Established Covered Calls Position in SK hynix Inc. ADR

A new Covered Calls position of two weeks duration was established this afternoon in SK hynix Inc. ADR (ticker SKHY).  My buy/write net debit limit order at $145.62 was executed and the time value was $4.38 per share [$13.48 Call options premium - ($159.10 stock purchase price - $150.00 strike price)].  An in-the-money strike price was established with the probability that SK hynix's stock will close in-the-money (i.e. above the $150.00 strike price) on the 9/11/2026 options expiration date was 64.7% when this transaction was executed.  This is the second SK hynix Covered Calls position in the Covered Calls Advisor Portfolio and serves as a continuation of the first SK hynix Covered Calls position, whose expiration date is tomorrow.  The first position is also at the $150.00 strike price, so it will likely be closed out (i.e. assigned) after tomorrow's market close.  As preferred, their next quarterly earnings report on October 27th is well after the September 11th options expiration date  

SK hynix (based in South Korea) is one of the three major HBM (High Bandwidth Memory) suppliers -- the other two being Samsung and Micron.  But SK hynix is the leader with about 58% of this market and is also the #1 HBM supplier to NVIDIA.    

As detailed below, a potential return-on-investment result if SK hynix Inc. ADR's share price is in-the-money (i.e. above the $150.00 strike price) and therefore assigned on its September 11th, 2026 options expiration date is +3.0% absolute return-on-investment (equivalent to +73.1% annualized return-on-investment for the next 15 days).

SK hynix Inc. ADR (SKHY) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
8/27/2026 Bought 200 SK hynix Inc. ADR shares at $159.10.

8/27/2026 Sold 2 SK hynix 9/11/2026 $150.00 Call options @ $13.48 per share.  The Implied Volatility of these Calls was 64.7 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) which was 14.7.

A possible overall performance result (including commissions) for this SK hynix Covered Calls position is as follows:

Covered Calls Net Investment: $29,125.34
= ($159.10 - $13.48) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,694.66
= ($13.48 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 SK hynix shares assigned (i.e. above the $150.00 strike price) on the 9/11/2026 options expiration date): -$1,820.00

+($150.00 strike price - $159.10 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 SK hynix shares assigned at the $150.00 strike price on the 9/11/2026 options expiration date): +$874.66

= (+$2,694.66 options income + $0.00 dividend income - $1,820.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 SK hynix shares assigned (i.e. sold) at the $150.00 strike price on the 9/11/2026 options expiration date): +3.0%

= (+$874.66/$29,125.34)

Potential Annualized Return-on-Investment (If 200 SK hynix shares assigned at the $150.00 strike price on the 9/11/2026 options expiration date): +73.1%

= (+$874.66/$29,125.34) * (365/15 days)

Established Two New Covered Call Positions in NVIDIA Corporation

Two new Covered Call positions were established in NVIDIA Corporation (ticker NVDA) and the details for both positions are shown below.  I almost always establish simultaneous buy/write Covered Call positions, but given my confidence in NVIDIA's earnings report, I decided to stagger the timing by first purchasing the stock and subsequently selling the Call option for both of these positions.  

1. NVIDIA Corporation (NVDA) -- New Covered Call Position

This position transactions were as follows:
8/26/2026 Bought 100 NVIDIA Corporation shares at $210.88.  These shares were purchased yesterday afternoon prior to the earnings release after the market closed.

8/27/2026 Sold 1 NVIDIA 9/11/2026 $215.00 Call option @ $11.75 per share when the stock price was trading at $223.90 early in today's trading session.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position if the stock closes above the $215.00 strike price on the 9/11 options expiration date is as follows:
Covered Call Net Investment: $19,913.67
= ($210.88 - $11.75) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,174.33
= ($11.75 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $215.00 strike price at expiration): +$412.00
+($215.00 strike price - $210.88 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 at the options expiration date): +$1,586.33
= (+$1,174.33 option income + $0.00 dividend income + $412.00 capital appreciation)

Potential Absolute Return-on-Investment: +8.0%
= +$1,586.33/$19,913.67
Potential Annualized Return-on-Investment: +181.7%
= (+$1,586.33/$19,913.67) * (365/16 days)

2. NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's Covered Call position transactions were as follows:
8/27/2026 Bought 100 NVIDIA Corporation shares at $222.88.

8/27/2026 Sold 1 NVIDIA 9/11/2026 $220.00 Call option @ $9.56 per share when the stock price was at $225.40. The Implied Volatility of the Call was 34.3 when this option was sold and the probability that the position will close in-the-money and therefore be assigned on the options expiration date was 62.6%.   

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,331.33
= ($222.88 - $9.56) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$955.33
= ($9.56 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $220.00 strike price at the 9/11/2026 options expiration date): -$288.00
+($220.00 strike price - $222.88 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $220.00 strike price at the options expiration date): +$667.33
= (+$955.33 option income + $0.00 dividend income - $288.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.1%
= +$667.33/$21,331.33
Potential Annualized Return-on-Investment: +76.1%
= (+$667.33/$21,331.33) * (365/15 days)

Covered Call Position Established in NVIDIA Corporation

A short-term in-the-money Covered Call position was established this morning in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $196.80 was executed when the stock price dropped to $210.71 per share and one hundred shares at that price and one September 4th, 2026 Call option was simultaneously sold at the $200.00 strike price at $13.91 per share, which provides a $3.20 per share = [$13.91 Call option premium received - ($210.71 stock purchase price - $200.00 option strike price)] time value profit potential. An in-the-money Covered Call position was established for this new position with the probability that NVIDIA's stock will close in-the-money on the 9/4/2026 options expiration date was 71.0% when this transaction was executed.  I am violating my own preference since NVIDIA's Q2 earnings report is after market close tomorrow (before the options expiration date), but I am limiting my exposure with a strike price 5% below the stock price and also only 100 NVIDIA shares .  

As detailed below, a potential return-on-investment result is +1.6% absolute return-on-investment (equivalent to +59.2% annualized return-on-investment for the next 10 days) if NVIDIA's share price is in-the-money (i.e. above the $200.00 strike price) and therefore assigned on its September 4th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
8/25/2026 Bought 100 NVIDIA Corporation shares at $210.71.

8/25/2026 Sold 1 NVIDIA 9/4/2026 $200.00 Call option @ $13.91 per share.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $19,680.67
= ($210.71 - $13.91) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,390.33
= ($13.91 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $200.00 strike price at expiration): -$1,071.00
+($200.00 strike price - $210.71 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $200.00 strike price at the options expiration date): +$319.33
= (+$1,390.33 option income + $0.00 dividend income - $1,071.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.6%
= +$319.33/$19,680.67
Potential Annualized Return-on-Investment: +59.2%
= (+$319.33/$19,680.67) * (365/10 days)

Closed Out Covered Call Position in AppLovin Inc.

Last Friday, the Covered Call position in AppLovin Inc. (ticker APP) closed out-of-the-money at $305.77 which was below its $310.00 strike price.  With AppLovin's stock price at $304.92 in this morning's trading session, I decided to close out the position by selling the 100 shares.

As detailed below, the return-on-investment results are: +1.3% absolute return (equivalent to +24.8% annualized return-on-investment) for the 19 days of this investment.

AppLovin Corporation (APP) -- Covered Call Position Closed Out

The simultaneous buy/write transaction was as follows:
8/6/2026 Bought 100 shares of AppLovin stock @ $335.02 per share.  
8/6/2026 Sold 1 AppLovin August 21st $310.00 Call option @ $34.00 per share.
Note: The Implied Volatility of the Call option was 70.2% when this transaction was executed which, as preferred, substantially exceeds the current 15.6 of the S&P 500 Volatility Index (i.e. VIX). 
8/21/2026 100 AppLovin shares closed below the $310.00 strike price so the Call option expired and 100 AppLovin shares remain in the Covered Calls Advisor Portfolio

8/25/2026 Closed out this Covered Call position by selling the 100 remaining APP shares at $304.92.

The overall performance result (including commissions) was as follows:
Covered Call Cost Basis: $30,102.67
= ($335.02 - $34.00) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$3,399.33
= ($34.00 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (100 shares of AppLovin stock sold at $304.92): -$3,010.00
= ($304.92 stock selling price - $335.02 stock purchase price) * 100 shares

Total Net Profit: +$389.33
= (+$3,399.33 option income + $0.00 dividend income - $3,010.00 capital appreciation)

Absolute Return-on-Investment: +1.3%
= +$389.33/$30,102.67
Equivalent Annualized Return-on-Investment: +24.8%
= (+$389.33/$30,102.67) * (365/19 days)