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 detailed below, two potential return-on-investment results are:
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 shares assigned at $65.00 strike price at the March 6th options expiration): -$2,028.00
+($65.00 - $70.07) * 400 shares
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.
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.
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.
