Covered Call Position Established in The Cigna Group

This afternoon a Covered Call position was established in The Cigna Group (ticker symbol CI) using my Dividend Capture Strategy (see post describing this strategy here).  One hundred Cigna shares were purchased at $287.06 and one March 13th, 2026 Call option was sold for $15.56 per share at the $275.00 strike price.  The buy/write net debit limit order at $271.50 was executed, so the potential time value profit is $3.50 per share [$15.56 Call option premium - ($287.06 stock purchase price - $275.00 strike price)].  There is an upcoming quarterly ex-dividend of $1.56 (annual dividend yield of 2.2%) on March 5th, so the potential return-on-investment results detailed below for this position includes this dividend income.    

As preferred by the Covered Calls Advisor, Cigna's next quarterly earnings report on May 27th, 2026 will be after the March 13th options expiration date.  Given the Covered Calls Advisor's current Overall Market Meter indicator of Neutral, an in-the-money Covered Call position was established with the probability the stock is in-the-money on the options expiration date was 72.3%. 

As detailed below, two potential return-on-investment results are: (1) +1.3% absolute return-on-investment (equivalent to +33.5% annualized return-on-investment over the next 14 days) if the stock is assigned on the day prior to the March 5th ex-dividend date; or (2) +1.9% absolute return-on-investment (equivalent to +30.9% annualized return-on-investment over the next 22 days) if the stock is assigned on the March 13th, 2026 options expiration date.

Cigna Corporation (CI) -- New Covered Call Position
The buy/write transaction today was as follows:
2/19/2026 Bought 100 Cigna Corp. shares @ $287.06
2/19/2026 Sold 1 Cigna 3/13/2026 $275.00 Call option @ $15.56 per share.
3/5/2026 Upcoming quarterly ex-dividend of $1.56 per share

Two potential overall performance results (including commissions) for this Cigna Covered Call position are as follows:
Covered Call Cost Basis: $27,150.67
= ($287.06 - $15.56) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,555.33
= ($15.56 * 100 shares) - $.67 commissions
(b) Dividend Income (If Cigna shares assigned on the day prior to the March 5th ex-dividend date): +$0.00
(b) Dividend Income (If Cigna shares assigned at the March 13th, 2026 options expiration date): +$156.00
= ($1.56 dividend per share x 100 shares)

(c) Capital Appreciation (If Cigna shares assigned on the day prior to the March 6th ex-dividend date): -$1,206.00

+($275.00 strike price - $287.06 stock purchase price) * 100 shares

(c) Capital Appreciation (If Cigna shares assigned at the $275.00 strike price at options expiration): -$1,206.00
+($275.00 - $287.06) * 100 shares

1. Total Net Profit (If Cigna shares assigned on the day prior to the March 5th ex-dividend date): +$349.33

= (+$1,555.33 option income + $0.00 dividend income - $1,206.00 capital appreciation)

2. Total Net Profit (If Cigna shares assigned at the March 13th, 2026 options expiration date): +$505.33

= (+$1,555.33 option income + $156.00 dividend income - $1,206.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If Cigna shares assigned on the day prior to the March 5th ex-dividend date) : +1.3%

= +$349.33/$27,150.67

Potential Annualized Return-on-Investment: +33.5%

= (+$349.33/$27,150.67) *(365/14 days)

2. Potential Absolute Return-on-Investment (If Cigna shares assigned at the March 13th, 2026 options expiration date): +1.9%

= +$505.33/$27,150.67

Potential Annualized Return-on-Investment: +30.9%

= (+$505.33/$27,150.67) *(365/22 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this Cigna Group position, all nine criteria are met.

Covered Call Established in Boeing Company

This afternoon, a 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 $234.24 and one March 6th, 2026 Call option was sold at $12.36 per share at the $225.00 strike price.  Therefore, a net debit price of $221.88 which is a time value of $3.12 per share [$12.36 Call option price - ($234.24 stock price - $225.00 strike price)].  This is a moderately in-the-money position since its probability of closing in-the-money on the 3/6/2026 options expiration date was 70.5% 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 March 6th, 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 to 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 +16.3% above today's $234.24 stock purchase price.  Significant upside 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 +34.1% annualized return-on-investment for the next 15 days) if the stock is in-the-money and therefore assigned on the March 6th, 2026 options expiration date.

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

The buy/write transaction was as follows:
2/19/2026 Bought 100 shares of Boeing Co. stock @ $234.24 per share.  
2/19/2026 Sold 1 Boeing March 6th, 2026 $225.00 Call option @ $12.36 per share.  The Implied Volatility of this Call option was 34.4 when this position was established.

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $22,188.67
= ($234.24 - $12.36) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,235.33
= ($12.36 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If BA stock is above the $225.00 strike price at the March 6th, 2026 expiration): -$924.00
= ($225.00 strike price - $234.24 stock purchase price) * 100 shares

Potential Total Net Profit: +$311.33
= (+$1,235.33 Call option income + $0.00 dividend income - $924.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.4%
= +$311.33/$22,188.67
Potential Equivalent Annualized Return-on-Investment: +34.1%
= (+$311.33/$22,188.67) * (365/15 days)

Established Covered Calls in Delta Air Lines Inc.

This morning, a buy/write limit order was entered in Delta Air Lines Inc. (ticker DAL) to buy 400 shares and simultaneously sell 4 Call options at the March 6th, 2026 weekly options expiration date and at the $65.00 strike price. The net debit limit price for my order was $64.08 and this order was executed with 400 shares purchased at $70.07 and 4 March 6th, 2026 Call options sold for $5.99 per share.  Therefore, a maximum potential time value profit of $.92 per share = [$5.99 options premium - ($70.07 stock price - $65.00 strike price)] is available for this position.  This in-the-money Covered Calls position has a probability of 75.8% of being in-the-money (i.e. above the $65.00 strike price) on the March 6th options expiration date.   

This position uses the Covered Calls Advisor's Dividend Capture Strategy (see here) since Delta has an upcoming quarterly ex-dividend of $.188 per share (a 1.1% annual dividend yield) on February 26th, 2026 which is prior to the March 6th options expiration date.  This dividend is included in the detailed return-on-investment calculations below.  Either an early assignment on the last trading day prior to the ex-dividend date or on the March 6th options expiration date would be desirable to the Covered Calls Advisor 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 April 8th, 2026 is after the March 6th, 2026 options expiration date.

As shown on the table at the bottom of this post, all nine criteria of the Dividend Capture Strategy are met with this position.  Even if the Delta Air Lines Inc. stock price declines somewhat during the next 17 days until the options expiration date, if the stock closes above the $65.00 strike price, then a satisfactory annualized-return-on-investment of +36.9% will be achieved.  

The average Target Price of the analysts covering Delta Air Lines is +17.2% above today's purchase price.  A primary reason for establishing this position was that Delta was highly ranked in my Stock Rover "Quality+Value+Growth" stock screener since all 21 criteria in that screener are currently achieved by Delta (see chart below): 

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

•  +1.4% absolute return (equivalent to +57.8% annualized return-on-investment for the next 9 days) if the stock is assigned early (on the last business day prior to the February 26th, 2026 ex-dividend date); or  
  

• +1.7% absolute return (equivalent to +36.9% annualized return-on-investment over the next 17 days) if the stock is assigned on the March 6th, 2026 options expiration date.

Delta Air Lines Inc. (DAL) -- New Covered Calls Position
The buy/write transaction was:
2/17/2026 Bought 400 Delta Air Lines Inc. shares @ $70.07.
2/17/2026 Sold 4 Delta 3/6/2026 $65.00 Call options @ $5.99 per share.  The Implied Volatility of these Calls was 44.5% when this buy/write transaction occurred, which as preferred is well above the current 20.8% for the S&P 500 Volatility Index (i.e. VIX).
2/26/2026 Upcoming quarterly ex-dividend of $.188 per share.

Two possible overall performance results (including commissions) for this Delta Air Lines Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $25,634.68
= ($70.07 - $5.99) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$2,393.32
= ($5.99 * 400 shares) - $2.68 commission
(b) Dividend Income (If Delta Air Lines Call options exercised early on Feb. 25, 2026, the last business day prior to the Feb. 26th ex-div date): +$0.00; or
(b) Dividend Income (If Delta stock assigned at the March 6th, 2026 options expiration date): +$75.20
= ($.188 dividend per share x 400 shares)

(c) Capital Appreciation (If Delta's Call options assigned early on Feb. 26th): -$2,028.00

+($65.00 strike price - $70.07 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If shares assigned at $65.00 strike price at the March 6th options expiration): -$2,028.00
+($65.00 - $70.07) * 400 shares

1. Total Net Profit [If option exercised early (business day prior to the February 26th, 2026 ex-dividend date)]: +$365.32

= (+$2,393.32 options income + $0.00 dividend income - $2,028.00 capital appreciation); or

2. Total Net Profit (If Delta's shares assigned at $65.00 at the March 6th, 2026 expiration): +$440.52

= (+$2,393.32 options income + $75.20 dividend income - $2,028.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to ex-dividend date]: +1.4%

= +$365.32/$25,634.68

Potential Annualized Return-on-Investment (If option exercised early): +57.8%

= (+$365.32/$25,634.68) * (365/9 days); or

2. Potential Absolute Return-on-Investment (If Delta's shares assigned on the March 6th options expiration date): +1.7%

= +$440.52/$25,634.68

Potential Annualized Return-on-Investment (If Delta's shares assigned at $65.00 at the March 6th, 2026 expiration): +36.9%

= (+$440.52/$25,634.68) * (365/17 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 Delta Air Lines Inc. Covered Calls position.

February 13th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had five Covered Calls positions with February 13th, 2026 options expiration dates.  Three positions (D.R. Horton Inc., Lowe's Companies Inc., and NVIDIA Corporation), closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  Two positions in KraneShares CSI China Internet ETF and Microsoft 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. D.R. Horton Inc. (AMZN) -- +2.3% absolute return (equivalent to +46.1% annualized return-on-investment) for the 18 days of this investment.  This Covered Calls position was assigned at the $145.00 strike price since the stock closed in-the-money at $167.78 per share.  The original blog post detailing this Covered Calls position is here. 

2. KraneShares CSI China Internet ETF (KWEB) -- This Covered Calls position closed yesterday at $32.79 which was below its $34.50 strike price, so the five Call options expired and 500 KWEB 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 Call options against the 500 KWEB shares currently held or close out the position by selling these shares. 

3. Lowe's Companies Inc. (LOW) -- +   1.2% absolute return (equivalent to +16.3% annualized return-on-investment) for the 28 days of this investment.  This Covered Call position was assigned at the $265.00 strike price since the stock closed in-the-money at $287.39 per share.  The most recent blog post detailing this Covered Call position is here.    

4. Microsoft Corporation (MSFT) -- This Covered Call position closed yesterday at $401.32 which was well below its $425.00 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. 

5. NVIDIA Corporation (NVDA) -- +2.3% absolute return (equivalent to +57.1% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $182.50 strike price since the stock closed slightly in-the-money at $182.81 per share.  The most recent blog post detailing this Covered Call position is here.    

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