Established Covered Call in NVIDIA Corporation

Early in this morning's trading session, I established a Covered Call position of 21 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $165.89 was executed by simultaneously purchasing one hundred shares at $170.25 and selling one April 17th, 2026 Call option at $4.36 per share and at the $175.00 strike price. A moderately out-of-the-money (strike price above the stock purchase price) Covered Call position was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $175.00 strike price) on the 4/17/2026 options expiration date was 37.8% when this transaction was executed. This is a continuation of my practice of establishing Covered Calls positions in NVIDIA for each weekly options expiration date.

As detailed below, two potential return-on-investment results are: (1) +2.6% absolute return-on-investment (equivalent to +45.6% annualized return-on-investment for the next 21 days) if NVIDIA's share price is unchanged at the $170.25 stock purchase price on the April 17th, 2026 options expiration date; and  (2) +5.5% absolute return-on-investment (equivalent to +95.4% annualized return-on-investment for the next 21 days) if NVIDIA's share price is in-the-money (i.e. above the $175.00 strike price) and therefore assigned on its April 17th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
3/27/2026 Bought 100 NVIDIA Corporation shares at $170.25.

3/27/2026 Sold 1 NVIDIA 4/17/2026 $175.00 Call option @ $4.36 per share.  The Implied Volatility of this Call was 37.8 when this position was established  

Two possible overall performance results (including commissions) for this NVIDIA Corporation Covered Call position are as follows:
Covered Call Net Investment: $16,589.67
= ($170.25 - $4.36) * 100 shares + $.67 commission

Net Profit:
(a) Options Income: +$435.33
= ($4.36 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares close at the unchanged purchase price of $170.25 per share on the 4/17/2026 options expiration date): +$0.00
+($170.25 closing price at expiration - $170.25 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $175.00 strike price) on the 4/17/2026 options expiration date): +$475.00
+($175.00 strike price - $170.25 stock purchase price) * 100 shares

1. Total Net Profit Potential (If stock price closes at the unchanged purchase price of $170.25 per share on the 4/17/2026 options expiration date): +435.33
= (+$435.33 option income + $0.00 dividend income + $0.00 capital appreciation)
2. Total Net Profit Potential (If 100 NVIDIA shares assigned at the $175.00 strike price on the 4/17/2026 options expiration date): +$910.33

= (+$435.33 option income + $0.00 dividend income + $475.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If 100 NVDA shares closing price is unchanged at the original purchase price of $170.25 per share on the 4/17/2026 options expiration date): +2.6%
= +$435.33/$16,589.67
Potential Annualized Return-on-Investment (If 100 NVIDIA shares closing price is unchanged at the original $170.25 stock purchase price on the 4/17/2026 options expiration date): +45.6%
= (+$435.33/$16,589.67) * (365/21 days)

2. Potential Absolute Return-on-Investment (If 100 NVIDIA shares are in-the-money and therefore assigned (i.e. sold) at the $175.00 strike price on the 4/17/2026 options expiration date): +5.5%
= (+$910.33/$16,589.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $175.00 strike price on the 4/17/2026 options expiration date): +95.4%
= (+$910.33/$16,589.67) * (365/21 days)

Rolled Out Covered Calls Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in NVIDIA Corporation (ticker NVDA) with 200 shares with an options expiration date this Friday.  The current position had a strike price of $185.00 and this morning when the stock was at $178.76, I decided to roll the Covered Calls down-and-out to the April 10th, 2026 $175.00 strike price.  The diagonal spread transaction was buying-to-close the two 3/27/2026 $185.00 Calls at $.24 per share and simultaneously selling-to-open the two 4/10/2026 $175.00 Calls at $7.65 per share for a net credit of $7.41 per share (i.e. $7.65 - $.24).  As preferred, the next NVIDIA quarterly earnings report is not until May 20th, which is after the April 10th, 2026 options expiration date. 

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the April 10th, 2026 options expiration date is +6.7% absolute return-on-investment over 42 days (equivalent to +58.2% annualized-return-on-investment) if the stock closes above the $175.00 strike price on the 4/10/2026 options expiration date. The details showing this potential return-on-investment result are as follows:

NVIDIA Corporation (NVDA) -- Continuation of Covered Calls Position

The original buy/write net limit order transaction was as follows:
2/27/2026 Bought 200 NVIDIA Corporation shares at $180.02.

2/27/2026 Sold 2 NVIDIA 3/13/2026 $185.00 Call options @ $4.35 per share.  The Implied Volatility of these Calls was 44.8 when this position was established, well above (as preferred) the VIX which was at 20.7.  
3/11/2026 Ex-dividend of $.01 per share.  This miniscule dividend amount for the largest market cap company is ludicrous. 🤣

3/13/2026 NVIDIA Corporation stock closed out-of-the-money at $180.25 (i.e. below the $185.00 strike price), so the Call options expired and the 200 NVIDIA shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 2 March 27th, 2026 $185.00 Call options at $5.20 per share when the stock price was trading at $184.09.  The Implied Volatility of these Calls was 42.6% when this transaction was made.

3/25/2026 Continued this NVDA Covered Calls position by a simultaneous diagonal spread transaction of rolling down-and-out from the 3/27/2026 $185.00s to the 4/10/2026 $175.00s at a net credit of $7.41 per share.

A possible overall performance result (including commissions) if this NVIDIA Corporation Covered Calls position is in-the-money on its 4/10/2026 expiration date is as follows:
Covered Calls Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$3,356.64
= ($4.35 + $5.05 - $.24 + $7.65) x 200 shares) - $5.36 commissions
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $175.00 strike price) on the 4/10/2026 options expiration date): -$1,004.00
+($175.00 strike price - $180.02 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $175.00 strike price on the 4/10/2026 options expiration date): +$2,354.64

= (+$3,356.64 options income + $2.00 dividend income - $1,004.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $175.00 strike price on the 4/10/2026 options expiration date): +6.7%

= (+$2,354.64/$35,135.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $175.00 strike price on the 4/10/2026 options expiration date): +58.2%

= (+$2,354.64/$35,135.34) * (365/42 days)

Closed Out Covered Call Position in Gilead Sciences Inc.

Last Friday, the Covered Call position in Gilead Sciences Inc. (ticker GILD) closed out-of-the-money at $137.21 which was below its $140.00 strike price.  When Gilead's stock price advanced to $139.42 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: +1.2% absolute return (equivalent to +20.5% annualized return-on-investment) for the 22 days of this investment.

Gilead Sciences Inc. (GILD) -- Closed Out this Covered Call Position
The buy/write transaction was:
3/3/2026 Bought 100 Gilead Sciences Inc. shares @ $146.39
3/3/2026 Sold 1 Gilead 3/20/2026 $140.00 Call option @ $7.87 per share.  The Implied Volatility of the Call was 31.6 when this transaction occurred which, as I prefer, is above the current S&P 500 Volatility Index (i.e. VIX) of 24.2.
3/13/2026 Upcoming quarterly ex-dividend of $.82 per share
3/20/2026 One GILD Call option closed out-of-the-money, so the Call option expired and 100 Gilead shares remained in the Covered Calls Advisor Portfolio.
3/25/2026 Closed out this Gilead Sciences Covered Call position by selling the 100 shares at $139.42 per share.

The overall performance results (including commissions) for this Gilead Sciences Covered Call position are as follows:
Covered Call Net Investment: $13,852.67
= ($146.39 - $7.87) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$786.33
= ($7.87 * 100 shares) - $.67 commission
(b) Dividend Income: +$82.00
= ($.82 dividend per share x 100 shares)
(c) Capital Appreciation (100 Gilead shares sold at $139.42 per share): -$697.00 

= +($139.42 stock selling price - $146.39 original stock purchase price) * 100 shares

Total Net Profit: +$171.33

= (+$786.33 option income +$82.00 dividend income - $697.00 capital appreciation)

Absolute Return-on-Investment: +1.2%

= +$171.33/$13,852.67

Equivalent Annualized Return-on-Investment: +20.5%

= (+$171.33/$13,852.67) * (365/22 days)

Covered Call Established in Boeing Company

This morning, a short-term Covered Call position was established in Boeing Company (ticker symbol BA) when the Covered Calls Advisor's buy/write limit order was executed -- 100 shares were purchased at $194.83 and one April 2nd, 2026 Call option was sold at $9.95 per share at the $187.50 strike price.  Therefore, a net debit price of $184.88 which has a time value of $2.62 per share [$9.95 Call option price - ($194.83 stock price - $187.50 strike price)].  This is a moderately in-the-money position since its probability of closing in-the-money on the 4/2/2026 options expiration date was 68.9% when this position was established.  Also, as I prefer, there is no intervening quarterly earnings report since Boeing's next quarterly earnings report on April 22nd, 2026 is after this position's April 2nd, 2026 options expiration date.

  

Boeing remains one of the world's duopoly companies (along with Airbus) in the commercial airline industry and is also a top 5 U.S. Defense contractor.  The company has struggled greatly in recent years from a series of aircraft groundings and mismanagement which included 6 consecutive years of negative earnings per share.  But under the new and capable leadership of CEO Kelly Ortberg for the past one and half years, Boeing is now inflecting back toward profitability.    

Key Bullish Catalysts are: (1) Production Ramp-Up: Following the FAA's lifting of production caps in late 2025, Boeing is ramping the 737 MAX toward a target of 47 jets per month by summer 2026. Additionally, 787 Dreamliner production is slated to reach 10 per month during 2026.  (2) Financial Recovery: Analysts project 2026 as the first year of sustainably positive free cash flow (estimated in the low-single-digit billions) since the MAX crisis. Revenue is expected to reach approximately $96 billion with potential earnings of $2.34 to $3.00 per share. (3) Massive Backlog: Boeing holds a total backlog of over $636 billion, including firm orders for more than 5,900 commercial airplanes. In January 2026, Boeing outperformed Airbus in both deliveries (46) and net new orders (103). (4) Strategic Integration: The late-2025 acquisition of Spirit AeroSystems allows Boeing to bring critical fuselage manufacturing back in-house, aimed at ensuring tighter quality control and reducing supply chain friction. (5) Defense Growth: A projected increase in U.S. defense spending (potentially to $1.5 trillion) is expected to benefit Boeing’s Defense, Space & Security unit, which saw revenue rise to $6.9 billion in Q3 2025.

Boeing is included in Bank of America's US1 List for 2026.  The average target price of Wall Street analysts covering Boeing is +40.2% above today's $194.83 stock purchase price.  Significant stock price upside potential also depends on the successful certification of the 737 MAX 7 and MAX 10 variants in 2026, as well as flight test progress for the 777X. 

As detailed below, a potential return-on-investment result is +1.4% absolute return (equivalent to +57.3% annualized return-on-investment for the next 9 days) if the stock is in-the-money and therefore assigned on the April 2nd, 2026 options expiration date.

Boeing Co. (BA) -- New Covered Call Position

The buy/write transaction was as follows:
3/24/2026 Bought 100 shares of Boeing Co. stock @ $194.83 per share.  
3/24/2026 Sold 1 Boeing April 2nd, 2026 $187.50 Call option @ $9.95 per share.  The Implied Volatility of this Call option was 44.7 when this position was established.  As preferred, this IV is greater than that of the S&P 500 VIX which is currently at 27.8.

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $18,488.67
= ($194.83 - $9.95) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$994.33
= ($9.95 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If BA stock is above the $187.50 strike price at the April 2nd, 2026 options expiration date): -$733.00
= ($187.50 strike price - $194.83 stock purchase price) * 100 shares

Potential Total Net Profit: +$261.33
= (+$994.33 Call option income + $0.00 dividend income - $733.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.4%
= +$261.33/$18,488.67
Potential Equivalent Annualized Return-on-Investment: +57.3%
= (+$261.33/$18,488.67) * (365/9 days)