Covered Calls Position Established in Dexcom Inc.

Early in this morning's trading session, a Covered Calls position in Dexcom Inc. (DXCM) was established when three hundred shares were purchased at $63.42 and three April 24th, 2026 Call options were sold at $3.46 per share at the $61.00 strike price.  The buy/write net debit limit order at $59.96 was executed, so the time value was $1.04 per share [$3.46 Call options premium - ($63.42 stock purchase price - $61.00 strike price)].  As I prefer, Dexcom's next quarterly earnings report on April 30th, 2026 is after the April 24th, 2026 options expiration date.  Given the Covered Calls Advisor's current cautious market outlook, an in-the-money Covered Calls position was established with a 69.5% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Dexcom designs and commercializes continuous glucose monitoring (CGM) systems for diabetic patients.  It is evolving its CGM systems to provide integration with insulin pumps from Insulet and Tandem for automatic insulin delivery.  Dexcom appeared in my "Quality + Growth" stock screener which is shown below.  Dexcom passed all 25 of the screener's criteria including the fact that the average target price of the 25 analysts currently covering the company is +37.2% above today's stock purchase price.

  

As detailed below, a potential return-on-investment result is +1.7% absolute return-on-investment (equivalent to +57.2% annualized return-on-investment over the next 11 days) if the stock is assigned on the April 24th, 2026 options expiration date.

Dexcom Inc. (DXCM) -- New Covered Calls Position
The simultaneous buy/write transaction today was as follows:
4/13/2026 Bought 300 Dexcom Inc. shares @ $63.42
4/13/2026 Sold 3 DXCM 4/24/2026 $61.00 Call options @ $3.46 per share
Note: the Implied Volatility of the Calls was 43.2 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 20.2.

A possible overall performance result (including commissions) for this Dexcom Covered Calls position if assigned on the options expiration date is as follows:
Covered Calls Cost Basis: $17,990.01
= ($63.42 - $3.46) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,035.99
= ($3.46 * 300 shares) - $2.01 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Dexcom shares assigned at the $61.00 strike price on the options expiration date): -$726.00
+($61.00 - $63.42) * 300 shares

Total Net Profit (If Dexcom shares assigned at the $66.00 strike price at the 1/30/2026 expiration): +$309.99

= (+$1,035.99 + $0.00 - $726.00)

Absolute Return-on-Investment (If DXCM shares assigned at the $61.00 strike price on the April 24th, 2026 options expiration date): +1.7%

= +$309.99/$17,990.01

Annualized Return-on-Investment (If Dexcom stock assigned at $61.00 at the 4/24/2026 options expiration date): +57.2%

= (+$309.99/$17,990.01) * (365/11 days)

April 10th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with April 10th, 2026 options expirations and all four positions (Bank of America Corporation, Cardinal Health Inc., The Cigna Group, and NVIDIA Corporation) closed with their stock prices in-the-money.  So, their Calls expired with no remaining value and the Covered Calls were closed out by the stocks being sold at their respective strike prices on their April 10th options expiration date. The return-on-investment details (in alphabetical order) for each position is as follows:

1. Bank of America Corporation (BAC) -- +1.9% absolute return-on-investment (equivalent to +13.9% annualized return-on-investment) for the 49 days of this investment.  This Bank of America Covered Calls position had a $47.50 strike price and it closed at $52.54 yesterday.  The most recent blog post showing the details of this position is here. 

2. Cardinal Health Inc. (CAH) -- +1.6% absolute return-on-investment (equivalent to +33.4% annualized return-on-investment) for the 18 days of this investment.  This Cardinal Health position had a $197.50 strike price and it closed at $215.52 yesterday.  The original blog post showing the details of this position is here. 

3. Nvidia Corporation (NVDA) -- +6.7% absolute return-on-investment (equivalent to +58.2% annualized return-on-investment) for the 42 days of this investment.  This NVIDIA position had a $175.00 strike price and it closed at $188.63 yesterday.  The most recent blog post showing the details of this position is here.

4. The Cigna Group (CI) -- +3.4% absolute return-on-investment (equivalent to +24.8% annualized return-on-investment) for the 50 days of this investment.  This Cigna position had a $265.00 strike price and it closed at $271.25 yesterday.  The most recent blog post showing the details of this position is here.

So far year-to-date, the S&P 500 index is -0.4% and my Covered Calls Advisor Portfolio is +2.5%.

I look forward to receiving your emails with your questions/comments at the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Closed Covered Call Positions in Microsoft Corporation and NVIDIA Corporation

The Covered Call positions in Microsoft Corporation (ticker MSFT) and NVIDIA Corporation (NVDA) closed out-of-the-money at last Thursday's options expiration date, so their Call options expired and their shares remained in the Covered Calls Advisor Portfolio. Early in today's trading session I closed out both positions by selling the 100 Microsoft and the 200 NVIDIA shares.  The transactions history for both positions and their associated return-on-investment results are detailed below.

1. Microsoft Corporation (MSFT) -- Covered Call Position Closed Out

This Covered Call position transactions are as follows:
3/18/2026 Bought 100 shares of Microsoft stock @ $395.625 per share.  
3/18/2026 Sold 1 MSFT April 2nd, 2026 $385.00 Call option @ $17.55 per share.  The Implied Volatility of the Call was 29.8 when this transaction was executed.

4/2/2026 The Call option expired out-of-the-money at $373.46 and 100 Microsoft shares remain in the Covered Calls Advisor Portfolio.
4/6/2026 Closed out this Covered Call position by selling the 100 Microsoft shares at $373.42.

The overall performance result (including commissions) for this Microsoft Covered Call position is as follows:
Microsoft Covered Call Net Investment: $37,808.17
= ($395.625 - $17.55) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,754.33
= ($17.55 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (100 Microsoft shares sold on 4/6/2026 at $373.42): -$2,220.50
= ($373.42 stock selling price - $395.625 stock purchase price) * 100 shares

Total Net Loss: -$466.17
= (+$1,754.33 option income + $0.00 dividend income - $2,220.50 capital appreciation)

Absolute Return-on-Investment: -1.2%
= -$466.17/$37,808.17
Equivalent Annualized-Return-on-Investment: -23.7%
= (-$466.17/$37,808.17) * (365/19 days)

2. NVIDIA Corporation (NVDA) -- Covered Calls Position Closed Out

The buy/write net limit order transaction was as follows:
3/20/2026 Bought 200 NVIDIA Corporation shares at $177.13.

3/20/2026 Sold 2 NVIDIA 4/2/2026 $177.50 Call options @ $4.93 per share.  The Implied Volatility of these Calls was 37.3 when this position was established, which is well above (as preferred) the VIX which was 25.0.  
4/2/2026 The Call options expired out-of-the-money at $177.39 and 200 NVIDIA shares remain in the Covered Calls Advisor Portfolio.
4/6/2026 Closed out this Covered Calls position by selling the 200 NVIDIA shares at $177.46.

The overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $34,441.34
= ($177.13 - $4.93) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$984.66
= ($4.93 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (200 NVIDIA shares sold on 4/6/2026 at $177.46 per share): +$66.00
+($177.46 shares sales price - $177.13 stock purchase price) * 200 shares

Total Net Profit (200 NVIDIA shares sold at $177.46 on 4/6/2026): +$1,050.66

= (+$984.66 options income + $0.00 dividend income + $66.00 capital appreciation)

Absolute Return-on-Investment: +3.1%

= (+$1,050.66/$34,441.34)

Potential Annualized Return-on-Investment: +65.5%
= (+$1,050.66/$34,441.34) * (365/17 days)

April 2nd, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with April 2nd, 2026 options expiration dates.  

• Two positions in Boeing Company and Sea Ltd. ADR closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices -- so both positions achieved their maximum potential return-on-investment results.  
• Two positions in Microsoft Corporation and NVIDIA Corporation closed out-of-the-money so their Call options expired and the shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions (in alphabetical order) is as follows:

1. Boeing Company (BA) -- +1.4% absolute return (equivalent to +57.3% annualized return-on-investment) for the 9 days of this investment.  This Covered Call position was assigned at the $187.50 strike price since the stock closed in-the-money at $208.22 per share.  The original blog post detailing this Covered Call position is here. 

2. Microsoft Corporation (MSFT) -- This Covered Call position closed yesterday at $373.46 which was well below its $385.00 strike price, so the one Call option expired and 100 Microsoft 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 a Call option against the 100 Microsoft shares currently held or close out the position by selling these shares. 

3. NVIDIA Corporation (NVDA) -- This Covered Calls position closed yesterday at $177.39 which was very slightly below its $177.50 strike price, so the two Call options expired and 200 NVIDIA 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 two Call options against the 200 NVIDIA shares currently held (most likely) or close out the position by selling these shares.

4. Sea Ltd. ADR (SE) -- +2.2% absolute return (equivalent to +57.3% annualized return-on-investment) for the 14 days of this investment.  This Covered Calls position was assigned at the $75.00 strike price since the stock closed in-the-money at $82.28 per share.  The most recent blog post detailing this Covered Call position is here. 

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