Covered Calls Position Established in Schlumberger N.V.

Today a Covered Calls position was established in Schlumberger N.V. (ticker symbol SLB) when my December 12th, 2025 at the $34.50 strike price buy/write limit order was executed.  For Schlumberger (now named SLB), 400 shares were purchased at $35.61 and 4 December 12th, 2025 Call options were sold at $1.57 per share at the $34.50 strike price.  Given my current "Neutral" Overall Market Meter outlook, a moderately in-the-money Covered Calls positions was established.  The probability that the position will be in-the-money on the options expiration date was 66.8% when this position was established.  

SLB has an intervening ex-dividend of $.285 per share (a 3.2% annual dividend yield) on December 3rd, 2025 so the potential results detailed below includes the possibility of a position close out by early assignment if the stock moves significantly higher by the market close on December 2nd (the last business day prior to the ex-dividend date).  Also, the average Target Price of the Wall Street analysts that cover SLB is $44.92 (+26.1% above today's $35.61 stock purchase price). 

Two potential return-on-investment results are: 

•  +1.3% absolute return (equivalent to +69.4% annualized return for the next 7 days) if the stock is assigned early (on the last business day prior to the December 3rd, 2025 ex-dividend date); OR 

• +2.2% absolute return (equivalent to +49.5% annualized return over the next 16 days) if the stock is assigned on the December 12th options expiration date.

SLB N.V. (SLB) -- New Covered Calls Position
The buy/write transaction was:
11/26/2025 Bought 400 SLB shares @ $35.61
11/26/2025 Sold 4 SLB 12/12/2025 $34.50 Call options @ $1.57
Note: the Time Value (aka Extrinsic Value) in the Call options was $.46 per share = [$1.57 Call options premium - ($35.61 stock price - $34.50 strike price)]
12/3/2025 Upcoming quarterly ex-dividend of $.285 per share

Two possible overall performance results (including commissions) for this SLB Covered Calls position are as follows:
Covered Calls Net Investment: $13,618.68
= ($35.61 - $1.57) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$625.32
= ($1.57 * 400 shares) - $2.68 commission
(b) Dividend Income (If option exercised early on 12/2/2025, the business day prior to the December 3rd ex-div date): +$0.00; or
(b) Dividend Income (If SLB stock assigned at the Dec. 12th, 2025 expiration): +$114.00
= ($.285 dividend per share x 400 shares)

(c) Capital Appreciation (If SLB Call options assigned early on Dec. 3rd, 2025): -$444.00
+($34.50 strike price - $35.61 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If SLB shares assigned at $34.50 strike price at the Dec. 12th options expiration date): -$444.00
+($34.50 - $35.61) * 400 shares

1. Total Net Profit [If option exercised early on Dec. 3rd, 2025]: +$181.32

= (+$625.32 options income +$0.00 dividend income -$444.00 capital appreciation); or

2. Total Net Profit (If SLB shares assigned at $34.50 strike price at the Dec. 12th, 2025 expiration): +$295.32

= (+$625.32 options income + $114.00 dividend income - $444.00 capital appreciation)

1. Absolute Return-on-Investment (early assignment): +1.3%

= +$181.32/$13,618.68

Annualized Return-on-Investment (If options assigned early): +69.4%

= (+$181.32/$13,618.68) * (365/7 days); or

2. Absolute Return-on-Investment (If SLB shares assigned at $34.50 at the 12/12/2025 options expiration date): +2.2%

= +$295.32/$13,618.68

Annualized Return-on-Investment (If SLB shares assigned at $34.50 at the Dec. 12th, 2025 options expiration date): +49.5%

= (+$295.32/$13,618.68) * (365/16 days)

Either outcome provides a very attractive annualized return-on-investment result for this SLB N.V. investment.  These returns will be achieved as long as the stock is above the $34.50 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $33.755 ($35.61 - $1.57 - $.285) provides 5.2% downside protection below today's stock purchase price.