Established Covered Call Position in Expand Energy Corporation

This afternoon a small Covered Call position was established in Expand Energy Corporation (ticker EXE) using my Dividend Capture Strategy. My net debit limit order at the August 21st, 2026 $90.00 strike price was executed when one Expand Energy Call option was sold at $2.66 and 100 shares were bought simultaneously at $91.26 per share. The net debit was $88.60 per share and the Call option's time value profit potential was $1.40 [$2.66 option price - ($91.26 stock price - $90.00 strike price)].  The probability that the Call will be in-the-money (i.e. above the $90.00 strike price) on the 8/21/2026 options expiration date was 59.4% when this position was established. There is an intervening ex-dividend of $.575 per share (2.5% annual dividend yield) on August 13th which is included in the potential return-on-investment results detailed below.

Expand Energy Corp. is the largest independent natural gas producer in North America, focused on acquiring, developing, and producing natural gas, oil, and natural gas liquids from premier U.S. shale basins, with revenues generated through commodity sales and increasingly through marketing and logistics capabilities. Its business model emphasizes low-cost production, disciplined capital allocation, operational efficiency, and proximity to LNG export infrastructure to maximize long-term free cash flow and shareholder returns. It holds a leading competitive position in the U.S. natural gas industry following the merger of Chesapeake Energy and Southwestern Energy, giving it unmatched scale, high-quality acreage in the Haynesville and Appalachian basins, and one of the industry's deepest drilling inventories. While it competes with major producers such as EQT, Antero Resources, and Comstock Resources, its size, low-cost asset base, growing gas marketing capabilities, and strategic exposure to rising LNG exports position it as one of the industry's strongest long-term competitors.  

As detailed below, two potential return-on-investment results are: (1) +1.6% absolute return-on-investment (equivalent to a +72.1% annualized return-on-investment in 8 days if the Call option is exercised and the stock is therefore assigned on the last business day prior to the August 13th ex-dividend date; and (2) +2.2% absolute return-on-investment (equivalent to a +50.8% annualized return-on-investment in 16 days if the Expand Energy stock is in-the-money and the stock is assigned on its August 21st, 2026 options expiration date.

Expand Energy Corporation (EXE) -- New Covered Call Position
The Buy/Write transaction was as follows:
8/5/2026 Bought 100 shares of Expand Energy Corp. stock @ $91.26 per share.  
8/5/2026 Sold 1 Expand Energy August 21st, 2026 $90.00 Call option @ $2.66 per share.  The Implied Volatility of the Call option was 26.6 which, as preferred, is well above the current 15.5 of VIX.
8/13/2026 Upcoming ex-dividend of $.575 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Call Position Net Investment: $8,860.67
= ($91.26 - $2.66) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$266.00
= ($2.66 * 100 shares)
(b) Dividend Income (If option exercised early on Aug. 12th, the last business day prior to the August 13th ex-div date): +$0.00; or
(b) Dividend Income (If Expand Energy stock assigned at the Aug 21st, 2026 expiration): $57.50
= ($.575 dividend per share x 100 shares)
(c) Capital Appreciation (If Expand Energy Call option is assigned early on August 12th): -$126.00
+($90.00 strike price - $91.26 stock price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at the $90.00 strike price at the Aug. 21st options expiration): -$126.00
+($90.00 - $91.26) * 100 shares

1. Total Net Profit [If option exercised early on the last business day prior to the August 13th ex-dividend date)]: +$140.00

= (+$266.00 option income +$0.00 dividend income -$126.00 capital appreciation); or

2. Total Net Profit (If stock shares assigned at the $90.00 strike price at the Aug. 21st, 2026 expiration): +$197.50

= (+$266.00 option income + $57.50 dividend income - $126.00 capital appreciation)

1. Absolute Return-on-Investment (If option exercised early on August 13th): +1.6%

= +$140.00/$8,860.67

Annualized Return-on-Investment: +72.1%

= (+$140.00/$8,860.67) * (365/8 days); or

2. Absolute Return-on-Investment (If Expand Energy shares assigned at the $90.00 strike price and at the August 21st, 2026 options expiration date): +2.2%

= +$197.50/$8,860.67

Annualized Return-on-Investment (If shares assigned at the 8/21/2026 options expiration date): +50.8%

= (+$197.50/$8,860.67) * (365/16 days)

Covered Calls Position Established in Deckers Outdoor Corporation

This afternoon a buy/write net debit limit order was executed and 200 shares of Deckers Outdoor Corporation (ticker symbol DECK) stock were purchased at $99.58 and 2 August 21st, 2026 $95.00 Call options were sold at $6.26 per share -- a net debit of $93.32 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 $1.68 per share [$6.26 Call options premium - ($99.58 stock purchase price - $95.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 73.4% when this order was transacted. As preferred, the next quarterly earnings report on October 22nd, 2026 is after the August 21st options expiration date.  

Deckers is a branded footwear and apparel company that designs, markets, and distributes premium products under its flagship HOKA, UGG, and Teva brands, while outsourcing manufacturing and selling through both wholesale partners and its own direct-to-consumer e-commerce and retail channels. Its business model emphasizes brand development, product innovation, premium pricing, and a growing direct-to-consumer mix, which supports industry-leading gross margins and strong customer loyalty. Deckers currently holds one of the strongest competitive positions in the global premium footwear industry, driven by the rapid growth of HOKA in performance running and the enduring strength of UGG in lifestyle footwear, while Teva provides additional exposure to the outdoor category. Although it competes against much larger companies such as Nike, Adidas, and On Holding, Deckers has consistently gained market share through differentiated products, disciplined brand management, and strong profitability, making it one of the industry's highest-margin footwear companies.

Deckers passed all 25 criteria in my Quality + Growth stock screener:

As detailed below, a potential outcome for this Deckers investment is +1.8% absolute return-on-investment for the next 17 days (equivalent to +38.5% annualized-return-on-investment) if the stock closes above the $95.00 strike price on the August 21st, 2026 options expiration date.

Deckers Outdoor Corporation (DECK) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
8/4/2026 Bought 200 shares of Deckers Outdoor Corp. stock @ $99.58 per share.  
8/4/2026 Sold 2 DECK August 21st, 2026 $95.00 Call options @ $6.26 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 38.1 when this position was established which, as preferred, is well above the current VIX of 15.8.  

A possible overall performance result (including commissions) if this position is assigned on its 8/21/2026 options expiration date is as follows:
Covered Calls Net Investment: $18,665.34
= ($99.58 - $6.26) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,250.66
= ($6.26 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Deckers stock is above the $95.00 strike price at the 8/21/2026 options expiration date): -$916.00
= ($95.00 - $99.58) * 200 shares

Potential Total Net Profit (If assigned at expiration): +$334.66
= (+$1,250.66 options income + $0.00 dividend income - $916.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.8%
= +$334.66/$18,665.34
Potential Equivalent Annualized-Return-on-Investment: +38.5%
= (+$334.66/$18,665.34) * (365/17 days)

July 31st, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with July 31st, 2026 options expirations and both positions (Alphabet Corporation and Uber Technologies Inc.) were in-the-money (and therefore assigned) yesterday so they were closed out at their respective strike prices.  The return-on-investment summary for each position is as follows:

1. Alphabet Corporation (GOOGL) -- +0.9% absolute return-on-investment (equivalent to +40.0% annualized return-on-investment) for the 8 days of this investment.  This Alphabet Covered Call position had a $305.00 strike price and it closed yesterday at $356.13.  The original blog post showing the details of this position is here. 

2. Uber Technologies Inc. (UBER) -- +1.7% absolute return-on-investment (equivalent to +37.9% annualized return-on-investment) for the 16 days of this investment.  This Uber Covered Calls position had a $70.00 strike price and it closed at $70.36 yesterday.  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. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Call Position in D.R. Horton Inc.

This afternoon my Covered Call net debit limit order was entered and soon thereafter executed in D.R. Horton Inc. (ticker DHI) with a short-term August 14th, 2026 options expiration date.  One D.R. Horton Call option was sold at $7.99 at the $140.00 strike price when the stock price was $145.89 -- the net debit was $137.90 per share and the Call option's time value profit potential was $2.10 [$7.99 option price - ($145.89 stock price - $140.00 strike price)].  The probability that the Call will be in-the-money (i.e. above the $140.00 strike price) on the 814/2026 options expiration date was 69.4% when this position was established. There is an intervening ex-dividend of $.45 per share (1.2% annual dividend yield) on August 6th which is included in the potential return-on-investment results detailed below.

D.R. Horton is the largest homebuilder in America by market cap. Importantly, it is considered the best-in-class operator in its industry and has the highest exposure to the critically important entry-level buyers (67% of closings), lowest debt leverage, and least on-balance sheet land risk.  Although homebuilders' business has been stagnant during the past 3 years, home buyers' demand is strong but constricted by the current high mortgage interest rates.  Just yesterday the 30-year treasury bond yield hit an intraday high above 5.20% which was last seen two decades ago.  Whenever these rates begin to reverse (especially if below 4.5%), homebuilders' financials will begin to improve.  In the meantime, D.R. Horton will continue to manage their business wisely and profitably.  

As detailed below, two potential return-on-investment results are: (1) +1.3% absolute return-on-investment (equivalent to a +67.3% annualized return-on-investment in 7 days if the Call option is exercised and the stock is therefore assigned on the last business day prior to the August 6th ex-dividend date; and (2) +1.6% absolute return-on-investment (equivalent to a +39.4% annualized return-on-investment in 15 days if the DHI stock is in-the-money and the stock is assigned on its August 14th, 2026 options expiration date.

D.R. Horton Inc. (DHI) -- New Covered Call Position
The Buy/Write transaction was as follows:
7/30/2026 Bought 100 shares of D.R. Horton Inc. stock @ $145.89 per share.  
7/30/2026 Sold 1 D.R. Horton August 14th, 2026 $140.00 Call option @ $7.99 per share.  The Implied Volatility of the Call option was 35.8 which, as preferred, is well above the current 17.1 of VIX.
8/6/2026 Upcoming ex-dividend of $.45 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Call Position Net Investment: $13,787.67
= ($145.89 - $7.99) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$767.00
= ($7.67 * 100 shares)
(b) Dividend Income (If option exercised early on Aug. 5th, the last business day prior to the August 6th ex-div date): +$0.00; or
(b) Dividend Income (If DHI stock assigned at the Aug 14th, 2026 expiration): $45.00
= ($.45 dividend per share x 100 shares)
(c) Capital Appreciation (If D.R. Horton Call option is assigned early on August 6th): -$589.00
+($140.00 strike price - $145.89 stock price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $140.00 strike price at the Aug. 14th options expiration): -$589.00
+($140.00 - $145.89) * 100 shares

1. Total Net Profit [If option exercised early on the last business day prior to the August 6th ex-dividend date)]: +$178.00

= (+$767.00 option income +$0.00 dividend income -$589.00 capital appreciation); or

2. Total Net Profit (If stock shares assigned at $140.00 strike price at the Aug. 14th, 2026 expiration): +$223.00

= (+$767.00 option income + $45.00 dividend income - $589.00 capital appreciation)

1. Absolute Return-on-Investment (If option exercised early on August 5th): +1.3%

= +$178.00/$13,787.67

Annualized Return-on-Investment: +67.3%

= (+$178.00/$13,787.67) * (365/7 days); or

2. Absolute Return-on-Investment (If D.R. Horton shares assigned at $140.00 at the August 14th, 2026 options expiration date): +1.6%

= +$223.00/$13,787.67

Annualized Return-on-Investment (If shares assigned at the 8/14/2026 options expiration date): +39.4%

= (+$223.00/$13,787.67) * (365/15 days)