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)

Established Covered Call in NVIDIA Corporation

A Covered Call position of 15 days duration was established today in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $211.98 was executed and the time value (aka extrinsic value) was $3.02 per share [$9.85 Call option premium - ($221.83 stock purchase price - $215.00 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 $215.00 strike price) on the 10/9/2026 options expiration date was 68.3% when this transaction was executed.  NVIDIA's next earnings report is on 11/17/2026 which, as preferred, is after the 10/9/2026 options expiration date.   

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $215.00 strike price) and therefore assigned on its October 9th, 2026 options expiration date is +1.4% absolute return-on-investment (equivalent to +34.6% annualized return-on-investment for the next 15 days).  

NVIDIA Corporation (NVDA) -- New Covered Call Position

The buy/write net limit order transaction was as follows:
9/24/2026 Bought 100 NVIDIA Corporation shares at $221.83.  

9/24/2026 Sold 1 NVIDIA 10/9/2026 $215.00 Call option @ $9.85 per share.  The Implied Volatility of this Call was 31.6 when this position was established, which is above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 15.9.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,198.67
= ($221.83 - $9.85) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$984.33
= ($9.85 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $215.00 strike price) on the 10/9/2026 options expiration date): -$683.00
+($215.00 strike price - $221.83 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares are in-the money and therefore assigned at the $215.00 strike price on the 10/9/2026 options expiration date): +$301.33

= (+$984.33 option income + $0.00 dividend income - $683.00 capital appreciation)

Potential Absolute Return-on-Investment (If 100 NVIDIA shares assigned (i.e. sold) at the $215.00 strike price on the 10/9/2026 options expiration date): +1.4%

= (+$301.33/$21,198.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $215.00 strike price on the 10/9/2026 options expiration date): +34.6%
= (+$301.33/$21,198.67) * (365/15 days)

Established Covered Calls in Gap Inc.

This morning a short-term Covered Calls position was established in Gap Inc. (ticker symbol GAP) when 600 shares were purchased at $21.23 and 6 October 9th, 2026 Call options were sold at $1.03 per share at the $20.50 strike price.  The buy/write net debit limit order at $20.20 was executed, so the potential time value profit was $.30 per share [$1.03 Call options premium - ($21.23 stock purchase price - $20.50 strike price)]. 

This Gap 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 $.175 per share (3.3% dividend yield) on October 7th, 2026.  So, two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment since the ex-dividend is only 2 days prior to the October 9th, 2026 options expiration date.  An in-the-money Covered Calls position was established with the probability of the stock closing in-the-money (and therefore being assigned) on the 10/9/2026 options expiration date was 67.3%.  Also, there is no quarterly earnings report prior to the options expiration date. 

Gap, Inc. operates as an apparel retail company that offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Management expects modest net sales growth of 1% to 2% year-over-year, alongside an improved full-year adjusted operating margin of approximately 7.4% to 7.6%.  Gap trades at a trailing P/E ratio of roughly 6.4x, which is notably lower than its historical 10-year median and below the broader cyclical retail industry median.   

Gap did not appear in any of my stock screeners, but CFRA, Morningstar, and LSEG all have a Buy rating on the company.  The 22 Wall Street analysts that cover the company rate it as a 'Buy' on average with a mean target price of $26.42 (+24.4% above today's purchase price).

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

•  +1.5% absolute return (equivalent to +40.8% annualized return-on-investment for the next 13 days) if the Calls are assigned early (on the last business day prior to the October 7th, 2026 ex-dividend date); OR 

• +2.3% absolute return (equivalent to +56.4% annualized return-on-investment over the next 15 days) if the stock is assigned on the October 9th, 2026 options expiration date.

Gap Inc. (GAP) -- New Covered Calls Position
The buy/write transaction was:

9/24/2025 Bought 600 Gap Inc. shares @ $21.23
9/24/2025 Sold 6 Gap 10/9/2026 $20.50 Call options @ $1.03
Note: the Implied Volatility of the Call options was 35.4 when this buy/write transaction was executed.
10/7/2026 Upcoming quarterly ex-dividend of $.175 per share

Two possible overall performance results (including commissions) for this Gap Inc. Covered Calls position are as follows:
Covered Calls Cost Basis: $12,124.02
= ($21.23 - $1.03) * 600 shares + $4.02 commission

Net Profit Components:
(a) Options Income: +$613.98
= ($1.03 * 600 shares) - $4.02 commission
(b) Dividend Income (If option exercised early on Oct. 6th, the last business day prior to the October 7th ex-dividend date): +$0.00; or
(b) Dividend Income (If Gap shares assigned at the October 9th, 2026 options expiration): +$105.00 = ($.175 dividend per share x 600 shares)

(c) Capital Appreciation (If Gap Call options assigned early on October 7th): -$438.00

+($20.50 strike price - $21.23 stock purchase price) * 600 shares; or
(c) Capital Appreciation (If shares assigned at $20.50 strike price at the 10/9/2026 options expiration): -$438.00
+($20.50 - $21.23) * 600 shares

1. Total Net Profit [If option exercised early on the last business day prior to the Oct. 7th ex-dividend date)]: +$175.98

= (+$613.98 options income + $0.00 dividend income - $438.00 capital appreciation); or

2. Total Net Profit (If Gap shares assigned at $20.50 strike price at the Oct. 9th, 2026 expiration): +$280.98

= (+$613.98 options income + $105.00 dividend income - $438.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If option exercised early on 10/7/2026): +1.5%

= +$175.98/$12,124.02

Potential Annualized Return-on-Investment: +40.8%

= (+$175.98/$12,124.02) * (365/13 days); or

2. Potential Absolute Return-on-Investment (If Gap Inc. shares assigned at $20.50 at the January 9th, 2026 options expiration date): +2.3%

= +$280.98/$12,124.02

Potential Annualized Return-on-Investment (If Gap shares assigned at the Oct. 9th, 2026 options expiration date): +56.4%

= (+$280.98/$12,124.02) * (365/15 days)

Covered Call Position Established in Alphabet Inc.

A new short-term Covered Call net debit buy/write limit order was transacted in today's late morning trading session in Alphabet Inc. (ticker GOOGL) for the October 2nd, 2026 expiration and at the $330.00 strike price.  The order was placed at a $326.92 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $3.08 per share [$13.75 Call option premium - ($340.67 stock purchase price - $330.00 strike price)].  The probability that this position will be in-the-money and therefore assigned on its options expiration date was 72.8% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 9 days (equivalent to a +38.1% annualized return-on-investment).  

Alphabet Inc. (GOOGL) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
9/23/2026 Bought 100 shares of Alphabet Inc. stock @ $340.67 per share.  
9/23/2026 Sold 1 Alphabet Inc. October 2nd $330.00 Call option @ $13.75 per share.
Note: The Implied Volatility of the Call option was approximately 32.7 when this transaction was executed which, as I prefer, is well above the current 14.7 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $32,692.67
= ($340.67 - $13.75) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,374.33
= ($13.75 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $330.00 strike price at the 10/2/2026 options expiration date): -$1,067.00
= ($330.00 strike price - $340.67 stock purchase price) * 100 shares

Total Net Profit Potential: +$307.33
= (+$1,374.33 option income + $0.00 dividend income - $1,067.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$307.33/$32,692.67
Potential Equivalent Annualized Return-on-Investment: +38.1%
= (+$307.33/$32,692.67) * (365/9 days)