Covered Call Position Established in Alphabet Inc.

Late this morning a new short-term Covered Call net debit buy/write limit order was established in Alphabet Inc. (ticker GOOGL) for the July 31st, 2026 expiration and at the $305.00 strike price.  The stock price declined by over 7% this morning after yesterday afternoon's quarterly earnings results.  Investors reacted negatively to the increased capex plan for this year and the negative free cash flow for this quarter. The order was placed at a $302.34 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $2.66 per share [$15.30 Call option premium - ($317.64 stock purchase price - $305.00 strike price)].  The probability that this position will be in-the-money and therefore assigned on its options expiration date was 76.1% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 8 days (equivalent to a +40.0% annualized return-on-investment).  

Alphabet Inc. (GOOGL) -- New Covered Calls Position

The simultaneous buy/write transaction was as follows:
7/23/2026 Bought 100 shares of Alphabet Inc. stock @ $317.64 per share.  
7/23/2026 Sold 1 Alphabet Inc. July 31st $305.00 Call option @ $15.30 per share.
Note: The Implied Volatility of the Call options was 37.4 when this transaction was executed which, as I prefer, is well above the current 19.0 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $30,234.67
= ($317.64 - $15.30) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,529.33
= ($15.30 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $305.00 strike price at the 7/31/2026 options expiration date): -$1,264.00
= ($305.00 strike price - $317.64 stock purchase price) * 100 shares

Total Net Profit Potential: +$265.33
= (+$1,529.33 option income +$0.00 dividend income - $1,264.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$265.33/$30,234.67
Potential Equivalent Annualized Return-on-Investment: +40.0%
= (+$265.33/$30,234.67) * (365/8 days)

Established Covered Calls in IAMGOLD Corporation

A Covered Calls position of 32 days duration was established yesterday in IAMGOLD Corporation (ticker IAG).  My buy/write net debit limit order at $13.00 was executed and the time value was $1.00 per share [$1.10 Call options premium - ($14.10 stock purchase price - $14.00 strike price)].  An in-the-money strike price was established with the probability that IAMGOLD's stock will close in-the-money (i.e. above the $14.00 strike price) on the 8/21/2026 options expiration date was 48.4% when this transaction was executed.  

IAMGOLD Corporation (NYSE: IAG, TSX: IMG) is a Canada-based intermediate gold producer with mines in Canada (Côté Gold, Westwood) and Burkina Faso (Essakane), plus exploration projects like Nelligan in Quebec. Its flagship Côté Gold, run in a 70/30 partnership with Sumitomo Metal Mining, is among Canada's largest producing gold mines and drives growth beyond typical mid-tier peers. Geographic diversification spreads jurisdictional risk while strong Q1 2026 results (~$1.03B revenue, $525M free cash flow) reflect high leverage to gold prices. Competitively, low all-in sustaining costs, disciplined capital allocation, and shareholder returns support its position, though West African exposure and development execution risk remain factors.

IAMGOLD has an intervening quarterly earnings report on August 6th but given the associated very high Implied Volatility of 62.2% as well as the likelihood of a strong report given that spot gold is now 20% higher than at this time last year and IAMGOLD's positive production growth prospects, I am confident in this investment.  Its stock passed all criteria on three of my stock screeners (Acquirers Multiple, Energy and Materials Sectors, and Quality+Value+Growth).  Also, the 9 analysts now following IAMGOLD have an average 1-year target price of $26.13 (+85.3% above the stock purchase price) and LSEG Stock Reports Plus rates it as a 9 for both its Average Score and Optimized Score (on a scale of 1 to 10).   

As detailed below, a potential return-on-investment result if IAMGOLD's share price is in-the-money (i.e. above the $14.00 strike price) and therefore assigned on its August 21st, 2026 options expiration date is +7.6% absolute return-on-investment (equivalent to +87.1% annualized return-on-investment for the next 32 days).

IAMGOLD Corporation (IAG) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/20/2026 Bought 600 IAMGOLD Corporation shares at $14.10.

7/20/2026 Sold 6 IAMGOLD 8/21/2026 $14.00 monthly Call options @ $1.10 per share.  The Implied Volatility of these Calls was 62.2% when this position was established.  

A possible overall performance result (including commissions) for this IAMGOLD Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $7,804.02
= ($14.10 - $1.10) * 600 shares + $4.02 commission

Net Profit:
(a) Options Income: +$655.98
= ($1.10 * 600 shares) - $4.02 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 600 IAMGOLD shares assigned (i.e. above the $14.00 strike price) on the 8/21/2026 options expiration date): -$60.00
+($14.00 strike price - $14.10 stock purchase price) * 600 shares

Total Net Profit Potential (If 600 IAG shares assigned at the $14.00 strike price on the 8/21/2026 options expiration date): +$595.98

= (+$655.98 options income + $0.00 dividend income - $60.00 capital appreciation)

Potential Absolute Return-on-Investment (If 600 IAMGOLD shares assigned (i.e. sold) at the $14.00 strike price on the 8/21/2026 options expiration date): +7.6%

= (+$595.98/$7,804.02)

Potential Annualized Return-on-Investment (If 600 IAMGOLD shares assigned at the $14.00 strike price on the 8/21/2026 options expiration date): +87.1%
= (+$595.98/$7,804.02) * (365/32 days)

July 17th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had one Covered Call position with a July 17th, 2026 options expiration date.  The position in NVIDIA Corporation closed in-the-money at $202.81 so the Call option expired and the 200 shares were called away (i.e. sold) at the $187.50 strike price.  A summary of results for this position is as follows:

NVIDIA Corporation (NVDA) -- +1.6% absolute return (equivalent to +38.9% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $187.50 strike price since the stock closed in-the-money at $202.81 per share.  The original blog post detailing this Covered Call position is here. 

Email me at the address shown below with any questions or comments on anything related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls in NVIDIA Corporation

A short-term Covered Calls position of 8 days duration was established today in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $199.36 was executed and the time value was $3.14 per share [$8.25 Call options premium - ($207.61 stock purchase price - $202.50 strike price)].  An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $202.50 strike price) on the 7/24/2026 options expiration date was 64.5% when this transaction was executed.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $202.50 strike price) and therefore assigned on its July 24th, 2026 options expiration date is +1.6% absolute return-on-investment (equivalent to +71.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/16/2026 Bought 200 NVIDIA Corporation shares at $207.61.

7/16/2026 Sold 2 NVIDIA 7/24/2026 $202.50 Call options @ $8.25 per share.  The Implied Volatility of these Calls was 42.5 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 16.3.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $39,873.34
= ($207.61 - $8.25) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,648.66
= ($8.25 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $202.50 strike price) on the 7/24/2026 options expiration date): -$1,022.00
+($202.50 strike price - $207.61 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $202.50 strike price on the 7/24/2026 options expiration date): +$626.66

= (+$1,648.66 options income + $0.00 dividend income - $1,022.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $202.50 strike price on the 7/24/2026 options expiration date): +1.6%

= (+$626.66/$39,873.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +71.7%
= (+$626.66/$39,873.34) * (365/8 days)