Established Covered Calls in NVIDIA Corporation

In this afternoon's trading session, I established a short-term Covered Calls position of 11 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $166.76 was executed by simultaneously purchasing two hundred shares at $179.56 and selling two March 20th, 2026 Call options at $12.80 per share and at the $170.00 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 $170.00 strike price) on the 3/20/2026 options expiration date was 70.1% when this transaction was executed. 

NVIDIA reported their Q4 earnings after the market close twelve days ago. They substantially beat analysts' estimates on all relevant metrics including both earnings and revenue (which at $68.1 billion was 72.4% above the comparable quarter last year). In addition, their next quarter guidance at $78 billion is 76.9% above last year's result.  NVIDIA's stock has reacted negatively since then, but I agree with the numerous sell-side equity research firms that raised their NVIDIA post-earnings target prices.  The average target price of Wall Street analysts is now $261.97 (+45.9% above today's purchase price).  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $170.00 strike price) and therefore assigned on its March 20th, 2026 options expiration date is +1.9% absolute return-on-investment (equivalent to +64.5% annualized return-on-investment for the next 11 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
3/9/2026 Bought 200 NVIDIA Corporation shares at $179.56.

3/9/2026 Sold 2 NVIDIA 3/20/2026 $170.00 Call options @ $12.80 per share.  The Implied Volatility of these Calls was 56.3 when this position was established, which is well above (as preferred) the VIX which was 27.6.  
3/11/2026 Ex-dividend of $.01 per share.  This miniscule dividend amount for the #1 largest market cap company is ludicrous. 🤣

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $33,353.34
= ($179.56 - $12.80) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,558.66
= ($12.80 * 200 shares) - $1.34 commission
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $170.00 strike price) on the 3/20/2026 options expiration date): -$1,912.00
+($170.00 strike price - $179.56 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $170.00 strike price on the 3/20/2026 options expiration date): +$648.66

= (+$2,558.66 options income + $2.00 dividend income - $1,912.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $170.00 strike price on the 3/20/2026 options expiration date): +1.9%

= (+$648.66/$33,353.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $170.00 strike price on the 3/20/2026 options expiration date): +64.5%
= (+$648.66/$33,353.34) * (365/11 days)

Closed Covered Calls Position in Delta Air Lines Inc.

On last Friday's options expiration date, the Covered Calls position in Delta Air Lines Inc. (ticker DAL) closed out-of-the-money, so its Call options expired and the 400 shares remained in the Covered Calls Advisor Portfolio. Early in today's trading session I closed out this position at a net loss of $2,663.68 by selling the 400 shares of Delta at $57.24.  Along with other airlines companies, Delta's stock price has been punished because of the spike in oil prices since the start of the Iran War. The transactions history for this position and the associated return-on-investment results are detailed below.

Delta Air Lines Inc. (DAL) -- Closed Out Covered Calls Position
The buy/write transaction was:
2/17/2026 Bought 400 Delta Air Lines Inc. shares @ $70.07.
2/17/2026 Sold 4 Delta 3/6/2026 $65.00 Call options @ $5.99 per share.  The Implied Volatility of these Calls was 44.5% when this buy/write transaction occurred, which as preferred is well above the current 20.8% for the S&P 500 Volatility Index (i.e. VIX).
2/26/2026 Quarterly ex-dividend of $.1875 per share.

3/6/2026 Delta closed out-of-the-money at $59.01 per share, so the Call options expired and the 400 Delta shares remained in the Covered Calls Advisor Portfolio.

3/9/2026 Closed out this Delta Covered Calls position by selling 400 DAL shares at $57.24.

The overall performance results (including commissions) for this Delta Air Lines Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $25,634.68
= ($70.07 - $5.99) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$2,393.32
= ($5.99 * 400 shares) - $2.68 commission
(b) Dividend Income: +$75.00
= ($.1875 dividend per share x 400 shares)

(c) Capital Loss: -$5,132.00

+($57.24 stock sales price - $70.07 stock purchase price) * 400 shares

Total Net Loss: -$2,663.68

= (+$2,393.32 options income + $75.00 dividend income - $5,132.00 capital appreciation)

Absolute Return-on-Investment: -10.4%

= -$2,663.68/$25,634.68

Annualized Return-on-Investment (If Delta's shares assigned at $65.00 at the March 6th, 2026 expiration): -189.6%

= (-$2,663.68/$25,634.68) * (365/20 days)

March 6th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with March 6th, 2026 options expiration dates.  The position in Boeing Company closed in-the-money at $231.11 so the Call option expired and the 100 shares were called away (i.e. sold) at the $225.00 strike price.  The other position in Delta Air Lines Inc. closed out-of-the-money so the Call options expired and the shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions is as follows:

1. Boeing Company (BA) -- +1.4% absolute return (equivalent to +34.1% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $225.00 strike price since the stock closed in-the-money at $231.11 per share.  The original blog post detailing this Covered Call position is here. 

2. Delta Air Lines Inc. (DAL) -- This Covered Calls position closed yesterday at $59.01 which was well below its $65.00 strike price, so the four Call options expired and 400 Delta 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 four Call options against the 400 Delta Air Lines shares currently held or close out the position by selling these shares. 

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

Closed Covered Call Positions in Capital One Financial Corporation and KraneShares CSI China Internet ETF

Early in today's trading session, I closed out the Covered Call positions in Capital One Financial Corporation (COF) and KraneShares CSI China Internet ETF (KWEB).  In both positions, the stocks closed out-of-the-money on their options expiration dates and the stocks remained in the Covered Calls Advisor Portfolio.  The stocks have continued to decline, so closing them today resulted in a net loss of $830.67 from the Capital One position and $2,043.35 from the KWEB position.  Capital One has a large credit card business, and the stock is a casualty of current concerns related to private credit, but which has also impacted public companies in the credit card business.  In the case of KWEB, two key negative factors are the renewed trade tensions between the U.S. and China and also new concerns about slowing economic growth in the Chinese economy.  

Another reason for closing out these positions and increasing the money market fund component in my Covered Calls Advisor Portfolio stems from my concern on the potential for a significant decline in the overall market during the next several weeks while the war against Iran continues.  My total portfolio is now up by +1.9% for 2026 year-to-date and is only 0.8% below its all-time high which occurred on February 25th this year.   

The transactions history for these positions and the associated return-on-investment results are detailed below.

1. Capital One Financial Corporation (COF) -- Closed Out Covered Call Position
The buy/write transaction was:
2/5/2026 Bought 100 Capital One Financial shares @ $219.31
2/5/2026 Sold 1 Capital One 2/27/2026 $210.00 Call option @ $13.25 per share.  The Implied Volatility of the Calls was 36.5 when this transaction occurred which, as I prefer, is well above the current S&P 500 Volatility Index (i.e. VIX) of 20.6.
2/19/2026 Quarterly ex-dividend of $.80 per share
2/27/2026 Call option closed out-of-the-money, so the Call option expired and 100 COF shares remained in the Covered Calls Advisor Portfolio.
3/5/2026 Sold 100 shares of Capital One Financial at $196.96 per share.

The overall performance results (including commissions) for this Capital One Covered Call position are as follows:

Covered Call Net Investment: $20,606.67
= ($219.31 - $13.25) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$1,324.33
= ($13.25 * 100 shares) - $.67 commission
(b) Dividend Income: +$80.00
= ($.80 dividend per share x 100 shares)
(c) Capital Appreciation (COF shares sold at $196.96): -$2,235.00 = +($196.96 - $219.31) * 100 shares

Total Net Loss: -$830.67

= (+$1,324.33 option income +$80.00 dividend income - $2,235.00 capital appreciation)

Absolute Return-on-Investment: -4.0%

= -$830.67/$20,606.67

Annualized Return-on-Investment: -52.5%

= (-$830.67/$20,606.67) * (365/28 days)

2. KraneShares CSI China Internet ETF (KWEB) -- Closed Out Covered Calls Position 

The net debit limit Buy/Write transaction was as follows:
2/2/2026 Bought 500 shares of KraneShares CSI China Internet ETF @ $35.21 per share.  
2/2/2026 Sold 5 KWEB Feb. 13th, 2026 $34.50 Call options @ $1.14 per share.  The Implied Volatility of the Calls was 30.5 when this position was established.  

2/13/2026 Five Call options closed out-of-the-money, so the Call options expired and 500 KWEB shares remained in the Covered Calls Advisor Portfolio.

3/5/2026 Sold 500 KraneShares CSI China Internet ETF shares at $29.99 per share.

The overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows: 

KWEB Covered Calls Net Investment: $17,038.35

= ($35.21 - $1.14) * 500 shares + $3.35 commission

Net Profit:
(a) Options Income: +$566.65
= ($1.14 * 500 shares) - $3.35 commission
(b) Dividend Income: +$0.00
(c) Net Capital Loss: -$2,610.00
+($29.99 ETF sales price - $35.21 shares purchase price) * 500 shares

Total Net Loss: -$2,043.35
= (+$566.65 options income + $0.00 dividend income - $2,610.00 capital appreciation)

Absolute Return-on-Investment: -12.0%
= -$2,043.35/$17,038.35
Annualized Return-on-Investment: -141.2%
= (-$2,043.35/$17,038.35) * (365/31 days)