Covered Call Position Established in Akamai Technologies Inc.

This morning at 10:53 am, my in-the-money Covered Call net-debit buy/write limit order was transacted in Akamai Technologies Inc. (ticker AKAM) for the October 16th, 2026 expiration and at the $105.00 strike price.  Since Akamai's announcement last week that a new $11.6 billion 7-year commitment from Anthropic to support its CPU workload that will use Akamai Cloud's infrastructure, several Wall Street firms have raised their price targets citing a significantly positive outlook for Akamai's future revenue and profit growth estimates.  The average target price of the 20 analysts following Akamai is now $159.71 (+45% above today's stock purchase price).

This morning's net-debit limit order was placed at a $101.54, so the extrinsic value (which represents the maximum profit potential for this position) was $3.46 per share [$8.57 Call option premium - ($110.11 stock purchase price - $105.00 strike price)].  The Implied Volatility of the Call option was high at 58.9% and the probability that this position will be in-the-money and therefore assigned on its October 16th options expiration date was 61.9% when this order was transacted.

Akamai is a $16 Billion market cap company headed by CEO and Co-Founder Tom Leighton who was a Professor of Applied Math at MIT in 1998 when the company was founded and he has been CEO now for 13 years.  Akamai's business model is increasingly a cybersecurity and cloud-infrastructure company, with its traditional content-delivery business now becoming a smaller part of the mix. In 2025, Security generated $2.24B, or 53% of revenue, Delivery $1.26B, or 30%, and Cloud Computing $708M, or 17%; security was also the fastest-growing major business at 10%, versus a 5% decline in Delivery and 12% growth in Cloud Computing.  The shift is continuing in 2026: in Q2, Security represented 55% of revenue and grew 10%, while Delivery/other cloud applications represented 36% and declined 6%, and Cloud Infrastructure Services represented 9% but grew 39%. 

As detailed below, the potential return-on-investment result is +3.4% absolute return-on-investment in 18 days (equivalent to a +69.0% annualized return-on-investment).  

Akamai Technologies Inc. (AKAM) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
9/28/2026 Bought 100 shares of Akamai Technologies stock @ $110.11 per share.  
9/28/2026 Sold 1 Akamai October 16th, 2026 $105.00 Call option @ $8.57 per share.

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $10,154.67
= ($110.11 - $8.57) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$856.33
= ($8.57 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Akamai stock is above the $105.00 strike price at the 10/16/2026 options expiration date): -$511.00
= ($105.00 strike price - $110.11 stock purchase price) * 100 shares

Total Net Profit Potential: +$345.33
= (+$856.33 option income + $0.00 dividend income - $511.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.4%
= +$345.33/$10,154.67
Potential Equivalent Annualized Return-on-Investment: +69.0%
= (+$345.33/$10,154.67) * (365/18 days)

    

Covered Calls Position Established in Uber Technologies Inc.

During the first half hour in this morning's trading session, my in-the-money Covered Calls net-debit limit order was transacted and 300 shares of Uber Technologies Inc. (ticker symbol UBER) stock were purchased at $67.91 and 3 October 16th, 2026 $66.00 Call options were sold at $3.29 per share -- a net debit of $64.62 ($67.91 - $3.29) per share.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $1.38 per share [$3.29 Call options premium - ($67.91 stock purchase price - $66.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 63.3% when this order was transacted.

As preferred, the next quarterly earnings report on November 3rd, 2026 is after the October 16th options expiration date.  Also as shown below, Uber appeared on my Quality+Growth stock screener by passing all criteria therein (including that the average Wall Street analysts' target price which is +50.5% above today's stock purchase price):

  

As detailed below, a potential outcome for this Uber Technologies investment is +2.1% absolute return-on-investment for the next 18 days (equivalent to +43.1% annualized-return-on-investment) if the stock closes above the $66.00 strike price on the October 16th, 2026 options expiration date.

Uber Technologies Inc. (UBER) -- New Covered Calls Position

The net-debit buy/write limit order was executed as follows:
9/28/2026 Bought 300 shares of Uber Technologies Inc. stock @ $67.91 per share.  
9/28/2026 Sold 3 Uber October 16th, 2026 $66.00 Call options @ $3.29 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 36.1 when this position was established which, as preferred, is well above the current VIX of 15.9.  

A possible overall performance result (including commissions) if this position is assigned on its 10/16/2026 options expiration date is as follows:
Covered Calls Net Investment: $19,388.01
= ($67.91 - $3.29) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$984.99
= ($3.29 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $66.00 strike price at the 10/16/2026 options expiration date): -$573.00
= ($66.00 - $67.91) * 300 shares

Potential Total Net Profit (If assigned at expiration): +$411.99
= (+$984.99 options income + $0.00 dividend income - $573.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.1%
= +$411.99/$19,388.01
Potential Equivalent Annualized-Return-on-Investment: +43.1%
= (+$411.99/$19,388.01) * (365/18 days)

September 25th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Call positions with September 25th, 2026 options expirations and both positions (Newmont Corporation and Uber Technologies Inc.) were in-the-money and therefore assigned yesterday, so the Call options expired and both Covered Call positions were closed out by selling the stocks at their respective strike prices.  The return-on-investment summary for each position is as follows:

1. Newmont Corporation (NEM) -- +1.5% absolute return-on-investment (equivalent to +56.3% annualized return-on-investment) for the 10 days of this investment.  This Newmont Covered Calls position had a $118.00 strike price and it closed in-the-money at $121.43 yesterday.  The original blog post showing the details of this position is here. 

2. Uber Technologies Inc. (UBER) -- +1.8% absolute return-on-investment (equivalent to +40.8% annualized return-on-investment) for the 16 days of this investment.  This Uber Covered Calls position had a $69.00 strike price and it closed in-the-money at $69.62 yesterday.  Even though the stock price declined from my original purchase price from $71.23 to $69.62 yesterday (a -2.3% price decline), establishing an in-the-money strike price gave me sufficient downside protection to still achieve the maximum potential annualized return-on-investment for this Covered Calls position.  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.  As always, any new positions I establish will continue to be posted on this blog site when they occur.  

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls Position in Bristol-Myers Squibb Company

A new Covered Calls position of 15 days duration was established today in Bristol-Myers Squibb Company (ticker BMY).  My buy/write net debit limit order at $59.38 was executed and the time value was $.62 per share [$1.57 Call options premium - ($60.95 stock purchase price - $60.00 strike price)].  An in-the-money strike price was established with the probability that this Bristol Myers stock will close in-the-money (i.e. above the $60.00 strike price) on the 9/11/2026 options expiration date was 63.1% when this transaction was executed.  As preferred, their next quarterly earnings report on October 29th is well after the October 9th options expiration date. 

This Bristol Myers Covered Calls position was established to take advantage of my Dividend Capture Strategy (see details here) since there is an upcoming quarterly ex-dividend of $.63 per share (4.1% dividend yield) on October 2nd, 2026.  So, two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment on the last business day prior to the ex-dividend date and on the October 9th options expiration date if instead BMY's stock price is in-the-money on its October 9th, 2026 options expiration date.  

Bristol Myers Squibb is a global biopharmaceutical company that discovers, develops, manufactures, and sells prescription medicines, with a focus on oncology, immunology, cardiovascular disease, and neuroscience. Its largest products include Eliquis for preventing blood clots and stroke, Opdivo for cancer, Pomalyst/Imnovid and Abecma for blood cancers, and Camzyos for certain heart conditions. The company generates most of its revenue from a portfolio of established drugs while investing heavily in research and development to replace revenue as patents expire and to expand newer products. Bristol Myers Squibb's business model therefore combines high-margin pharmaceutical sales with substantial R&D spending, acquisitions/licensing, and ongoing development of its pipeline to support longer-term growth.

As detailed below, a potential return-on-investment result if Bristol Myers share price is: (1) +1.0% absolute return-on-investment (equivalent to +47.1% annualized return-on-investment for the next 8 days) if the stock is assigned early on October 1st (the last day before the ex-dividend date); OR (2) +2.1% absolute return-on-investment (equivalent to +50.9% annualized return-on-investment for the next 15 days) if the stock is instead in-the-money (i.e. above the $60.00 strike price) and therefore assigned on its October 9th, 2026 options expiration date.

Bristol-Myers Squibb Company (BMY) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
9/24/2026 Bought 200 Bristol-Myers Squibb Company shares at $60.95.

9/24/2026 Sold 2 BMY 9/11/2026 $60.00 Call options @ $1.57 per share.  The Implied Volatility of these Calls was 21.6 when this position was established, which is above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) which was 15.7.

Two possible overall performance results (including commissions) for this Bristol Myers Covered Calls position are as follows:
Covered Calls Cost Basis: $11,877.34
= ($60.95 - $1.57) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$312.66
= ($1.57 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on October 1st, the last business day prior to the October 2nd ex-dividend date): +$0.00; or
(b) Dividend Income (If Bristol Myers shares assigned at the October 9th, 2026 options expiration): +$126.00 = ($.63 dividend per share x 200 shares)

(c) Capital Appreciation (If BMY Call options assigned early on October 2nd): -$190.00

+($60.00 strike price - $60.95 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $60.00 strike price at the 10/9/2026 options expiration): -$190.00
+($60.00 - $60.95) * 200 shares

1. Total Net Profit [If option exercised early on the last business day prior to the Oct. 2nd ex-dividend date)]: +$122.66

= (+$312.66 options income + $0.00 dividend income - $190.00 capital appreciation); or

2. Total Net Profit (If Bristol Myers shares assigned at $60.00 strike price at the Oct. 9th, 2026 expiration): +$248.66

= (+$312.66 options income + $126.00 dividend income - $190.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If option exercised early on 10/2/2026): +1.0%

= +$122.66/$11,877.34

Potential Annualized Return-on-Investment: +47.1%

= (+$122.66/$11,877.34) * (365/8 days); or

2. Potential Absolute Return-on-Investment (If BMY shares assigned at $60.00 at the October 9th, 2026 options expiration date): +2.1%

= +$248.66/$11,877.34

Potential Annualized Return-on-Investment (If Bristol Myers shares assigned at the Oct. 9th, 2026 options expiration date): +50.9%

= (+$248.66/$11,877.34) * (365/15 days)