Established Covered Calls in NVIDIA Corporation

Early in this morning's trading session, I established a Covered Calls position of 14 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $175.67 was executed by simultaneously purchasing two hundred shares at $180.02 and selling two March 13th, 2026 weekly Call options at $4.35 per share and at the $185.00 strike price. A moderately out-of-the-money (strike price above the stock purchase price) Covered Calls position was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $185.00 strike price) on the 3/13/2026 options expiration date was 37.6% when this transaction was executed. 

NVIDIA reported their Q4 earnings after the market close two days ago. They substantially beat analysts' estimates on all relevant metrics including both earnings and revenue (which at $68.1 billion was 72.4% above the comparable quarter last year). In addition, their next quarter guidance at $78 billion is 76.9% above last year.  Very surprisingly, their stock reacted very negatively yesterday.  But I agree with the numerous sell-side equity research firms that raised their NVIDIA post-earnings target prices to approximately +40% above the $180.02 price I paid today.  In short, I decided that the negative price reaction to earnings is unwarranted -- so this morning I established this new Covered Calls position. 

As detailed below, two potential return-on-investment results are: (1) +2.5% absolute return-on-investment (equivalent to +64.6% annualized return-on-investment for the next 14 days) if NVIDIA's share price is unchanged at the $180.02 stock purchase price on the March 13th, 2026 options expiration date; and  (2) +5.3% absolute return-on-investment (equivalent to +138.5% annualized return-on-investment for the next 14 days) if NVIDIA's share price is in-the-money (i.e. above the $185.00 strike price) and therefore assigned on its March 13th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's 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. 🤣

Two possible overall performance results (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$868.66
= ($4.35 * 200 shares) - $1.34 commission
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares close at the unchanged purchase price of $180.02 per share on the 3/13/2026 options expiration date): +$0.00
+($180.02 closing price at expiration - $180.02 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $185.00 strike price) on the 3/13/2026 options expiration date): +$996.00
+($185.00 strike price - $180.02 stock purchase price) * 200 shares

1. Total Net Profit Potential (If stock price closes at the unchanged purchase price of $180.02 per share on the 3/11/2026 options expiration date): +$870.66
= (+$868.66 option income + $2.00 dividend income + $0.00 capital appreciation)
2. Total Net Profit Potential (If 200 NVIDIA shares assigned at the $185.00 strike price on the 3/13/2026 options expiration date): +$1,866.66

= (+$868.66 option income + $2.00 dividend income + $996.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If 200 NVDA shares closing price is unchanged at the original purchase price of $180.02 per share on the 3/11 options expiration date): +2.5%
= +$870.66/$35,135.34
Potential Annualized Return-on-Investment (If 200 NVIDIA shares closing price is unchanged at the original $180.02 stock purchase price on the 3/11/2026 options expiration date): +64.6%
= (+$870.66/$35,135.34) * (365/14 days)

2. Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $185.00 strike price on the 3/11/2026 options expiration date): +5.3%
= (+$1,866.66/$35,135.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $185.00 strike price on the 3/11/2026 options expiration date): +138.5%
= (+$1,866.66/$35,135.34) * (365/14 days)

Established Covered Calls in Global Payments Inc.

This afternoon, a buy/write limit order was entered in Global Payments Inc. (ticker GPN) to buy 400 shares and simultaneously sell 4 Call options at the March 20th, 2026 options expiration date and at the $75.00 strike price. The net debit limit price for my order was $73.52 and this order was executed with 400 shares purchased at $78.63 and 4 March 20th, 2026 Call options sold for $5.11 per share.  Therefore, a maximum potential time value profit of $1.48 per share = [$5.11 options premium - ($78.63 stock price - $75.00 strike price)] is available for this position.  This in-the-money Covered Calls position has a probability of 68.0% of being in-the-money (i.e. above the $75.00 strike price) on the March 20th options expiration date.   

This position uses the Covered Calls Advisor's Dividend Capture Strategy (see here) since Global Payments has an upcoming quarterly ex-dividend of $.25 per share (a 1.3% annual dividend yield) on March 9th, 2026 which is prior to the March 20th options expiration date. Given that the overall stock market year-to-date has been relatively stagnant (although volatile from industry-to-industry), I am leaning toward positions that I'm bullish on but that also have intervening ex-dividend dates prior to the options expiration date.  For this Global Payments Covered Calls position, their 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 (March 9th) or on the March 20th 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 May 5th, 2026 is after the March 20th, 2026 options expiration date.

Global Payments Inc. is an American multinational financial technology company that provides payment processing technology and software solutions to merchants, financial institutions, and consumers worldwide. It helps businesses accept credit, debit, digital and contactless payments and offers integrated commerce services across in-store, online, and mobile channels, supporting tens of billions of transactions annually across more than 175 countries. The company is headquartered in Atlanta, Georgia, is a Fortune 500® and S&P 500® member and employs roughly 27,000 people globally. In recent years it has pursued strategic acquisitions (notably recently completing its purchase of Worldpay) and divestitures to sharpen its focus as a pure-play commerce solutions provider with expanded scale and capabilities. Its technology portfolio includes point-of-sale systems, APIs, analytics and software that enable seamless payments and business operations across a wide range of industries.  

As shown on the table at the bottom of this post, eight of the nine criteria of the Dividend Capture Strategy are met with this position.  Even if the Global Payments stock price declines somewhat during the next 24 days until the options expiration date, if the stock closes above the $75.00 strike price, then a satisfactory annualized-return-on-investment of +35.9% will be achieved.  

The average Target Price of the analysts covering Global Payments is +30.0% above today's purchase price.  Global Payments is Buy rated by LSEG Stock Reports Plus and CFRA and it is top-rated as a 5-star stock by Morningstar.  In addition, Global Payments was highly ranked in my Stock Rover "Free-Cash-Flow Growers" stock screener since it passed all criteria in that screener (see chart below): 

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

•  +2.0% absolute return (equivalent to +56.8% annualized return-on-investment for the next 13 days) if the stock is assigned early (on the last business day prior to the March 9th, 2026 ex-dividend date); or  
  

• +2.4% absolute return (equivalent to +35.9% annualized return-on-investment over the next 24 days) if the stock is assigned on the March 20th, 2026 options expiration date.

Global Payments Inc. (GPN) -- New Covered Calls Position

The buy/write transaction was:
2/24/2026 Bought 400 Global Payments Inc. shares @ $78.63.
2/24/2026 Sold 4 GPN 3/20/2026 $75.00 Call options @ $5.11 per share.  The Implied Volatility of these Calls was 37.2% when this buy/write transaction occurred, which as preferred is well above the current 19.6% for the S&P 500 Volatility Index (i.e. VIX).
3/9/2026 Upcoming quarterly ex-dividend of $.25 per share.

Two possible overall performance results (including commissions) for this Global Payments Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $29,410.68
= ($78.63 - $5.11) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$2,046.68
= ($5.11 * 400 shares) - $2.68 commission
(b) Dividend Income (If Global Payments Call options exercised early on March 6th, 2026, the last trading day prior to the March 9th ex-div date): +$0.00; or
(b) Dividend Income (If GPN's stock is assigned at the March 20th, 2026 options expiration date): +$100.00
= ($.25 dividend per share x 400 shares)

(c) Capital Appreciation (If GPN's Call options assigned early on March 9th): -$1,452.00

+($75.00 strike price - $78.63 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If shares assigned at $75.00 strike price at the March 20th options expiration): -$1,452.00
+($75.00 - $78.63) * 400 shares

1. Total Net Profit [If option exercised early (last business day prior to the March 9th, 2026 ex-dividend date)]: +$594.68

= (+$2,046.68 options income + $0.00 dividend income - $1,452.00 capital appreciation); or

2. Total Net Profit (If GPN's shares assigned at $75.00 at the March 20th, 2026 expiration): +$694.68

= (+$2,046.68 options income + $100.00 dividend income - $1,452.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on the last business day prior to the March 9th, 2026 ex-dividend date]: +2.0%

= +$594.68/$29,410.68

Potential Annualized Return-on-Investment (If option exercised early): +56.8%

= (+$594.68/$29,410.68) * (365/13 days); or

2. Potential Absolute Return-on-Investment (If Global Payment's shares assigned on the March 20th options expiration date): +2.4%

= +$694.68/$29,410.68

Potential Annualized Return-on-Investment (If GPN's shares assigned at $75.00 at the March 20th, 2026 options expiration date): +35.9%

= (+$694.68/$29,410.68) * (365/24 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, eight of the nine criteria are achieved for this Global Payments Inc. Covered Calls position.

Established Covered Calls in Expand Energy Corporation

This afternoon, a Covered Calls position at my net debit limit order price of $93.82 was executed in Expand Energy Corporation (ticker symbol EXE) when 200 shares were purchased at $101.87 and 2 March 20th, 2026 Call options were sold at $8.05 per share at the $95.00 strike price.  The buy/write net debit limit order at $93.82 had a potential time value profit of $1.18 per share [$8.05 Call options premium - ($101.87 stock purchase price - $95.00 strike price)].  

There is also an upcoming quarterly ex-dividend of $.575 per share on March 5th (at a current annual dividend yield of 2.3%), so two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment because the ex-dividend on March 5th is prior to the March 20th, 2026 options expiration date.  A deep in-the-money Covered Calls position was established with the probability of the stock closing in-the-money (and therefore being assigned) on the 3/20/2026 options expiration date was 80.0%.

Expand Energy Corporation is a major U.S. energy company formed by the 2024 merger of Chesapeake Energy Corporation and Southwestern Energy Company, creating the largest independent natural gas producer in North America.  It holds interests in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania; the Marcellus and Utica Shales in Ohio and West Virginia; and the Haynesville and Bossier Shales in Louisiana and Texas.  Expand Energy aims to deliver affordable, reliable, and lower-carbon energy while integrating sustainability and operational discipline across its business. It also targets significant cost synergies and robust financial performance, including strong production growth and dividends to shareholders. In recent developments, the company is relocating its corporate headquarters to the Houston area to align closer with global natural gas markets.

As preferred, there is no quarterly earnings report prior to the options expiration date.  LSEG Stock Reports Plus has perfect "10" ratings for both their Average Score and their Optimized Score.  The average analysts' target price is $132.35 which is +29.9% above today's stock purchase price. 

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

•  +1.3% absolute return (equivalent to +50.7% annualized return-on-investment for the next 9 days) if the stock is assigned early (on the last business day prior to the March 5th, 2026 ex-dividend date); OR 

• +1.9% absolute return (equivalent to +28.3% annualized return-on-investment over the next 24 days) if the stock is assigned on the March 20th, 2026 options expiration date.

Expand Energy Corporation (EXE) -- New Covered Calls Position

The buy/write transaction was:
2/24/2026 Bought 200 Expand Energy Corp. shares @ $101.87.
2/24/2026 Sold 2 Expand Energy 3/20/2026 $95.00 Call options @ $8.05.
Note: the Implied Volatility of the Call options was 31.8% when this buy/write transaction was executed.
3/5/2026 Upcoming quarterly ex-dividend of $.575 per share.

Two possible overall performance results (including commissions) for this Expand Energy Corporation Covered Calls position are as follows:
Covered Calls Cost Basis: $18,765.34
= ($101.87 - $8.05) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,608.66
= ($8.05 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on March 4th, the last business day prior to the March 5th, 2026 ex-dividend date): +$0.00; or
(b) Dividend Income (If Expand Energy's stock is assigned at the March 20th, 2026 options expiration date): +$115.00 = $.575 dividend per share x 200 shares

(c) Capital Appreciation (If EXE's Call options assigned early on March 4th): -$1,374.00

+($95.00 strike price - $101.87 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at the $95.00 strike price at the 3/20/2026 options expiration): -$1,374.00
+($95.00 - $101.87) * 200 shares

1. Total Net Profit [If option exercised early on the last business day prior to the March 5th ex-dividend date)]: +$234.66

= (+$1,608.66 options income + $0.00 dividend income - $1,374.00 capital appreciation); or

2. Total Net Profit (If Expand Energy Corp. shares assigned at $95.00 strike price at the March 20th, 2026 options expiration date): +$349.66

= (+$1,608.66 + $115.00 - $1,374.00)

1. Potential Absolute Return-on-Investment (If option exercised early on 3/5/2026): +1.3%

= +$234.66/$18,765.34

Potential Annualized Return-on-Investment: +50.7%

= (+$234.66/$18,765.34) * (365/9 days); or

2. Potential Absolute Return-on-Investment (If Expand Energy's shares assigned at $95.00 at the March 20th, 2026 options expiration): +1.9%

= +$349.66/$18,765.34

Potential Annualized Return-on-Investment (If Expand Energy's shares assigned at the March 20th, 2026 options expiration date): +28.3%

= (+$349.66/$18,765.34) * (365/24 days)

Closed Covered Call Position in Microsoft Corporation

On the February 13th, 2026 options expiration date, the Covered Call position in Microsoft Corporation (ticker MSFT) closed out-of-the-money, so its Call option expired and the 100 shares remained in the Covered Calls Advisor Portfolio. Early in today's trading session I closed out this position at a net loss of $2,053.67 by selling the 100 shares of Microsoft at $393.46.  Along with other companies in the software industry, Microsoft has continued a steady stock price decline during the past 4 months. The transactions history for this position and the associated return-on-investment results are detailed below.

Microsoft Corporation (MSFT) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
1/29/2026 Bought 100 shares of Microsoft stock @ $427.80 per share.  
1/29/2026 Sold 1 MSFT February 13th, 2026 $425.00 Call option @ $12.90 per share.  The Implied Volatility of the Call was 33.2 when this transaction was executed.

2/13/2026 The Call option expired out-of-the-money and 100 Microsoft shares remain in the Covered Calls Advisor Portfolio.
2/19/2026 Ex-dividend income at $.91 per share.

2/23/2026 Closed out this Covered Call position by selling the 100 Microsoft shares at $393.46.

The overall performance result (including commissions) for this position is as follows:
Microsoft Covered Call Net Investment: $41,490.67
= ($427.80 - $12.90) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,289.33
= ($12.90 * 100 shares) - $.67 commission
(b) Dividend Income: +$91.00 = $.91 per share x 100 MSFT shares
(c) Capital Appreciation (Microsoft stock sold at $393.46): -$3,434.00
= ($393.46 - $427.80) * 100 shares

Total Net Loss: -$2,053.67
= (+$1,289.33 option income + $91.00 dividend income - $3,434.00 capital appreciation)

Absolute Return-on-Investment: -4.9%
= -$2,053.67/$41,490.67

Equivalent Annualized-Return-on-Investment: -72.3%
= (-$2,053.67/$41,490.67) * (365/25 days)