $.67 commission
(b) Dividend Income (If SAP Call option exercised early on May 4th, 2026, the last business day prior to the May 5th ex-div date): +$0.00; or
(b) Dividend Income (If SAP stock assigned at the May 15th, 2026 options expiration): +$292.91
= ($2.9291 dividend per share x 100 shares)

(c) Capital Appreciation (If SAP Call option assigned early on May 5th, 2026): -$815.00

+($162.50 strike price - $170.65 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $162.50 strike price at the 5/15/2026 options expiration): -$815.00
+($162.50 - $170.65) * 100 shares

1. Total Net Profit [If option exercised early (business day prior to the May 5th ex-dividend date)]: +$214.67

= (+$1,029.67 option income + $0.00 dividend income - $815.00 capital appreciation); or

2. Total Net Profit (If SAP's shares assigned at $162.50 at the May 15th, 2026 expiration): +$507.58

= (+$1,029.67 option income + $292.91 dividend income - $815.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to the 5/5/2026 ex-dividend date]: +1.3%

= +$214.67/$16,036.67

Potential Annualized Return (If option exercised early): +81.4%

= (+$214.67/$16,036.67) * (365/6 days); or

2. Potential Absolute Return-on-Investment (If SAP's shares assigned on the May 15th options expiration date): +3.2%

= +$507.58/$16,036.67

Potential Annualized Return (If SAP's shares assigned at the $162.50 strike price on the 5/15/2026 options expiration date): +72.2%

= (+$507.58/$16,036.67) * (365/16 days)

Either outcome provides a very attractive return-on-investment result for this SAP investment.  These returns will be achieved as long as the stock is above the $162.50 strike price at assignment.  However, if the stock declines below the strike price, the breakeven price of $157.4309 ($170.65 - $10.29 - $2.9291) provides 7.7% 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, all nine criteria are achieved for this SAP SE ADR Covered Call position.

Established Covered Calls Position in Citigroup Inc.

This morning a Covered Calls position was established in Citigroup Inc. (ticker symbol C) using my Dividend Capture Strategy (see description here) when 300 shares were purchased at $128.73 and 3 May 8th, 2026 Call options were sold at $5.31 per share at the $125.00 strike price.  The net debit limit order at $123.42 was executed, so the time value was $1.58 per share [$5.31 Call options premium - ($128.73 stock purchase price - $125.00 strike price)]. There is also an upcoming quarterly ex-dividend of $.60 per share on May 4th (a current annual dividend yield of 1.9%), so two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment since the ex-dividend is prior to the May 8th, 2026 options expiration date.  

Citigroup's earnings report two weeks ago was very positive. Also, since their next earnings report is not until July 14, 2026, there is no earnings report prior to the options expiration date.  From a technical indicators viewpoint, Market Edge's current rating of Citigroup is a "Strong Buy".  An in-the-money Covered Calls position was established when the probability of the stock closing in-the-money (and therefore being assigned) on the 5/8/2026 options expiration date was 67.1%. The average target price of the analysts covering Citigroup Inc. stock is $141.59 (+10.0% above today's stock purchase price).

Most companies in the Financial Sector provide only modest growth prospects, but they often provide good annual dividend yields (such as the 1.9% annual dividend yield for this Citigroup position).  Consequently, the Covered Calls Advisor targets opportunities to use the Dividend Capture Strategy in all Financial Sector Covered Calls positions.  This new May 8th, 2026 Citigroup Covered Calls position continues the Dividend Capture Strategy of often selling in-the-money monthly Covered Calls for one of six megacap U.S. banks (Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo) for each options expiration month:
(JPMorgan Chase quarterly for Jan, Apr, July, and Oct options expirations;
Citigroup, Morgan Stanley, and/or Wells Fargo for Feb, May, Aug, and Nov options expirations; and Bank of America and/or Goldman Sachs for Mar, Jun, Sep, and Dec options expirations). 

The goal of these monthly Covered Calls in these banks is to both provide an opportunity to either: (1) potentially capture the quarterly dividend payment and if the stock price remains above the strike price at options expiration, the maximum possible return-on-investment result on the options expiration date would be achieved; or (2) have the stock assigned early on the last trading day prior to the ex-dividend date in which case the Covered Calls Advisor is usually very pleased since the Dividend Capture Strategy criteria are designed such that often the annualized return-on-investment for early assignment is close to or somewhat greater than what would be achieved if the stock was instead assigned on its options expiration date.  So far, applying this approach has provided attractive annualized return results -- significantly better than would be achieved if Covered Calls positions for these bank stocks were instead held in the Covered Calls Advisor Portfolio in the other two non-dividend paying months each quarter.   

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

•  +1.3% absolute return (equivalent to +77.5% annualized return-on-investment for the next 6 days) if the stock is assigned early (on the last business day prior to the May 4th, 2026 ex-dividend date); OR 

• +1.8% absolute return (equivalent to +64.3% annualized return-on-investment over the next 10 days) if the stock is assigned on the May 8th, 2026 options expiration date.

Citigroup Inc. (C) -- New Covered Calls Position
The simultaneous buy/write transaction was:
4/28/2026 Bought 300 Citigroup Inc. shares @ $128.73.
4/28/2026 Sold 3 Citigroup 5/8/2026 $125.00 Call options @ $5.31 per share.
Note: The Implied Volatility of the Call options was 36.5 when this position was transacted.
5/4/2026 Upcoming quarterly ex-dividend of $.60 per share.

Two possible overall performance results (including commissions) for this Citigroup Inc. Covered Calls position are as follows:
Covered Calls Cost Basis: $37,028.01
= ($128.73 - $5.31) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,590.99
= ($5.31 * 300 shares) - $2.01 commission
(b) Dividend Income (If options exercised early on May 1st, 2026, the last business day prior to the May 4th, 2026 ex-div date): +$0.00; or
(b) Dividend Income (If Citigroup stock assigned on the May 8th, 2026 options expiration date): +$180.00
= ($.60 dividend per share x 300 shares)

(c) Capital Appreciation (If Citi Call options assigned early on May 4th): -$1,119.00
+($125.00 strike price - $128.73 stock purchase price) * 300 shares; or
(c) Capital Appreciation (If shares assigned at $125.00 strike price at options expiration): -$1,119.00
+($125.00 - $128.73) * 300 shares

1. Total Net Profit (If options exercised early): +$471.99

= (+$1,590.99 options income +$0.00 dividend income - $1,119.00 capital appreciation); or

2. Total Net Profit (If Citi shares assigned at $125.00 at the May 8th, 2026 options expiration date): +$651.99

= (+$1,590.99 options income + $180.00 dividend income - $1,119.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised on business day prior to the May 4th, 2026 ex-dividend date]: +1.3%

= +$471.99/$37,028.01

Annualized Return-on-Investment (If option exercised early): +77.5%

= (+$471.99/$37,028.01) * (365/6 days); or

2. Absolute Return-on-Investment (If Citi shares assigned on the May 8th, 2026 options expiration date): +1.8%

= +$651.99/$37,028.01

Annualized Return-on-Investment (If Citi shares assigned at $125.00 at the May 8th, 2026 expiration): +64.3%

= (+$651.99/$37,028.01) * (365/10 days)

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 Citigroup Inc. Covered Calls position.