March 20th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with March 20th, 2026 options expiration dates.  Two positions (Expand Energy Corporation 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 Gilead Sciences Inc. and Global Payments Inc. 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. Expand Energy Corporation (EXE) -- +1.9% absolute return (equivalent to +28.3% annualized return-on-investment) for the 24 days of this investment.  This Covered Calls position was assigned at the $95.00 strike price since the stock closed in-the-money at $107.32 per share.  The original blog post detailing this Covered Calls position is here. 

2. Global Payments Inc. (GPN) -- This Covered Calls position closed yesterday at $68.50 which was well below its $75.00 strike price, so the four Call options expired and 400 Global Payments 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 four Call options against the 400 Global Payments Inc. shares currently held or close out the position by selling these shares.

3. Gilead Sciences Inc. (GILD) -- This Covered Call position closed yesterday at $137.21 which was below its $140.00 strike price, so the one Call option expired and 100 Gilead 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 Gilead shares currently held or close out the position by selling these shares. 

4. NVIDIA Corporation (NVDA) -- +1.9% absolute return (equivalent to +64.5% annualized return-on-investment) for the 11 days of this investment.  This Covered Call position was assigned at the $170.00 strike price since the stock closed in-the-money at $172.70 per share.  The original 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

Established Covered Calls in NVIDIA Corporation

Early in this morning's trading session, I established a short-term Covered Calls position of 13 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $172.20 was executed by simultaneously purchasing two hundred shares at $177.13 and selling two April 2nd, 2026 Call options at $4.93 per share and at the $177.50 strike price. A slightly out-of-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $177.50 strike price) on the 4/2/2026 options expiration date was 47.9% when this transaction was executed. 

NVIDIA reported their Q4 earnings after the market close three weeks 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's result.  Two additional positives since their earnings report were the announcements at their GTC Conference and earlier this week an announcement of approval that shipments of their earlier generation H200 GPUs to approved companies in China can commence.  NVIDIA's stock has reacted negatively since then, but I agree with the numerous sell-side equity research firms that raised their NVIDIA post-earnings target prices.  The average target price of Wall Street analysts is now $264.57 (+49.4% above today's purchase price).  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $177.50 strike price) and therefore assigned on its April 2nd, 2026 options expiration date is +3.1% absolute return-on-investment (equivalent to +86.3% annualized return-on-investment for the next 13 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
3/20/2026 Bought 200 NVIDIA Corporation shares at $177.13.

3/20/2026 Sold 2 NVIDIA 4/2/2026 $177.50 Call options @ $4.93 per share.  The Implied Volatility of these Calls was 37.3 when this position was established, which is well above (as preferred) the VIX which was 25.0.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $34,441.34
= ($177.13 - $4.93) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$984.66
= ($4.93 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $177.50 strike price) on the 4/2/2026 options expiration date): +$74.00
+($177.50 strike price - $177.13 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $177.50 strike price on the 4/2/2026 options expiration date): +$1,058.66

= (+$984.66 options income + $0.00 dividend income + $74.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $177.50 strike price on the 4/2/2026 options expiration date): +3.1%

= (+$1,058.66/$34,441.34)

Potential Annualized Return-on-Investment: +86.3%
= (+$1,058.66/$34,441.34) * (365/13 days)

Covered Calls Position Established in Sea Limited ADR

A Covered Calls position in Sea Limited ADR (ticker SE) was established today when two hundred shares were purchased at $80.61 and two April 2nd, 2026 Call options were sold at $7.23 per share at the $75.00 strike price.  The buy/write net debit limit order at $73.38 was executed, so the time value was $1.62 per share [$7.23 Call options premium - ($80.61 stock purchase price - $75.00 strike price)].  As I prefer, Sea's next quarterly earnings report is not until May 12th, 2026 which is long after the April 2nd, 2026 options expiration date.  An in-the-money Covered Calls position was established with a 70.7% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Sea Ltd. is a large-cap ($46 billion market cap) company headquartered in Singapore.  It is a consumer internet company with three core businesses -- e-commerce, digital gaming, and fintech services.  The e-commerce business called Shopee is their largest business (by revenue) and is a mobile-centric, social-focused marketplace providing users a shopping environment with integrated payment, logistics, and seller services.  The digital gaming business is called Galena which offers mobile and personal computer online games and develops mobile games for the worldwide market. The fintech services (called SeaMoney) includes mobile wallet services, payment processing, credit, banking, and insurance tech.  Their operations are primarily in Indonesia, Taiwan, Thailand, Singapore, Malaysia, the Philippines, and Brazil.  

Sea appeared in my Key Metrics for Comparing Companies stock screener.  As shown below, it passed all the screener criteria including the fact that the average target price of the 21 analysts currently covering the company is +74.4% above today's stock purchase price.  This is the largest upside potential for all 30 companies in CFRA's Platinum Portfolio.  Also, although Sea's quarterly earnings reports have been erratic compared with analysts' estimates, I like that (unlike most companies) there is a close correlation between their quarterly GAAP and non-GAAP EPS results.  

  

As detailed below, a potential return-on-investment result is +2.2% absolute return-on-investment (equivalent to +57.3% annualized return-on-investment over the next 14 days) if the stock is assigned on the April 2nd, 2026 options expiration date.

Sea Limited ADR (SE) -- New Covered Calls Position
The simultaneous buy/write transaction today was as follows:
3/19/2026 Bought 200 Sea Ltd. shares @ $80.61
3/19/2026 Sold 2 SE 4/2/2026 $75.00 Call options @ $7.23 per share
Note: the Implied Volatility of the Calls was 62.3 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 25.5.

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if assigned on the options expiration date is as follows:
Covered Calls Cost Basis: $14,677.34
= ($80.61 - $7.23) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,444.66
= ($7.23 * 200 shares) - $1.34 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $75.00 strike price at options expiration): -$1,122.00
+($75.00 strike price - $80.61 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $75.00 strike price at the 4/2/2026 expiration): +$322.66

= (+$1,444.66 options income + $0.00 dividend income - $1,122.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $75.00 strike price on the April 2nd, 2026 options expiration date): +2.2%

= +$322.66/$14,677.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $75.00 strike price at the 4/2/2026 options expiration date): +57.3%

= (+$322.66/$14,677.34) * (365/14 days)

Covered Call Position Established in Microsoft Corporation

Early in this morning's trading session (at 9:35am ET), I purchase 100 Microsoft Corporation (ticker MSFT) shares at $395.625.  Seven minutes later at 9:42am, I sold 1 Microsoft April 2nd, 2026 Call option at the $185.00 strike price at $17.55 per share (when the stock price was $397.70) to establish a Covered Call position.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $6.925 per share [$17.55 Call option premium - ($395.625 stock purchase price - $385.00 strike price)].  The probability of assignment on the options expiration date was 70.1% when this Covered Call position was established which is a moderately conservative position established 2.8% in-the-money.  This position avoids the next quarterly earnings report on April 29th which is after the April 2nd options expiration date. 

Microsoft is currently top-rated (5 stars) by both Morningstar and CFRA.  LSEG Stock Reports Plus rates it at 9 in both Overall and Fundamentals (on a scale of 1 to 10).  The average analysts' target price is $595.55 which is +50.5% above today's stock purchase price.  Microsoft also appeared in my "Current and Future Earnings Growers" stock screener (detailed results shown in the table below); and I am also pleased that there are no red flags (i.e. "Warnings") in StockRover's Insight Panel for Microsoft Corporation.  

As detailed below, a potential outcome for this Microsoft Corporation investment is +1.8% absolute return-on-investment for the next 15 days (equivalent to +44.5% annualized-return-on-investment) if the stock closes above the $385.00 strike price on the April 2nd, 2026 options expiration date.

Microsoft Corporation (MSFT) -- New Covered Call Position

This Covered Call position transactions are as follows:
3/18/2026 Bought 100 shares of Microsoft stock @ $395.625 per share.  
3/18/2026 Sold 1 MSFT April 2nd, 2026 $385.00 Call option @ $17.55 per share.  The Implied Volatility of the Call was 29.8 when this transaction was executed.

A possible overall performance result (including commissions) if this position is assigned on its 4/2/2026 option expiration date is as follows:
Microsoft Covered Call Net Investment: $37,808.17
= ($395.625 - $17.55) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,754.33
= ($17.55 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Microsoft stock is above the $385.00 strike price at the April 2nd, 2026 option expiration date): -$1,062.50
= ($385.00 strike price - $395.625 stock purchase price) * 100 shares

Potential Total Net Profit (If assigned at expiration): +$691.83
= (+$1,754.33 option income + $0.00 dividend income - $1,062.50 capital appreciation)

Potential Absolute Return-on-Investment: +1.8%
= +$691.83/$37,808.17
Potential Equivalent Annualized-Return-on-Investment: +44.5%
= (+$691.83/$37,808.17) * (365/15 days)