Established Covered Call in Coinbase Global Inc.

This afternoon I established a short-term Covered Call position in Coinbase Global Inc. (ticker COIN).  Coinbase is the leading cryptocurrency exchange platform in the U.S. for both retail and institutional clients.  My net buy/write limit order at $308.32 was executed by simultaneously purchasing one hundred shares at $331.45 and selling one October 3rd, 2025 weekly Call option at the $315.00 strike price at $23.13 per share, which provides a $6.68 per share = [$23.13 Call option premium received - ($331.45 stock purchase price - $315.00 option strike price)] maximum time value profit potential.  A moderately in-the-money Covered Call position was established and the probability that these shares will close in-the-money on the options expiration date was 67.1%.  The next quarterly earnings report on November 5th, 2025 is after the October 3rd options expiration date.

As detailed below, a potential return-on-investment result is +2.2% absolute return-on-investment (equivalent to +71.8% annualized return-on-investment for the next 11 days) if the Coinbase Global Inc. share price is in-the-money (i.e. above the $315.00 strike price) and therefore assigned on its October 3rd, 2025 options expiration date.  

Coinbase Global Inc. (COIN) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
9/22/2025 Bought 100 Coinbase Global Inc. shares at $331.45.

9/22/2025 Sold 1 COIN 10/3/2025 $315.00 Call option @ $23.13 per share.  The Implied Volatility of this Call option was 59.7% when this position was established.  

A possible overall performance result (including commissions) for this Coinbase Global Inc. Covered Call position is as follows:
Covered Calls Net Investment: $30,832.67
= ($331.45 - $23.13) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$2,312.33
= ($23.13 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 Coinbase shares assigned at the $315.00 strike price at expiration): -$1,645.00

+($315.00 strike price - $331.45 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 COIN shares are in-the-money and therefore assigned at the $315.00 strike price at the options expiration date): +$667.33
= (+$2,312.33 option income + $0.00 dividend income - $1,645.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.2%
= +$667.33/$30,832.67
Potential Annualized Return-on-Investment: +71.8%
= (+$667.33/$30,832.67) * (365/11 days)

September 19th, 2025 Monthly Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with September 19th, 2025 monthly options expirations and all three positions closed with their stock prices in-the-money. The Calls expired today with no remaining value and the Covered Calls were closed out by the stocks being sold at their respective strike prices, so the maximum potential return-on-investment profit on their options expiration dates was achieved for these three positions.  The return-on-investment details for each position is as follows:

1. DICK'S Sporting Goods, Inc. (DKS) -- +1.5% absolute return-on-investment (equivalent to +53.9% annualized return-on-investment) for the 10 days of this investment.  This DICK'S Covered Calls position had a $215.00 strike price and it closed at $221.95 today.  The original blog post showing the details of this position is here. 

2. Fiserv Inc. (FI) -- +1.2% absolute return-on-investment (equivalent to +48.4% annualized return-on-investment) for the 9 days of this investment.  This Fiserv position had a $130.00 strike price and it closed at $131.80 today.  The blog post showing the details of this position is here.

3. Nvidia Corporation (NVDA) -- +1.1% absolute return-on-investment (equivalent to +51.7% annualized return-on-investment) for the 8 days of this investment.  This NVIDIA position had a $172.50 strike price and it closed at $176.60 today.  The blog post showing the details of this position is here. 

As always, I welcome your questions at the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls in iShares Bitcoin ETF

Today I established a short-term Covered Calls position in iShares Bitcoin ETF (ticker IBIT).  My net buy/write limit order at $61.90 was executed by simultaneously purchasing two hundred shares at $65.43 and selling two September 26th, 2025 weekly Call options at the $62.50 strike price at $3.53 per share, which provides a $.60 per share = [$3.53 Call options premium received - ($65.43 stock purchase price - $62.50 options strike price)] maximum time value profit potential.  A moderately in-the-money Covered Calls positions was established and the probability that these ETF shares will close in-the-money on the options expiration date was 76.0%.  

The iShares Bitcoin ETF (ticker IBIT) is the largest Bitcoin ETF and it provides direct exposure to the spot price of Bitcoin. It was launched in January 2024 as one of the first U.S.-listed spot Bitcoin ETFs approved by the SEC.  IBIT is a good way for us retail investors to gain exposure to Bitcoin since it holds actual Bitcoin in custody (not futures contracts), thus enabling us to gain exposure to Bitcoin’s price movements through a traditional brokerage account without having to buy or store Bitcoin ourselves (and at a reasonably low annual management fee of .25%).      

As detailed below, a potential return-on-investment result is +1.0% absolute return-on-investment (equivalent to +35.0% annualized return-on-investment for the next 10 days) if the iShares Bitcoin ETF share price is in-the-money (i.e. above the $62.50 strike price) and therefore assigned on its September 26th, 2025 options expiration date.  

iShares Bitcoin ETF (IBIT) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
9/16/2025 Bought 200 iShares Bitcoin ETF shares at $65.43.

9/16/2025 Sold 2 IBIT 9/26/2025 $62.50 Call options @ $3.53 per share.  The Implied Volatility of these Calls was 37.6% when this position was established.  

A possible overall performance result (including commissions) for this iShares Bitcoin ETF Covered Calls position is as follows:
Covered Calls Net Investment: $12,381.34
= ($65.43 - $3.53) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$704.66
= ($3.53 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 iShares Bitcoin ETF shares assigned at the $62.50 strike price at expiration): -$586.00
+($62.50 strike price - $65.43 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 IBIT shares are in-the-money and therefore assigned at the $62.50 strike price at the options expiration date): +$118.66
= (+$704.66 options income + $0.00 dividend income - $586.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.0%
= +$118.66/$12,381.34
Potential Annualized Return-on-Investment: +35.0%
= (+$118.66/$12,381.34) * (365/10 days)

Established Covered Calls in NVIDIA Corporation

This morning a short-term Covered Calls position was established in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $167.96 was executed by simultaneously purchasing two hundred shares at $176.24 and selling two September 26th, 2025 weekly Call options at the $170.00 strike price at $8.28 per share, which provides a $2.04 per share = [$8.28 Call options premium received - ($176.24 stock purchase price - $170.00 options strike price)] time value profit potential.  This is the second Covered Calls position in my current portfolio; the first position at the $172.50 strike price has an expiration date this Friday.  A moderately in-the-money Covered Calls positions was established for my new position with the probability that NVIDIA's stock will close in-the-money on the options expiration date was 71.0%.  As preferred, the next earnings report on November 19th, 2025 is after the September 26th options expiration date. 

As detailed below, a potential return-on-investment result is +1.2% absolute return-on-investment (equivalent to +44.2% annualized return-on-investment for the next 10 days) if NVIDIA's share price is in-the-money (i.e. above the $170.00 strike price) and therefore assigned on its Sept 26th, 2025 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
9/16/2025 Bought 200 NVIDIA Corporation shares at $176.24.

9/16/2025 Sold 2 NVIDIA 9/26/2025 $170.00 Call options @ $8.28 per share.  The Implied Volatility of these Calls was 37.8% when this position was established.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $33,593.34
= ($176.24 - $8.28) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,654.66
= ($8.28 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned at the $170.00 strike price at expiration): -$1,248.00
+($170.00 strike price - $176.24 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares in-the-money and therefore assigned at the $170.00 strike price at the options expiration date): +$406.66
= (+$1,654.66 options income + $0.00 dividend income - $1,248.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.2%
= +$406.66/$33,593.34
Potential Annualized Return-on-Investment: +44.2%
= (+$406.66/$33,593.34) * (365/10 days)

Covered Calls Position Established in Amazon.com Inc.

Today a Covered Calls position of two weeks duration was established when my buy/write net debit limit order was executed at a price of $219.84.  Two hundred shares of Amazon.com Inc. (ticker symbol AMZN) stock were purchased at $228.31 and 2 September 26th, 2025 $222.50 Call options were sold at $8.47 per share.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $2.66 per share [$8.47 Call options premium - ($228.31 stock purchase price - $222.50 strike price)].  The probability that the Call option will be above the $222.50 strike price on the Sept 26th options expiration date when this Covered Calls position was established was 69.0%.

At $2.45 trillion, Amazon is the leading market cap company in the Consumer Discretionary sector by a very large margin.  Amazon will surpass Walmart this year (for the first time) as #1 in total retail sales in the U.S.  Of course, Amazon benefits tremendously in the Information Technology sector as well since it is #1 in revenue as the world's #1 cloud computing platform.  

There are 53 Wall Street analysts that cover Amazon.com and their average target price is $264.80 (+16.0% above today's stock purchase price).   As detailed in the chart below, Amazon passes all 18 criteria in my "Earnings Growers" stock screener.  

As detailed below, a potential return-on-investment result is +1.2% absolute return-on-investment (equivalent to +31.5% annualized return-on-investment for the next 14 days) if the Amazon.com Inc. share price is in-the-money (i.e. above the $222.50 strike price) and the stock is therefore assigned on its September 26th, 2025 options expiration date. 

Amazon.com Inc. (AMZN) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
9/12/2025 Bought 200 shares of Amazon.com stock @ $228.31 per share.  
9/12/2025 Sold 2 AMZN Sept. 26th, 2025 $222.50 Call options @ $8.47 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 26.9 when this position was established which, as preferred, is well above the current VIX of 14.6.  

A possible overall performance result (including commissions) if this position is assigned on its 9/26/2025 options expiration date is as follows:
Amazon.com Covered Calls Net Investment: $43,969.34
= ($228.31 - $8.47) * 200 shares + $1.34 commission

Net Profit Components:
(a) Option Income: +$1,692.66
= ($8.47 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Amazon.com stock is above the $222.50 strike price at the Sept 26th, 2025 options expiration date): -$1,162.00
= ($222.50 strike price - $228.31 stock purchase price) * 200 shares

Total Net Profit Potential (If AMZN is in-the-money and therefore assigned at the $222.50 strike price on its 9/26/2025 options expiration date): +$530.66
= (+$1,692.66 options income + $0.00 dividend income - $1,162.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.2%
= +$530.66/$43,969.34
Potential Equivalent Annualized-Return-on-Investment: +31.5%
= (+$530.66/$43,969.34) * (365/14 days)  

Established Covered Calls in Nvidia Corporation

This morning at 10:14am ET, a short-term Covered Calls position was established in Nvidia Corporation (ticker NVDA).  My net buy/write limit order at $170.56 was executed by simultaneously purchasing two hundred shares at $177.17 and selling two September 19th, 2025 Call options at the $172.50 strike price at $6.61 per share, which provides a $1.94 per share = [$6.61 Call options premium received - ($177.17 stock purchase price - $172.50 options strike price)] time value profit potential.  This $1.94 time value in the Calls exceeded (by $.19 per share) the $1.75 time value available from the comparable Puts which justifies establishing a higher potential return-on-investment Covered Calls position instead of its comparable Cash-Secured Puts position.  A moderately in-the-money Covered Calls position was established with the probability that the stock will close in-the-money on the options expiration date being at 70.2%.  As preferred, the next earnings report on November 19th, 2025 is after the September 19th options expiration date. 

Nvidia continues to be the leading AI-focused semiconductor company and their innovations continue.  Nvidia is my top-ranked megacap technology company since their primary customers are other IT behemoths such as Microsoft, Alphabet, Amazon, Meta, and Oracle each of whom is continuing with substantial annual increases in their capital expenditure purchases with Nvidia.  Nvidia is the primary revenue beneficiary from the huge expenditures of these megacap technology brethren.  

So, because of my continuing bullish outlook for Nvidia's potential growth in both revenue and earnings, this position continues my recent practice of establishing short-term in-the-money Covered Calls positions in Nvidia. I prefer short-term (less than 30 days duration) positions since: (1) the potential annualized return-on-investment is higher for shorter-duration positions; and (2) short-term positions provide us a more frequent opportunity to re-evaluate the existing positions, so we can react quickly if news causes a substantial stock price volatility -- whether bullish or bearish. 

 

As detailed below, a potential return-on-investment result is +1.1% absolute return-on-investment (equivalent to +51.7% annualized return-on-investment for the next 8 days) if the Nvidia share price is in-the-money (i.e. above the $172.50 strike price) and therefore assigned on its Sept 19th, 2025 options expiration date.  

Nvidia Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
9/11/2025 Bought 200 Nvidia Corporation shares at $177.17.

9/11/2025 Sold 2 NVDA 9/19/2025 $172.50 Call options @ $6.61 per share.  The Implied Volatility of these Calls was 36.0% when this position was established.  

A possible overall performance result (including commissions) for this Nvidia Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $34,113.34
= ($177.17 - $6.61) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,320.66
= ($6.61 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 Nvidia shares assigned at the $172.50 strike price at expiration): -$934.00
+($172.50 strike price - $177.17 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 Nvidia shares in-the-money and therefore assigned at the $172.50 strike price at the options expiration date): +$386.66
= (+$1,320.66 options income + $0.00 dividend income - $934.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.1%
= +$386.66/$34,113.34
Potential Annualized Return-on-Investment: +51.7%
= (+$386.66/$34,113.34) * (365/8 days)

Established Covered Calls in Fiserv Inc.

This afternoon at 3:07pm ET, a short-term Covered Calls position was established in Fiserv Inc. (ticker FI).  My net buy/write limit order at $128.46 was executed by simultaneously purchasing two hundred shares at $132.66 and selling two September 19th, 2025 monthly Call options at the $130.00 strike price at $4.20 per share, which provides a $1.54 per share = [$4.20 Call options premium received - ($132.66 stock purchase price - $130.00 options strike price)] time value profit potential.  An in-the-money Covered Calls positions was established with the probability that the stock will close in-the-money on the options expiration date was 65.3%. 

Fiserv is a fintech company in account processing and digital banking solutions, card issuer processing and network services, payments, e-commerce, and merchant acquiring and processing.  They also own Clover point-of-sales and business management systems.  Fiserv enjoys double-digit organic growth in both revenues and earnings per share.  Just today they announced their first-place ranking (for the third consecutive year) in the IDC FinTech rankings Top 100.

Fiserv's LSEG Stock Reports Plus has an average rating of 8 and an optimized rating of 9 (on a scale of 1 to 10).  In addition, the 29 analysts that cover them have a current average target price of $184.00 (+38.7% above today's stock purchase price).  Finally, it passed all criteria in my StockRover Overall stock screener as shown here:

 

As detailed below, a potential return-on-investment result is +1.2% absolute return-on-investment (equivalent to +48.4% annualized return-on-investment for the next 9 days) if the Fiserv share price is in-the-money (i.e. above the $130.00 strike price) and therefore assigned on its September 19th, 2025 options expiration date.  

Fiserv Inc. (FI) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
9/10/2025 Bought 200 Fiserv Inc. shares at $132.66.

9/10/2025 Sold 2 Fiserv 9/19/2025 $130.00 Call options @ $4.20 per share.  

A possible overall performance result (including commissions) for this Fiserv Inc. Covered Calls position is as follows:
Covered Calls Net Investment: $25,693.34
= ($132.66 - $4.20) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$838.66
= ($4.20 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 Fiserv shares assigned at the $130.00 strike price at expiration): -$532.00
+($130.00 strike price - $132.66 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 Fiserv shares are in-the-money and therefore assigned at the $130.00 strike price at the options expiration date): +$306.66
= (+$838.66 options income + $0.00 dividend income - $532.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.2%
= +$306.66/$25,693.34
Potential Annualized Return-on-Investment: +48.4%
= (+$306.66/$25,693.34) * (365/9 days)

Established Covered Call Position in DICK'S Sporting Goods Inc.

A short-term Covered Call position was established in DICK'S Sporting Goods Inc. (ticker DKS) when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $213.06 was executed.  One hundred shares were purchased at $221.04 and one September 19th, 2025 Call option was sold at $7.98 at the $215.00 strike price.  The potential time value profit is $1.94 per share = [$215.00 strike price - ($221.04 stock purchase price - $7.98 Call option price)].   A moderately in-the-money Covered Calls position was established with the probability that the position will be assigned on the options expiration date was 71.2% when this position was established.  As is my preference, there is no earnings report prior to the options expiration date.

DICK'S goes ex-dividend this Friday which is exactly one week prior to the options expiration date on September 19th at $1.212 per share (a 2.2% annual dividend yield).  As detailed at the bottom of this post, this Covered Call meets all nine criteria of my Dividend Capture Strategy (see here).

As detailed below, two potential return-on-investment results for this DICK'S Sporting Goods Inc. Covered Call position is: (1) +0.9% absolute return (equivalent to +110.4% annualized return-on-investment for the next 3 days) if the stock is assigned early on the day prior to its September 12th ex-dividend date; OR (2) +1.5% absolute return (equivalent to +53.9% annualized return-on-investment for the next 10 days) if DICK'S stock is assigned on the Sept 19th, 2025 options expiration date. 

DICK'S Sporting Goods Inc. (DKS) -- New Covered Call Position

The buy/write transaction was:
9/9/2025 Bought 100 DICK'S Sporting Goods shares @ $221.04
9/9/2025 Sold 1 DKS 9/19/2025 $215.00 Call option @ $7.98 per share.  The Implied Volatility of this DKS Call option was 30.5 when this Covered Call transaction was executed.

Two possible overall performance results (including commissions) for this DICK'S Sporting Goods Covered Call position is as follows:
Covered Call Net Investment: $21,306.67
= ($221.04 - $7.98) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$797.33
= ($7.98 * 100 shares) - $.67 commission
(b) Dividend Income: (If stock assigned early on the day prior to the Sept 12th option expiration date) = +$0.00; OR
(b) Dividend Income: (If stock assigned on the Sept. 19th option expiration date) = +$121.120

= $1.212 per share x 100 shares
(c) Capital Appreciation (If DICK'S shares assigned early on the day prior to the Sept. 12th ex-dividend date): -$604.00
+($215.00 strike price - $221.04 stock purchase price) * 100 shares; OR

(c) Capital Appreciation (If DICK'S shares assigned on the Sept. 19th, 2025 options expiration date): -$604.00
= +($215.00 - $221.04) * 100 shares

1. Total Net Profit (If options exercised early): +$193.33

= (+$797.33 options income +$0.00 dividend income - $604.00 capital appreciation)

2. Total Net Profit (If options exercised on the Sept. 19th, 2025 options expiration date): +$314.53

= (+$797.33 options income +$121.20 dividend income - $604.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If the DICK'S Sporting Goods shares are assigned early on the day prior to the 9/12/2025 options expiration date): +0.9%

= +$193.33/$21,306.67

Potential Annualized Return-on-Investment (If 100 DICK'S shares assigned at the $215.00 strike price on the Sept. 19th, 2025 options expiration date): +110.4%

= (+$314.53/$21,306.67) * (365/3 days)

2. Potential Absolute Return-on-Investment (If the DICK'S Sporting Goods shares are assigned at the $215.00 strike price at the 9/19/2025 options expiration date): +1.5%

= +$314.53/$21,306.67

Potential Annualized Return-on-Investment (If 100 DICK'S shares assigned at the $215.00 strike price on the Sept. 19th, 2025 options expiration date): +53.9%

= (+$314.53/$21,306.67) * (365/10 days)

My Dividend Capture Strategy chart for this DICK'S Covered Call Position (meets all 9 criteria):

September 5th, 2025 Option Expiration Results

The Covered Calls Advisor Portfolio had one Covered Call position in T-Mobile US, Inc. (TMUS) at the September 5th, 2025 weekly options expiration date and at the $245.00 strike price.  The position closed in-the-money yesterday at $252.76 per share, so the Call option expired and the 100 TMUS shares were sold at their $245.00 strike price.  A summary of the results is:

T-Mobile US, Inc. -- +0.9% absolute return-on-investment (equivalent to +28.6% annualized return-on-investment) for the 11 days of this Covered Call investment.  The original blog post when this position was established is here. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net