Covered Call Position Established in NVIDIA Corporation

A short-term (10 days) slightly in-the-money Covered Call position was established this afternoon in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $212.32 was executed when one hundred shares were purchased at $217.67 and one November 6th, 2026 Call option was simultaneously sold at the $217.50 strike price at $5.35 per share, which provides a $5.18 per share = [$5.35 Call option premium received - ($217.67 stock purchase price - $217.50 option strike price)] time value profit potential.  The probability that NVIDIA's stock will close in-the-money on the 11/6/2026 options expiration date was 50.0% when this transaction was executed.  Also, the next quarterly earnings report on November 17th is after the November 6th options expiration date. 

As detailed below, a potential return-on-investment result is +2.4% absolute return-on-investment (equivalent to +88.9% annualized return-on-investment for the next 10 days) if NVIDIA's share price is in-the-money (i.e. above the $217.50 strike price) and therefore assigned on its November 6th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
10/27/2026 Bought 100 NVIDIA Corporation shares at $217.67.

10/27/2026 Sold 1 NVIDIA 11/6/2026 $217.50 Call option @ $5.35 per share.  The Implied Volatility of this Call option was 35.8 when this position was established.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,232.67
= ($217.67 - $5.35) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$534.33
= ($5.35 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $217.50 strike price at expiration): -$17.00
+($217.50 strike price - $217.67 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $217.50 strike price at the options expiration date): +$517.33
= (+$534.33 option income + $0.00 dividend income - $17.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.4%
= +$517.33/$21,232.67
Potential Annualized Return-on-Investment: +88.9%
= (+$517.33/$21,232.67) * (365/10 days)

Covered Call Positions Closed in Akamai Technologies Inc. and AppLovin Corporation

On Friday October 16th, the Covered Call position in Akamai Technologies Inc. (ticker AKAM) closed out-of-the-money at $87.81 which was well below its $105.00 strike price.  Today I decided to close out this position by selling the 100 AKAM shares.  So early in this morning's trading session, I closed out the position at a net loss of $554.67 when I sold the 100 Akamai Technologies shares at $96.00.  

Last Friday on October 23rd, the Covered Call position in AppLovin Corporation (ticker APP) closed out-of-the-money at $260.25 which was below its $262.50 strike price.  Today I closed out this position by selling the 100 AppLovin shares at a net profit of $459.33 when I sold the 100 AppLovin shares at $262.00.  

The transactions history for both Covered Call positions and their associated return-on-investment results are detailed below.

 

1. Akamai Technologies Inc. (AKAM) -- Closed Out this 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.

10/16/2026 One Akamai $105.00 Call option closed out-of-the-money at $87.81, so the Call expired and 100 AKAM shares remained in the Covered Calls Advisor Portfolio.

10/26/2026 Closed out this Covered Call position by selling the 100 Akamai shares at $96.00 per share. 

The overall performance result (including commissions) was 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 (Akamai stock sold at $96.00): -$1,411.00
= ($96.00 stock selling price - $110.11 stock purchase price) * 100 shares

Total Net Loss: -$554.67
= (+$856.33 option income + $0.00 dividend income - $1,411.00 capital appreciation)

Absolute Return-on-Investment: -5.5%
= -$554.67/$10,154.67
Equivalent Annualized Return-on-Investment: -71.2%
= (-$554.67/$10,154.67) * (365/28 days)

    

2. AppLovin Corporation (APP) -- Closed Out this Covered Call Position

The simultaneous buy/write transaction was as follows:
10/9/2026 Bought 100 shares of AppLovin stock @ $276.98 per share.  
10/9/2026 Sold 1 AppLovin October 23rd $262.50 Call option @ $19.58 per share.

10/23/2026 One AppLovin $262.50 Call option closed out-of-the-money at $260.25, so the Call expired and 100 AppLovin shares remained in the Covered Calls Advisor Portfolio.

10/26/2026 Closed out this Covered Call position by selling the 100 AppLovin shares at $262.00 per share.

The overall performance result (including commissions) was as follows:
Covered Call Cost Basis: $25,740.67
= ($276.98 - $19.58) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,957.33
= ($19.58 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (AppLovin stock sold at $262.00 per share): -$1,498.00
= ($262.00 stock selling price - $276.98 stock purchase price) * 100 shares

Total Net Profit: +$459.33
= (+$1,957.33 option income + $0.00 dividend income - $1,498.00 capital appreciation)

Absolute Return-on-Investment: +1.8%
= +$459.33/$25,740.67
Equivalent Annualized Return-on-Investment: +38.3%
= (+$459.33/$25,740.67) * (365/17 days)

October 23rd, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions (Alphabet Inc. and AppLovin Corporation with October 23rd, 2026 options expiration dates.  Both positions closed out-of-the-money so the Call options expired and the shares remain in the Covered Calls Advisor Portfolio.  A summary for each of these positions is as follows:

1. Alphabet Inc. (GOOGL) -- This Covered Call position closed yesterday at $321.15 which was below its $340.00 strike price, so the one Call option expired and 100 Alphabet Inc. 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 one Call option against the 100 Alphabet shares currently held or close out the position by selling these shares. 

2. AppLovin Corporation (APP) -- This Covered Call position closed yesterday at $260.60 which was below its $262.50 strike price, so the one Call option expired and 100 AppLovin 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 one Call option against the 100 AppLovin 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

Continuation of Covered Call Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Call position in NVIDIA Corporation (ticker NVDA) with 100 shares which expired last Friday with the stock at $214.13 which was below the $230.00 strike price. Today this position was continued by rolling down-and-out to the October 30th, 2026 options expiration date at the $225.00 strike price by selling-to-open one NVDA Call at $3.30 per share today when NVIDIA's stock price was $220.76.  As preferred, the next NVIDIA quarterly earnings report is not until November 17th, which is after the October 30th, 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 October 30th, 2026 options expiration date is +0.1% absolute return-on-investment over 23 days (equivalent to +2.1% annualized-return-on-investment) if the stock closes above the $225.00 strike price on the 10/30/2026 options expiration date. The details showing this potential return-on-investment result are as follows:

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

The original buy/write net debit limit order transaction was as follows:

10/7/2026 Bought 100 NVIDIA Corporation shares at $236.93.

10/7/2026 Sold 1 NVIDIA 10/16/2026 $230.00 Call option @ $8.95 per share.  The Implied Volatility of this Call option was 30.9 when this position was established.

10/16/2026 One hundred NVIDIA shares closed below the $230.00 strike price at $214.13, so the Call option expired and the 100 NVIDIA shares remained in the Covered Calls Advisor Portfolio.

10/21/2026 Continued this NVIDIA Covered Call position by selling-to-open 1 October 30th, 2026 $225.00 Call option at $3.30 per share when the NVDA stock was trading at $220.76 per share.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position if the stock is in-the-money and therefore assigned on the 10/30/2026 options expiration date is as follows:

Covered Call Net Investment: $22,798.67
= ($236.93 - $8.95) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,223.66
= ($8.95 + $3.30) * 100 shares) - $1.34 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $225.00 strike price at expiration): -$1,193.00
+($225.00 strike price - $236.93 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $225.00 strike price at the options expiration date): +30.66
= (+$1,223.66 option income + $0.00 dividend income - $1,193.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.1%
= +$30.66/$22,798.67
Potential Annualized Return-on-Investment: +2.1%
= (+$30.66/$22,798.67) * (365/23 days)