Established Covered Calls Position in Citigroup Inc.

This morning a Covered Calls position was established in Citigroup Inc. (ticker symbol C) using my Dividend Capture Strategy (see description here) when 300 shares were purchased at $128.73 and 3 May 8th, 2026 Call options were sold at $5.31 per share at the $125.00 strike price.  The net debit limit order at $123.42 was executed, so the time value was $1.58 per share [$5.31 Call options premium - ($128.73 stock purchase price - $125.00 strike price)]. There is also an upcoming quarterly ex-dividend of $.60 per share on May 4th (a current annual dividend yield of 1.9%), so two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment since the ex-dividend is prior to the May 8th, 2026 options expiration date.  

Citigroup's earnings report two weeks ago was very positive. Also, since their next earnings report is not until July 14, 2026, there is no earnings report prior to the options expiration date.  From a technical indicators viewpoint, Market Edge's current rating of Citigroup is a "Strong Buy".  An in-the-money Covered Calls position was established when the probability of the stock closing in-the-money (and therefore being assigned) on the 5/8/2026 options expiration date was 67.1%. The average target price of the analysts covering Citigroup Inc. stock is $141.59 (+10.0% above today's stock purchase price).

Most companies in the Financial Sector provide only modest growth prospects, but they often provide good annual dividend yields (such as the 1.9% annual dividend yield for this Citigroup position).  Consequently, the Covered Calls Advisor targets opportunities to use the Dividend Capture Strategy in all Financial Sector Covered Calls positions.  This new May 8th, 2026 Citigroup Covered Calls position continues the Dividend Capture Strategy of often selling in-the-money monthly Covered Calls for one of six megacap U.S. banks (Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo) for each options expiration month:
(JPMorgan Chase quarterly for Jan, Apr, July, and Oct options expirations;
Citigroup, Morgan Stanley, and/or Wells Fargo for Feb, May, Aug, and Nov options expirations; and Bank of America and/or Goldman Sachs for Mar, Jun, Sep, and Dec options expirations). 

The goal of these monthly Covered Calls in these banks is to both provide an opportunity to either: (1) potentially capture the quarterly dividend payment and if the stock price remains above the strike price at options expiration, the maximum possible return-on-investment result on the options expiration date would be achieved; or (2) have the stock assigned early on the last trading day prior to the ex-dividend date in which case the Covered Calls Advisor is usually very pleased since the Dividend Capture Strategy criteria are designed such that often the annualized return-on-investment for early assignment is close to or somewhat greater than what would be achieved if the stock was instead assigned on its options expiration date.  So far, applying this approach has provided attractive annualized return results -- significantly better than would be achieved if Covered Calls positions for these bank stocks were instead held in the Covered Calls Advisor Portfolio in the other two non-dividend paying months each quarter.   

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

•  +1.3% absolute return (equivalent to +77.5% annualized return-on-investment for the next 6 days) if the stock is assigned early (on the last business day prior to the May 4th, 2026 ex-dividend date); OR 

• +1.8% absolute return (equivalent to +64.3% annualized return-on-investment over the next 10 days) if the stock is assigned on the May 8th, 2026 options expiration date.

Citigroup Inc. (C) -- New Covered Calls Position
The simultaneous buy/write transaction was:
4/28/2026 Bought 300 Citigroup Inc. shares @ $128.73.
4/28/2026 Sold 3 Citigroup 5/8/2026 $125.00 Call options @ $5.31 per share.
Note: The Implied Volatility of the Call options was 36.5 when this position was transacted.
5/4/2026 Upcoming quarterly ex-dividend of $.60 per share.

Two possible overall performance results (including commissions) for this Citigroup Inc. Covered Calls position are as follows:
Covered Calls Cost Basis: $37,028.01
= ($128.73 - $5.31) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,590.99
= ($5.31 * 300 shares) - $2.01 commission
(b) Dividend Income (If options exercised early on May 1st, 2026, the last business day prior to the May 4th, 2026 ex-div date): +$0.00; or
(b) Dividend Income (If Citigroup stock assigned on the May 8th, 2026 options expiration date): +$180.00
= ($.60 dividend per share x 300 shares)

(c) Capital Appreciation (If Citi Call options assigned early on May 4th): -$1,119.00
+($125.00 strike price - $128.73 stock purchase price) * 300 shares; or
(c) Capital Appreciation (If shares assigned at $125.00 strike price at options expiration): -$1,119.00
+($125.00 - $128.73) * 300 shares

1. Total Net Profit (If options exercised early): +$471.99

= (+$1,590.99 options income +$0.00 dividend income - $1,119.00 capital appreciation); or

2. Total Net Profit (If Citi shares assigned at $125.00 at the May 8th, 2026 options expiration date): +$651.99

= (+$1,590.99 options income + $180.00 dividend income - $1,119.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised on business day prior to the May 4th, 2026 ex-dividend date]: +1.3%

= +$471.99/$37,028.01

Annualized Return-on-Investment (If option exercised early): +77.5%

= (+$471.99/$37,028.01) * (365/6 days); or

2. Absolute Return-on-Investment (If Citi shares assigned on the May 8th, 2026 options expiration date): +1.8%

= +$651.99/$37,028.01

Annualized Return-on-Investment (If Citi shares assigned at $125.00 at the May 8th, 2026 expiration): +64.3%

= (+$651.99/$37,028.01) * (365/10 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy.  As shown below, all nine criteria are achieved for this Citigroup Inc. Covered Calls position.

Established Covered Calls in Las Vegas Sands Corporation

Today, a net debit buy/write limit order was entered in Las Vegas Sands Corporation (ticker LVS) to buy 400 shares and simultaneously sell 4 Call options at the May 15th, 2026 monthly options expiration date and at the $51.00 strike price. The net debit limit price for my order was $50.32 and this order was executed when 400 shares were purchased at $53.46 and 4 May 15th, 2026 Call options were sold for $3.14 per share.  Therefore, a maximum potential time value profit from the Calls of $.68 per share = [$3.14 options premium - ($53.46 stock price - $51.00 strike price)] is available for this position.  

This position uses the Covered Calls Advisor's Dividend Capture Strategy since Las Vegas Sands has an upcoming quarterly ex-dividend of $.30 per share on May 5th which is prior to the May 15th options expiration date.  This is equivalent to an absolute annual dividend yield of 2.2% and an equivalent annualized dividend yield of 11.4% = [($.30/$53.46) x (365/18 days to expiration)].  This dividend is included in the detailed return-on-investment calculations below.  Either an early assignment on May 4th (the last trading day prior to the ex-dividend date) or on the May 15th options expiration date would be desirable given the potential annualized return on investments for either outcome.  Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on July 22nd, 2026 is more than two months after the May 15th options expiration date.  

Las Vegas Sands Corporation operates a capital-intensive “integrated resort” model, generating revenue primarily from casino gaming alongside hotels, conventions, retail, dining, and entertainment, with a strong focus on high-end and premium mass customers in Asia. The company is geographically concentrated in Macau (China) and Singapore (having sold its Las Vegas property in 2022).  Their flagship properties like Marina Bay Sands and their Macau portfolio (5 properties) drive the majority of cash flow and growth. Its competitive position is anchored by scarce gaming licenses and regulatory barriers—most notably a duopoly in Singapore and leading market share (~24%) in Macau—which create a durable moat and high margins. Relative to peers such as MGM Resorts International and Wynn Resorts, LVS emphasizes large-scale, high-return Asian assets that produce superior EBITDA margins and cash flow generation. However, its competitive strength is balanced by key risks, including heavy reliance on Asian markets, regulatory exposure, and high financial leverage inherent in its asset-heavy resort development strategy.

Las Vegas Sands passed all 18 criteria in my "Key Metrics for Comparing Companies" stock screener, which places it in the top 2% of the major U.S. companies considered in this stock screener.  The average target price of the 18 analysts following Las Vegas Sands is $69.26 which is +29.6% above today's stock purchase price.  The stock screener criteria and the actual numbers for LVS are shown in the filter breakdown in the table below:

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

•  +1.0% absolute return (equivalent to +61.0% annualized return-on-investment for the next 8 days) if the stock is assigned early (on the last business day prior to the May 5th ex-dividend date); or  
  

• +1.9% absolute return (equivalent to +39.2% annualized return-on-investment over the next 18 days) if the stock is assigned on the May 15th, 2026 options expiration date.

Las Vegas Sands Corporation (LVS) -- New Covered Calls Position

As shown on the table at the bottom of this post, all nine criteria of my Dividend Capture Strategy are met with this position.  Even if the Las Vegas Sands stock price declines somewhat during the next 18 days until the options expiration date, if the stock closes above the $51.00 strike price, then a very satisfactory annualized-return-on-investment of +39.2% will be achieved.  The probability that these Call options will expire in-the-money on the options expiration date was 72.3% when this position was established.   

The buy/write transaction was:

4/27/2026 Bought 400 Las Vegas Sands shares @ $53.46
4/27/2026 Sold 4 LVS 5/15/2026 $51.00 Call options @ $3.44 per share.
Note: Implied Volatility (IV) of the Call options was at 35.2 when this position was transacted which, as preferred, is above the current VIX of 18.5.   
5/5/2026 Upcoming quarterly ex-dividend of $.30 per share.

Two possible overall performance results (including commissions) for this Las Vegas Sands Corp. Covered Calls position are as follows:
Covered Calls Net Investment: $20,130.68
= ($53.46 - $3.14) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$1,253.32
= ($3.14 * 400 shares) - $2.68 commission
(b) Dividend Income (If LVS Call options exercised early on May 4th, 2026, the last business day prior to the May 5th ex-div date): +$0.00; or
(b) Dividend Income (If LVS stock assigned at the May 15th, 2026 options expiration): +$120.00
= ($.30 dividend per share x 400 shares)

(c) Capital Appreciation (If Las Vegas Sand's Call options assigned early on May 5th, 2026): -$984.00

+($51.00 strike price - $53.46 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If shares assigned at $51.00 strike price at the 5/15/2026 options expiration): -$984.00
+($51.00 - $53.46) * 400 shares

1. Total Net Profit [If option exercised early (business day prior to the May 5th ex-dividend date)]: +$269.32

= (+$1,253.32 options income + $0.00 dividend income - $984.00 capital appreciation); or

2. Total Net Profit (If LVS's shares assigned at $51.00 at the May 15th, 2026 expiration): +$389.32

= (+$1,253.32 options income + $120.00 dividend income - $984.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to the 5/5/2026 ex-dividend date]: +1.3%

= +$269.32/$20,130.68

Potential Annualized Return (If option exercised early): +61.0%

= (+$269.32/$20,130.68) * (365/8 days); or

2. Potential Absolute Return-on-Investment (If LVS's shares assigned on the May 15th options expiration date): +1.9%

= +$389.32/$20,130.68

Potential Annualized Return (If Las Vegas Sand's shares assigned at $51.00 at the 5/15/2026 options expiration date): +39.2%

= (+$389.32/$20,130.68) * (365/18 days)

Either outcome provides an attractive return-on-investment result for this Las Vegas Sands investment.  These returns will be achieved as long as the stock is above the $51.00 strike price at assignment.  However, if the stock declines below the strike price, the breakeven price of $50.02 ($53.46 - $3.14 - $.30) provides 6.4% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy.  As shown below, all nine criteria are achieved for this Las Vegas Sands Corporation Covered Calls position.

April 24th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with April 24th, 2026 options expirations and both positions (Dexcom Inc. and NVIDIA Corporation) closed with their stock prices in-the-money.  So, their Calls expired with no remaining time value 👍and the Covered Calls were closed out by the stocks being sold at their respective strike prices on their April 24th options expiration date. The return-on-investment details for each position is as follows:

1. Dexcom Inc. (DXCM) -- +1.7% absolute return-on-investment (equivalent to +57.2% annualized return-on-investment) for the 11 days of this investment.  This Dexcom Covered Calls position had a $61.00 strike price and it closed at $61.57 yesterday.  The original blog post showing the details of this position is here. 

2. NVIDIA Corporation (NVDA) -- +1.1% absolute return-on-investment (equivalent to +41.2% annualized return-on-investment) for the 10 days of this investment.  This NVIDIA position had a $185.00 strike price and it closed yesterday at $208.26.  The original blog post showing the details of this position is here. 

I welcome 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

April 17th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had one Covered Call position in NVIDIA Corporation which was in-the-money and therefore closed out by assignment at yesterday's option expiration date.  A summary of results for this position is as follows:

NVIDIA Corporation (NVDA) -- +5.5% absolute return (equivalent to +95.4% annualized return-on-investment) for the 21 days of this investment. This Covered Call position closed yesterday at $201.68 which was well above its $175.00 strike price, so the Call option expired and the 100 NVIDIA shares were sold at the $175.00 strike price.  The original blog post detailing this 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