December 19th, 2025 Options Expiration Results

The Covered Calls Advisor Portfolio had seven Covered Calls positions with December 19th, 2025 monthly options expiration dates.  Three positions in Amazon.com Inc., Global Payments Inc., and Leidos Holdings Inc. closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  Four positions in Halozyme Therapeutics Inc., KraneShares CSI China Internet ETF, NVIDIA Corporation, and Sea Limited ADR closed out-of-the-money so their Calls 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. Amazon.com Inc. (AMZN) -- +1.5% absolute return (equivalent to +35.4% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $222.50 strike price since the stock closed in-the-money at $227.35 per share.  The most recent post detailing this Covered Calls position is here. 

2. Global Payments Inc. (GPN) -- +1.3% absolute return (equivalent to +37.8% annualized return-on-investment) for the 9 days of this investment.  This Covered Calls position was assigned at the $75.00 strike price since the stock closed in-the-money at $80.85 per share.  The most original blog post detailing this Covered Calls position is here. 

3. Halozyme Therapeutics Inc. (HALO) -- This Covered Calls position closed yesterday at $67.35 which was below its $70.00 strike price, so the two Call options expired and 200 Halozyme 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 two Call options against the 200 Halozyme shares currently held or close out the position by selling the 200 shares.   

4. KraneShares CSI China Internet ETF (KWEB) -- This Covered Calls position closed yesterday at $36.50 which was below its $37.00 strike price, so the three Call options expired and 300 KWEB 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 three Call options against the 300 KWEB shares currently held or close out the position by selling the 300 shares.   

5. Leidos Holdings Inc. (LDOS) -- +0.8% absolute return (equivalent to +30.7% annualized return-on-investment) for the 10 days of this investment.  This Covered Calls position was assigned at the $180.00 strike price since the stock closed in-the-money at $184.68 per share.  The original blog post detailing this Covered Calls position is here. 

6. NVIDIA Corporation (NVDA) -- This Covered Calls position closed yesterday at $180.99 which was below its $185.00 strike price, so the two Call options expired and 200 NVIDIA shares now remain in the Covered Calls Advisor Portfolio.  The most recent blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Calls position by selling two Call options against the 200 NVIDIA shares currently held or close out the position by selling the 200 shares.   

7. Sea Limited ADR (SE) -- This Covered Calls position closed yesterday at $121.97 which was well below its $130.00 strike price, so the two Call options expired and 200 Sea Limited 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 two Call options against the 200 Sea Ltd. shares currently held or close out the position by selling the 200 shares.

I welcome your feedback at my email address shown below on anything related to the Covered Calls investing strategy.

Best Wishes and Happy Holidays!

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Call in NVIDIA Corporation

Today I established a Covered Calls position of 14 days duration in NVIDIA Corporation (ticker NVDA).  NVIDIA is my top investment in the megacap technology space and I am continuing my recent trend of establishing positions every week in this company.  I have NVIDIA Covered Calls with expiration dates today, next Friday, and now again two weeks from today on January 2nd, 2026.  

My net buy/write limit order at $174.70 was executed by simultaneously purchasing one hundred shares at $178.50 and selling one January 2nd, 2026 weekly Call option at $3.80 per share and at the $180.00 strike price. A slightly out-of-the-money (strike price above the stock purchase price) Covered Call position was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $180.00 strike price) on the 1/2/2026 options expiration date was 44.8% when this transaction was executed. 

As detailed below, two potential return-on-investment results are: (1) +2.2% absolute return-on-investment (equivalent to +56.6% annualized return-on-investment for the next 14 days) if NVIDIA's share price is unchanged at the $178.50 stock purchase price on the January 2nd, 2026 options expiration date; and  (2) +3.0% absolute return-on-investment (equivalent to +79.0% annualized return-on-investment for the next 14 days) if NVIDIA's share price is in-the-money (i.e. above the $180.00 strike price) and therefore assigned on its January 2nd, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
12/19/2025 Bought 100 NVIDIA Corporation shares at $178.50.

12/19/2025 Sold 1 NVIDIA 1/2/2026 $180.00 Call option @ $3.80 per share.  The Implied Volatility of these Calls was 31.0 when this position was established.  

Two possible overall performance results (including commissions) for this NVIDIA Corporation Covered Calls position are as follows:
Covered Calls Net Investment: $17,470.67
= ($178.50 - $3.80) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$379.33
= ($3.80 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares close at the unchanged purchase price of $178.50 per share on the 1/2/2026 options expiration date): +$0.00
+($178.5 closing price at expiration - $178.50 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $180.00 strike price) on the 1/2/2026 options expiration date): +$150.00
+($180.00 strike price - $178.50 stock purchase price) * 100 shares

1. Total Net Profit Potential (stock closes at the unchanged purchase price of $178.50 per share on the 1/2/2026 options expiration date): +$379.33
= (+$379.33 option income + $0.00 dividend income + $0.00 capital appreciation)
2. Total Net Profit Potential (If 100 NVIDIA shares assigned at the $180.00 strike price on the 1/2/2026 options expiration date): +$529.33 ($180.00 strike price - $178.50 purchase price) x 100 shares + $379.33 Call option premium = $150.00 + $379.33

1. Potential Absolute Return-on-Investment (If 100 NVIDIA shares close at the unchanged purchase price of $178.50 per share on the 1/2/2026 options expiration date): +2.2%

= +$379.33/$17,470.67
Potential Annualized Return-on-Investment (If 100 NVIDIA shares close at the unchanged purchase price of $178.50 per share on the 1/2/2026 options expiration date): +56.6%

= (+$379.33/$17,470.67) * (365/14 days)

2. Potential Absolute Return-on-Investment (If 100 NVIDIA shares assigned at the $180.00 strike price on the 1/2/2026 options expiration date): +3.0%
= (+$529.33/$17,470.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $180.00 strike price on the 1/2/2026 options expiration date): +79.0%
= (+$529.33/$17,470.67) * (365/14 days)

Established Covered Call Position in Philip Morris International Inc.

This morning, a Covered Call position was established in Philip Morris International Inc. (ticker PM) when the Covered Calls Advisor's buy/write limit order at a net debit price of $153.40 was transacted.  One hundred shares were purchased at $158.53 and one January 9th, 2025 Call option was sold at $5.13 at the $155.00 strike price.  The potential time value profit was $1.60 per share = [$155.00 strike price - ($158.53 stock purchase price - $5.13 Call option price)].  A moderately in-the-money Covered Call position was established with the probability that the position would be assigned on the options expiration date was 67.6%.  As is my preference, there is no earnings report prior to the options expiration date.  Philip Morris goes ex-dividend on December 26th, 2025 at $1.47 per share (a 3.7% annual dividend yield).  This quarterly dividend amount is +8.9% above that for the same quarter last year.  

Analysts' current average target price for Philip Morris is $181.17 (+14.3% above today's purchase price).  Philip Morris did not appear today on any of my primary stock screeners.  However, LSEG rates it as a 9 for both their Average Rating and their Optimized Rating (on a scale of 1 to 10).

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

•  +1.0% absolute return (equivalent to +47.4% annualized return-on-investment for the next 8 days) if the stock is assigned early (last trading day prior to the December 26th, 2025 ex-dividend date); OR 

• +2.0% absolute return (equivalent to +33.1% annualized return-on-investment over the next 22 days) if the stock is assigned on the January 9th, 2026 options expiration date.

Philip Morris International Inc. (PM) -- New Covered Call Position
The simultaneous net debit buy/write transaction was:
12/18/2025 Bought 100 Philip Morris shares @ $158.53.
12/18/2025 Sold 1 Philip Morris 1/9/2026 $155.00 Call option @ $5.13 per share.
Note: the Implied Volatility of this Call option was 19.2 when this position was established.
12/26/2025 Upcoming quarterly ex-dividend of $1.47 per share.

Two possible overall performance results (including commissions) for this Philip Morris Covered Call position are as follows:
Covered Calls Cost Basis: $15,340.67

= ($158.53 - $5.13) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$512.33
= ($5.13 * 100 shares) - $.67 commission
(b) Dividend Income (If options exercised early on Dec. 24th, 2025, the last trading day prior to the Dec. 26th ex-div date): +$0.00; or
(b) Dividend Income (If Philip Morris stock assigned on the January 9th, 2026 options expiration -- so the dividend is captured): +$147.00
= ($1.47 dividend per share x 100 shares)

(c) Capital Appreciation (If Philip Morris Call option assigned early on Dec. 26th, 2025): -$353.00
+($155.00 strike price - $158.53 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $155.00 strike price at options expiration): -$353.00
+($155.00 - $158.53) * 100 shares

1. Total Net Profit (If options exercised early): +$159.33

= (+$512.33 option income + $0.00 dividend income - $353.00 capital appreciation); or

2. Total Net Profit (If Philip Morris shares assigned at $155.00 on the Jan. 9th, 2026 expiration date): +$306.33

= (+$519.33 option income + $147.00 dividend income - $353.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised on the last trading day prior to the Dec. 26th, 2025 ex-dividend date]: +1.0%

= +$159.33/$15,340.67

Annualized Return-on-Investment (If option exercised early): +47.4%

= (+$159.33/$15,340.67) * (365/8 days); or

2. Absolute Return-on-Investment (If Philip Morris shares assigned on the January 9th, 2026 options expiration date): +2.0%

= +$306.33/$15,340.67

Annualized Return-on-Investment (If Philip Morris shares assigned at $155.00 at the January 9th, 2026 options expiration date): +33.1%

= (+$306.33/$15,340.67) * (365/22 days)

Either outcome provides a satisfactory return-on-investment result for this Philip Morris Covered Call investment.  These returns will be achieved as long as the stock is above the $155.00 strike price at assignment.  However, if the stock declines below the strike price, the breakeven price of $151.93 = ($158.53 stock price - $5.13 Call option price - $1.47 dividend) provides 4.2% downside protection below today's stock purchase price.

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 in the chart below, all nine criteria are achieved for this Philip Morris International Inc. Covered Call position.

Continuation of Covered Call Position in Microsoft Corporation

The Covered Calls Advisor Portfolio has a Covered Call position in Microsoft Corporation (ticker MSFT) which expired on Friday, December 12th.  Today I decided to continue this position by rolling down-and-out from the $492.50 strike price to the January 2nd, 2026 options expiration at the $487.50 strike price by selling-to-open one Call at $6.30 per share when Microsoft's stock price was $484.12.  

As detailed below, a potential outcome for this Microsoft investment if the stock is in-the-money and therefore assigned on the January 2nd, 2026 options expiration date is -0.3% absolute return-on-investment over 64 days (equivalent to -1.9% annualized-return-on-investment) if the stock closes above the $487.50 strike price on the 1/2/2026 options expiration date.  The details showing the potential return-on-investment results are as follows:

Microsoft Corporation (MSFT) -- Continuation of Covered Call Position

The net debit buy/write limit order was executed as follows:
10/30/2025 Bought 100 shares of Microsoft stock @ $522.64 per share.  
10/30/2025 Sold 1 MSFT November 7th, 2025 $512.50 Call option @ $14.08 per share.  The Implied Volatility of the Call was 25.3 when this transaction was executed.

11/7/2025 One hundred Microsoft shares closed below the $512.50 strike price at $496.77, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

11/10/2025 Continued this Microsoft Corporation Covered Call position by selling 1 November 14th, 2025 $505.00 Call option at $4.00 per share when the stock was trading at $502.45 per share.

11/14/2025 One Microsoft 11/14/2025 $505.00 Call option expired out-of-the-money, so the 100 Microsoft shares remain in the Covered Calls Advisor Portfolio.

11/20/2025 Ex-dividend of $.91 per share.

11/28/2025 Continued this Microsoft Covered Call position by rolling down-and-out by selling one 12/12/2025 $492.50 Call option at $8.20 per share.  

12/12/2025 One hundred Microsoft shares closed below the $492.50 strike price, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

12/18/2025 Continued this Microsoft Corporation Covered Call position by selling 1 January 2nd, 2026 $487.50 Call option at $6.30 per share when the stock was trading at $484.12 per share.

A possible overall performance result (including commissions) if this position is assigned on its 1/2/2026 options expiration date is as follows:
Microsoft Covered Call Net Investment: $50,856.67
= ($522.64 - $14.08) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$3,255.32
= ($14.08 + $4.00 + $8.20 + $6.30) * 100 shares - $2.68 commissions
(b) Dividend Income: +$91.00 = $.91 ex-dividend x 100 shares
(c) Capital Appreciation (If Microsoft stock is above the $487.50 strike price at the January 2nd, 2026 option expiration date): -$3,514.00
= ($487.50 strike price - $522.64 stock purchase price) * 100 shares

Potential Total Net Profit (If assigned at expiration): -$167.68
= (+$3,255.32 option income + $91.00 dividend income - $3,514.00 capital appreciation)

Potential Absolute Return-on-Investment: -0.3%
= -$167.68/$50,856.67
Potential Equivalent Annualized-Return-on-Investment: -1.9%
= (-$167.68/$50,856.67) * (365/64 days)

Established Covered Call Position in NetApp Inc.

This afternoon, a Covered Call position was established in NetApp Inc. (ticker NTAP) when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $105.54 was executed.  One hundred shares were purchased at $110.74 and one January 9th, 2025 Call option was sold at $5.20 at the $107.00 strike price.  The potential time value profit was $1.46 per share = [$107.00 strike price - ($110.74 stock purchase price - $5.20 Call option price)].  A moderately in-the-money Covered Call position was established with the probability that the position would be assigned on the options expiration date was 69.3%.  As is my preference, there is no earnings report prior to the options expiration date.  NetApp goes ex-dividend on January 2nd which was exactly one week prior to the options expiration date on January 9th, 2026 at $.52 per share (a 1.9% annual dividend yield). 

NetApp appeared today on my Free Cash Flow Growers stock screener.  Analysts' average target price is $123.23 (+11.3% above today's purchase price).  Also, CFRA and LSEG Stock Reports Plus both have Buy ratings; and LSEG has NetApp at a 9 for both their Average Rating and their Optimized Rating (on a scale of 1 to 10).

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

•  +1.4% absolute return (equivalent to +31.4% annualized return-on-investment for the next 16 days) if the stock is assigned early (last trading day prior to the January 2nd, 2026 ex-dividend date); OR 

• +1.9% absolute return (equivalent to +29.7% annualized return-on-investment over the next 23 days) if the stock is assigned on the January 9th, 2026 options expiration date.

NetApp Inc. (NTAP) -- New Covered Call Position
The simultaneous net debit buy/write transaction was:
12/17/2025 Bought 100 NetApp Inc. shares @ $110.74.
12/17/2025 Sold 1 NetApp 1/9/2026 $107.00 Call option @ $5.20 per share.
Note: the Implied Volatility of this Call option was 26.3 when this position was established.
1/2/2026 Upcoming quarterly ex-dividend of $.52 per share.

Two possible overall performance results (including commissions) for this NetApp Inc. Covered Call position is as follows:
Covered Calls Cost Basis: $10,554.67

= ($110.74 - $5.20) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$519.33
= ($5.20 * 100 shares) - $.67 commission
(b) Dividend Income (If options exercised early on Dec. 31st, 2025, the last business day prior to the January 2nd, 2026 ex-div date): +$0.00; or
(b) Dividend Income (If NetApp stock assigned on the January 9th, 2026 options expiration -- so the dividend is captured): +$52.00
= ($.52 dividend per share x 100 shares)

(c) Capital Appreciation (If NetApp Call option assigned early on January 2nd, 2026): -$374.00
+($107.00 strike price - $110.74 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $107.00 strike price at options expiration): -$374.00
+($107.00 - $110.74) * 100 shares

1. Total Net Profit (If options exercised early): +$145.33

= (+$519.33 option income + $0.00 dividend income - $374.00 capital appreciation); or

2. Total Net Profit (If NTAP shares assigned at $107.00 on the Jan. 9th, 2026 expiration date): +$197.33

= (+$519.33 option income + $52.00 dividend income - $374.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised on business day prior to the Jan. 2nd, 2026 ex-dividend date]: +1.4%

= +$145.33/$10,554.67

Annualized Return-on-Investment (If option exercised early): +31.4%

= (+$145.33/$10,554.67) * (365/16 days); or

2. Absolute Return-on-Investment (If NetApp shares assigned on the January 9th, 2026 options expiration date): +1.9%

= +$197.33/$10,554.67

Annualized Return-on-Investment (If NetApp shares assigned at $107.00 at the January 9th, 2026 options expiration date): +29.7%

= (+$197.33/$10,554.67) * (365/23 days)

Either outcome provides a satisfactory return-on-investment result for this NetApp Inc. Covered Call investment.  These returns will be achieved as long as the stock is above the $107.00 strike price at assignment.  However, if the stock declines below the strike price, the breakeven price of $105.02 = ($110.74 stock price - $5.20 Call option price - $.52 dividend) provides 5.2% downside protection below today's stock purchase price.

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 in the chart below, all nine criteria are achieved for this NetApp Inc. Covered Call position.

Established Covered Calls Position in Medtronic PLC

Today a Covered Calls position was established in Medtronic PLC (ticker symbol MDT) when the Covered Calls Advisor's buy/write limit order was executed -- 300 shares were purchased at $97.94 and 3 January 9th, 2026 Call options were sold at $2.69 at the $96.00 strike price.   Given the Covered Calls Advisor's current "Neutral" Overall Market Meter outlook, a slightly in-the-money Covered Calls position was established -- the probability of being in-the-money on the options expiration date was 71.2% when this position was established. In addition, there is an upcoming ex-dividend of $.71 per share on December 26th, 2025 which provides an annual dividend yield of 2.9% at today's stock purchase price.  Potential results for this Covered Calls position, as detailed below, includes the possibility of early exercise since the ex-dividend is prior to the January 9th options expiration date.

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

•  +0.8% absolute return (equivalent to +31.6% annualized return-on-investment for the next 9 days) if the stock is assigned early (last trading day prior to the Dec. 26th ex-dividend date); OR 

• +1.5% absolute return (equivalent to +24.2% annualized return-on-investment over the next 23 days) if the stock is assigned on the January 9th, 2026 options expiration date. 
  

Medtronic PLC (MDT) -- New Covered Calls Position
The buy/write transaction was:
12/17/2025 Bought 300 Medtronic PLC shares @ $97.94
12/17/2025 Sold 3 MDT 1/9/2026 $96.00 Call options @ $2.69
Note 1: the Implied Volatility of the Calls was 15.6 when this transaction executed.
Note 2: the Time Value (aka Extrinsic Value) in the Call options was $.75 per share = [$2.69 Call options premium - ($97.94 stock price - $96.00 strike price)]
12/26/2025 Upcoming quarterly ex-dividend of $.71 per share

Two possible overall performance results (including commissions) for this Medtronic Covered Calls position are as follows:
Covered Calls Net Investment: $28,577.01
= ($97.94 - $2.69) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$804.99
= ($2.69 * 300 shares) - $2.01 commission
(b) Dividend Income (If option exercised early on December 24th, the business day prior to the Dec. 26th ex-div date): +$0.00; or
(b) Dividend Income (If Medtronic stock assigned at the January 9th, 2026 options expiration date): +$213.00
= ($.71 dividend per share x 300 shares)

(c) Capital Appreciation (If Medtronic Call options assigned early on Dec. 24th): -$582.00
+($96.00 - $97.94) * 300 shares; or
(c) Capital Appreciation (If MDT shares assigned at $96.00 strike price at options expiration): -$582.00
+($96.00 - $97.94) * 300 shares

1. Total Net Profit (If option exercised early): +$222.99

= (+$804.99 options income +$0.00 dividend income - $582.00 capital appreciation); or

2. Total Net Profit (If Medtronic shares assigned at $96.00 strike price at the Jan 9th, 2026 options expiration date): +$435.99

= (+$804.99 options income +$213.00 dividend income -$582.00 capital appreciation)

1. Absolute Return-on-Investment (If three MDT Call options exercised early on Dec. 24th): +0.8%

= +$222.99/$28,577.01

Annualized Return-on-Investment (If options assigned early): +31.6%

= (+$222.99/$28,577.01) * (365/9 days); or

2. Absolute Return-on-Investment (If Medtronic shares assigned at $96.00 at the Dec. 26th options expiration date): +1.5%

= +$435.99/$28,577.01

Annualized Return-on-Investment (If MDT shares assigned at $96.00 at the Jan. 9th, 2026 options expiration date): +24.2%
= (+$435.99/$28,577.01) * (365/23 days)

Either outcome provides a satisfactory return-on-investment result for this Medtronic investment.  These returns will be achieved as long as the stock is above the $96.00 strike price at assignment.  If the stock declines below the strike price, the breakeven price of $94.54 ($97.94 - $2.69 - $.71) provides 3.5% downside protection below today's stock purchase price.

Established Covered Calls in Generac Holdings Inc.

Today I established a Covered Calls position of in Generac Holdings Inc. (ticker GNRC).  My net buy/write limit order at $151.20 was executed by simultaneously purchasing two hundred shares at $158.49 and selling two January 2nd, 2026 weekly Call options at $7.29 per share and at the $155.00 strike price. An in-the-money Covered Calls position was established with the probability that Generac's stock will close in-the-money (i.e. above the $155.00 strike price) on the 1/2/2026 options expiration date was 58.8% when this transaction was executed.  Also, the next earnings report on February 11th, 2026 is after the January 2nd, 2026 options expiration date.  Wall Street analysts that cover Generac have an average target price of $214.83 which is +35.5% above today's stock purchase price.

As detailed below, a potential return-on-investment result if the stock closes above the $155.00 strike price on the 1/2/2026 expiration date is +2.5% absolute return-on-investment (equivalent to +50.9% annualized return-on-investment for the next 18 days). 

Generac Holdings Inc. (GNRC) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
12/15/2025 Bought 200 Generac shares at $158.49.

12/15/2025 Sold 2 Generac 1/2/2026 $155.00 Call options @ $7.29 per share.  The Implied Volatility of these Calls was 37.5 when this position was established.  

A possible overall performance result (including commissions) for this Generac Covered Calls position is as follows:
Covered Calls Net Investment: $30,241.34
= ($158.49 - $7.29) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,456.66
= ($7.29 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 Generac shares assigned (i.e. above the $155.00 strike price) on the 1/2/2026 options expiration date): -$698.00
+($155.00 strike price - $158.49 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 Generac shares assigned at the $155.00 strike price on the 1/2/2026 options expiration date): +$758.66

= ($1,456.66 options income + $0.00 dividend income - $698.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 Generac shares assigned at the $155.00 strike price on the 1/2/2026 options expiration date): +2.5%
= (+$758.66/$30,241.34)

Potential Annualized Return-on-Investment (If 200 Generac shares assigned at the $155.00 strike price on the 1/2/2026 options expiration date): +50.9%
= (+$758.66/$30,241.34) * (365/18 days)

Established Covered Call in Meta Platforms Inc.

Today a Covered Call position of 11 days duration was established in Meta Platforms Inc. (ticker META).  My net buy/write limit order at $625.96 was executed by simultaneously purchasing one hundred shares at $642.08 and selling one December 26th, 2025 weekly Call option at the $635.00 strike price at $16.12 per share, which provides a $9.04 per share = [$16.12 Call option premium received - ($642.08 stock purchase price - $635.00 option strike price)] time value profit potential.  A moderately in-the-money Covered Call position was established for my new position with the probability that Meta's stock will close in-the-money on the 12/26/2025 options expiration date was 59.4% when this transaction was executed.  I chose a Covered Call (CC) instead of selling a Cash-Secured Put (CSP) since the $9.04 time value in the CC was substantially higher (and thus provides a higher potential return-on-investment) than the comparable $8.05 for the CSP when this position was established.  As preferred, the next earnings report on January 28th, 2026 is after the 12/26/2025 options expiration date. 

Meta is currently my second highest ranked megacap company (behind only NVIDIA).  The table below shows my comparison of the highest 7 market cap companies (all of which are tech-related) in the S&P 500 index.  Of these 7 companies, I now own positions in each of the top 4 companies shown below in the column labeled as "My Overall Ranking".

         

As detailed below, a potential return-on-investment result for this Meta Covered Call position is +1.4% absolute return-on-investment (equivalent to +47.9% annualized return-on-investment for the next 11 days) if Meta's share price is in-the-money (i.e. above the $635.00 strike price) and therefore assigned on its December 26th, 2025 options expiration date.  

Meta Platforms Inc. (META) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
12/15/2025 Bought 100 Meta Platforms shares at $642.08.

12/15/2025 Sold 1 Meta 12/26/2025 $635.00 Call option @ $16.12 per share.  The Implied Volatility of these Calls was 26.7% when this position was established.  

A possible overall performance result (including commissions) for this Meta Covered Call position is as follows:
Covered Calls Net Investment: $62,596.67
= ($642.08 - $16.12) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,611.33
= ($16.12 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 Meta shares assigned at the $635.00 strike price at expiration): -$708.00
+($635.00 strike price - $642.08 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 Meta shares in-the-money and therefore assigned at the $635.00 strike price at the options expiration date): +$903.33
= (+$1,611.33 option income + $0.00 dividend income - $708.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.4%
= +$903.33/$62,596.67
Potential Annualized Return-on-Investment: +47.9%
= (+$903.33/$62,596.67) * (365/11 days)

December 12th, 2025 Options Expiration Results

The Covered Calls Advisor Portfolio had five Covered Calls positions with December 12th, 2025 options expiration dates.  Four positions [Bank of America Corporation, The Cigna Group, DexComm Inc., and Schlumberger (i.e. SLB)] closed in-the-money and their Call options expired and their stocks were therefore assigned (i.e. sold) at their respective strike prices.  One position in Microsoft Corporation closed out-of-the-money, so the Call option expired and 100 Microsoft shares now remain in the Covered Calls Advisor Portfolio.  I will decide early next week whether to sell the Microsoft shares or continue the Covered Call by  selling a future Microsoft Call against the 100 shares owned.  

A summary of the results for the four positions closed out yesterday is as follows:

1. Bank of America Corporation (BAC) -- +1.3% absolute return (equivalent to +42.9% annualized return-on-investment) for the 11 days of this investment.  This Covered Calls position closed in-the-money yesterday at $55.14 per share which was above its $52.50 strike price, so the maximum potential annualized profit was achieved.  The original post detailing this position is here.

2. The Cigna Group (CI) -- +1.3% absolute return (equivalent to +34.5% annualized return-on-investment) for the 14 days of this investment.  This Covered Call position closed in-the-money yesterday at $274.70 per share which was above its $270.00 strike price, so the maximum potential annualized profit was achieved.  The original post detailing this position is here.  

3. DexComm Inc. (DXCM) -- +1.7% absolute return (equivalent to +44.8% annualized return-on-investment) for the 14 days of this investment.  This Covered Calls position closed in-the-money yesterday at $66.96 per share which was above its $60.00 strike price, so the maximum potential annualized profit was achieved.  The original post detailing this position is here.

4. Schlumberger Ltd. (SLB) -- +2.2% absolute return (equivalent to +49.5% annualized return-on-investment) for the 16 days of this investment.  This Covered Calls position closed in-the-money yesterday at $39.45 per share which was above its $34.50 strike price, so the maximum potential annualized profit was achieved.  The original post detailing this position is here.  

I welcome your feedback at my email address shown below with any comments or questions you have related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Early Assignment of Covered Calls Position in The Walt Disney Company

I was notified via email early this morning by my broker (Schwab) that the three Walt Disney Company (ticker DIS) December 26th, 2025 Call options were exercised yesterday.  Disney's stock price increased from $107.57 when this position was established to $111.60 at yesterday's market close.  The original $.72 time value in the Calls when the position was established had declined on yesterday's market close to $0.00.  So, with 14 days remaining until the December 26th, 2025 options expiration date, the owner of these Calls exercised their option to buy the 300 shares at the $105.00 strike price in order to receive the December 15th (next Monday's) $.75 per share ex-dividend.  Although I will not receive the ex-dividend, I am pleased with the +49.9% annualized-return-on-investment (aroi) result achieved since it exceeds the maximum aroi that might have been achieved if this position instead had remained in-the-money and would therefore be assigned on the December 26th options expiration date.   

The post when this Walt Disney Company Covered Calls position was originally established is here.  

As detailed below, the return-on-investment result for this Walt Disney Company Covered Calls position was +0.7% absolute return in 5 days (equivalent to a +49.9% annualized return-on-investment).

The Walt Disney Company (DIS) -- Covered Calls Position Closed by Early Assignment

The buy/write transaction was:
12/10/2025 Bought 300 The Walt Disney Company shares @ $107.57
12/10/2025 Sold 3 DIS 12/26/2025 $105.00 Call options @ $3.29 per share.

12/15/2025 Three Walt Disney Company Calls were exercised on the last business day (Friday, 12/12/2025) prior to next Monday's 12/15/2025 ex-dividend date, so the Call options expired and the 300 Disney shares were sold at the $105.00 strike price.

The overall performance results (including commissions) for this Disney Covered Calls position are as follows:
Covered Calls Net Investment: $31,286.01
= ($107.57 - $3.29) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$984.99
= ($3.29 * 300 shares) - $2.01 commission
(b) Dividend Income:  +$0.00
(c) Capital Appreciation (Disney stock is assigned early): -$771.00

= ($105.00 stock selling price - $107.57 stock purchase price) x 300 shares

Total Net Profit (Disney stock assigned early on Dec. 12th which is the last trading day prior to next Monday's 12/15/2025 ex-dividend date): +$213.99

= (+$984.99 options income + $0.00 dividend income - $771.00 capital appreciation)

Absolute Return-on-Investment: +0.7%

= (+$213.99/$31,286.01)

Equivalent Annualized Return-on-Investment: +49.9%

= (+$213.99/$31,286.01) * (365/5 days)

Established Covered Call in NVIDIA Corporation

Today a Covered Call position of 14 days duration was established in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $166.90 was executed by simultaneously purchasing one hundred shares at $175.99 and selling one December 26th, 2025 weekly Call option at the $170.00 strike price at $9.09 per share, which provides a $3.10 per share = [$9.09 Call option premium received - ($175.99 stock purchase price - $170.00 option strike price)] time value profit potential.  This is the second NVIDIA Covered Calls position in my current portfolio with the prior position being at the December 19th $185 strike price.  A moderately in-the-money Covered Call position was established for my new position with the probability that NVIDIA's stock will close in-the-money on the 12/26/2025 options expiration date was 66.5% when this transaction was executed.  As preferred, the next earnings report on February 2026 is after the 12/26/2025 options expiration date. 

As detailed below, a potential return-on-investment result is +1.9% absolute return-on-investment (equivalent to +48.3% annualized return-on-investment for the next 14 days) if NVIDIA's share price is in-the-money (i.e. above the $170.00 strike price) and therefore assigned on its December 26th, 2025 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
12/12/2025 Bought 100 NVIDIA Corporation shares at $175.99.

12/12/2025 Sold 1 NVIDIA 12/26/2025 $170.00 Call option @ $9.09 per share.  The Implied Volatility of these Calls was 39.6% when this position was established.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Calls Net Investment: $16,690.67
= ($175.99 - $9.09) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$908.33
= ($9.09 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $170.00 strike price at expiration): -$599.00
+($170.00 strike price - $175.99 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $170.00 strike price at the options expiration date): +$309.33
= (+$908.33 option income + $0.00 dividend income - $599.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.9%
= +$309.33/$16,690.67
Potential Annualized Return-on-Investment: +48.3%
= (+$309.33/$16,690.67) * (365/14 days)

Established Covered Call in Vistra Corporation

Today a Covered Call position of 15 days duration was established in Vistra Corporation (ticker VST).  My net buy/write limit order at $152.40 was executed by simultaneously purchasing one hundred shares at $165.65 and selling one December 26th, 2025 weekly Call option at the $155.00 strike price at $13.25 per share, which provides a $2.60 per share = [$13.25 Call option premium received - ($165.65 stock purchase price - $155.00 option strike price)] time value profit potential.  A moderately in-the-money Covered Call position was established with the probability that Vistra's stock will close in-the-money on the 12/26/2025 options expiration date was 72.6% when this transaction was executed.  As preferred, the next earnings report on February 26th, 2026 is after the December 26th, 2025 options expiration date. 

In addition to the $2.60 potential time value decay profit at assignment for this position, Vistra Corp. also goes ex-dividend on December 22nd at $.227 per share (a modest 0.5% dividend yield) which is prior to the December 26th options expiration date -- so this dividend is included in the potential return-on-investment results detailed below. 

Vistra is one of the largest power producers and retail energy providers in the U.S.  Following th 2024 Energy Harbor acquisition, Vistra owned 41 gigawatts of nuclear, coal, natural gas, solar, and energy storage assets.  Its retail electricity business serves 5 million customers in 20 states, including about one-third of all Texas electricity consumers.  It has a secular growth opportunity since electricity demand will likely be the biggest bottleneck in the build out of new data centers. The average target price by the 21 analysts currently following Vistra is $231.32 (+39.6% above today's stock purchase price).

As detailed below, two potential return-on-investment results are: (1) +1.8% absolute return-on-investment (equivalent to +59.7% annualized return-on-investment for the next 11 days) if Vistra's stock is assigned on Friday, December 19th (the last trading day prior to the December 22nd, 2025 ex-dividend date; OR (2) +1.9% absolute return-on-investment (equivalent to +47.4% annualized return-on-investment for the next 15 days) if Vistra's share price is in-the-money (i.e. above the $155.00 strike price) and therefore assigned on its December 26th, 2025 options expiration date.   

Vistra Corporation (VST) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
12/11/2025 Bought 100 Vistra Corporation shares at $165.65.
12/11/2025 Sold 1 Vistra 12/26/2025 $155.00 Call option @ $13.25 per share.  The Implied Volatility of these Calls was 52.6% when this position was established.  
12/22/2025 Ex-dividend at $.227 per share.

Two possible overall performance results (including commissions) for this Vistra Covered Call position is as follows:
Covered Call Net Investment: $15,240.67
= ($165.65 - $13.25) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,339.33
= ($13.40 * 100 shares) - $.67 commission
(b) Dividend Income: (if stock assigned early on the last trading day prior to the 12/22/2025 ex-dividend date): +$0.00
(b) Dividend Income: (if stock is in-the-money and therefore assigned on the 12/26/2025 options expiration date): +$22.70

= $.227 per share x 100 shares

(c) Capital Appreciation (If 100 Vistra shares assigned either on the last trading day prior to the ex-dividend date or on the 12/26/2025 options expiration date): -$1,065.00
+($155.00 strike price - $165.65 stock purchase price) * 100 shares

1. Total Net Profit Potential (If 100 Vistra shares are assigned early on 12/19/2025 which is the last trading day prior to the ex-dividend date on 12/22/2025): +$274.33
= (+$1,339.33 options income + $0.00 dividend income - $1,065.00 capital appreciation); OR

2. Total Net Profit Potential (If 100 Vistra shares in-the-money and therefore assigned at the $155.00 strike price at the options expiration date): +$297.03
= (+$1,339.33 options income + $22.70 dividend income - $1,065.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If 100 Vistra shares are assigned early on 11/19/2025 which is the last trading day prior to the ex-dividend date on 12/22/2025) : +1.8%
= +$274.33/$15,240.67
Potential Annualized Return-on-Investment: +59.7%
= (+$274.33/$15,240.67) * (365/11 days); OR 

2. Potential Absolute Return-on-Investment (If 100 Vistra shares in-the-money and therefore assigned at the $155.00 strike price at the 12/26/2025 options expiration date): +1.9%
= +$297.03/$15,240.67
Potential Annualized Return-on-Investment: +47.4%
= (+$297.03/$15,240.67) * (365/15 days)

Covered Calls Position Established in Dell Technologies Inc.

Early in this morning's trading session, I established a Covered Calls position in Dell Technologies Inc. (ticker DELL) when two hundred shares were purchased at $136.00 and two December 26th, 2025 Call options were sold at $8.40 per share at the $130.00 strike price. So, the corresponding potential time value (aka extrinsic value) profit potential is $2.40 per share = [$8.40 Call options premium - ($136.00 stock purchase price - $130.00 strike price)].  An in-the-money Covered Calls position was established with the probability that the Calls will be in-the-money and thus the stock would be assigned at $130.00 per share on the options expiration date was 67.6% when this position was established.  As I prefer, there is no intervening quarterly earnings report prior to the options expiration date.  This Covered Calls position was preferable to its comparable Cash-Secured Puts position since the potential time value profit for the Calls was higher than that of the comparable Puts when this position was established.

Dell Technologies is a manufacturer of IT hardware, software, and service solutions spanning both traditional infrastructure and emerging, multi-cloud technologies.  Its two business segments are: (1) Infrastructure Solutions Group (ISG is its greater growth segment), which provides enterprise on-premises data center infrastructure; and (2) Client Solutions Group (CSG), which provides premium and commercial PCs and peripherals.  In ISG, Dell has become a leading vendor of Nvidia AI servers to corporations, and they have a large global distribution and services footprint.  Dell has also won CoreWeave and Elon Musk's xAI as customers in support of their AI buildouts.  In CSG, Dell is now poised to benefit from an improving product cycle for PCs and servers since companies are now refreshing their computers to current versions of Windows after Microsoft ended support of Windows 10 in October this year. 

Dell is now priced at an attractive valuation with a P/E ratio of only 12.1 on a forward-twelve-months estimates basis, and with mid-teens or higher earnings growth (a PEG ratio below 1.0), there is a good likelihood of stock price appreciation in 2026 from P/E multiple expansion.  Twenty Wall Street analysts that cover Dell have an average "Buy" rating and a $159.78 target price.  Also, Dell passed all criteria in my "VQM" (Value+Quality+Momentum) stock screener.  The output criteria from this screener are shown on this chart:  

As detailed below, a potential return-on-investment result is +1.9% absolute return-on-investment (equivalent to +45.6% annualized return-on-investment for the next 15 days) if Dell's share price is in-the-money (i.e. above the $130.00 strike price) and the stock is therefore assigned on its December 26th, 2025 options expiration date. 

 

Dell Technologies Inc. (DELL) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:

12/11/2025 Bought 200 shares of Dell Technologies stock @ $136.00 per share.  
12/11/2025 Sold 2 DELL December 26th, 2025 $130.00 Call options @ $8.40 per share.  Note: the Implied Volatility of the Calls was 44.1% when this position was established.  

A possible overall performance result (including commissions) if the position is in-the-money on the 12/26/2025 options expiration date is as follows:
Dell Technologies Covered Calls Net Investment: $25,521.34
= ($136.00 - $8.40) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,678.66
= ($8.40 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Dell Technologies stock is above the $130.00 strike price at the December 26th options expiration date): -$1,200.00
= ($130.00 strike price - $136.00 stock purchase price) * 200 shares

Potential Total Net Profit (If in-the-money and therefore assigned at expiration): +$478.66
= (+$1,678.66 options income + $0.00 dividend income - $1,200.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 12/26/2025 options expiration date): +1.9% = +$478.66/$25,521.34

Potential Equivalent Annualized-Return-on-Investment: +45.6%
= (+$478.66/$25,521.34) * (365/15 days)

Established Covered Calls Position in The Walt Disney Company

A Covered Calls position was established in The Walt Disney Company (DIS) early in this morning's trading when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $104.28 was executed. Three hundred shares were purchased at $107.57 and three December 26th, 2025 in-the-money Call options were sold at $3.29 at the $105.00 strike price. The potential time value profit from selling the Call options was $.72 per share [$3.29 Call options premium - ($107.57 stock purchase price - $105.00 strike price)].  This is the first position established in my Covered Calls Advisor Portfolio at the December 26th, 2025 options expiration date. 

In addition, there is an upcoming semi-annual ex-dividend of $.75 per share on December 15th, 2025 which is a +50.0% increase above last year's dividend amount in the same month.  So, this dividend is included in the potential annualized-return-on-investment results detailed below.  Also as desired, the next quarterly earnings report on February 4th, 2026 is after the December 26th, 2025 options expiration date.  

LSEG Stock Reports Plus has a 9 Average Rating and an 8 Optimized Rating (on a scale of 1 to 10) for Disney's stock.  The current average target price by the 26 analysts covering Disney is $135.02 which is +25.5% above today's stock purchase price.  Also, Disney passed all 17 criteria in my "Key Metrics for Comparing Companies" stock screener as shown in the table below:

Two potential return-on-investment results for this Disney Covered Calls position are: (1) +0.7% absolute return-on-investment (equivalent to +49.9% annualized return-on-investment for the next 5 days) if the stock price is assigned early on the last trading day prior to the Dec. 15th ex-dividend date; and (2) +1.4% absolute return-on-investment (equivalent to +32.0% annualized return-on-investment for the next 16 days) if the stock price increases and is in-the-money (i.e. above the $105.00 strike price) on the December 26th, 2025 options expiration date.

The Walt Disney Company (DIS) -- New Covered Calls Position

The buy/write transaction was:
12/10/2025 Bought 300 The Walt Disney Company shares @ $107.57
12/10/2025 Sold 3 DIS 12/26/2025 $105.00 Call options @ $3.29 per share.
12/15/2025 Ex-dividend of $.75 per share.

Two possible overall performance results (including commissions) for this Disney Covered Calls position are as follows:
Covered Calls Net Investment: $31,286.01
= ($107.57 - $3.29) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$984.99
= ($3.29 * 300 shares) - $2.01 commission
(b) Dividend Income:  +$225.00
= ($.75 dividends per share x 300 shares)
(c) Capital Appreciation (If DIS stock price assigned early on Dec. 12th which is the last trading day prior to next Monday's 12/15/2025 ex-dividend date): -$771.00

= ($105.00 stock selling price on expiration date - $107.57 stock purchase price) x 300 shares

(c) Capital Appreciation (If DIS stock price is above the $105.00 strike price on the 12/26/2025 options expiration date): -$771.00

= ($105.00 stock selling price on expiration date - $107.57 stock purchase price) x 300 shares

1. Total Net Profit (If stock price assigned early on Dec. 12th which is the last trading day prior to next Monday's 12/15/2025 ex-dividend date): +$213.99

= (+$984.99 options income + $0.00 dividend income - $771.00 capital appreciation); OR

2. Total Net Profit (If stock price increases to above the $105.00 strike price on the 12/26/2025 options expiration date): +$438.99

= (+$984.99 options income + $225.00 dividend income - $771.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If stock price assigned early): +0.7%

= (+$213.99/$31,286.01)

Potential Equivalent Annualized Return-on-Investment: +49.9%

= (+$213.99/$31,286.01) * (365/5 days); OR

2. Potential Absolute Return-on-Investment (If stock price is above the $105.00 strike price on the 12/26/2025 options expiration date and therefore assigned): +1.4%

= (+$438.99/$31,286.01)

Potential Equivalent Annualized Return-on-Investment: +32.0%

= (+$438.99/$31,286.01) * (365/16 days)

Covered Calls Established in Leidos Holdings Inc.

Early in this mornings's trading session, a short-term Covered Calls position was established in Leidos Holdings Inc. (ticker LDOS) with the purchase of 200 shares at $185.67 per share and two December 19th, 2025 Call options were sold for $6.75 per share at the $180.00 strike price.  The buy/write net debit limit order at $178.92 was executed, so the time value was $1.08 per share [$6.75 Call options premium - ($185.67 stock purchase price - $180.00 strike price)]. As I prefer, Leidos' next quarterly earnings report is not until February 17th, 2026 which is long after next week's December 19th, 2025 options expiration date.  A moderately in-the-money Covered Calls positions was established with the probability that the Calls will expire in-the-money on the 12/19/2025 options expiration date was 77.9%.  

In addition to the $1.08 potential time value decay profit at assignment for this position, Leidos Holdings Inc. also goes ex-dividend on December 15th at $.43 per share (0.9% dividend yield) which is prior to the December 19th options expiration date -- so this dividend is included in the potential return-on-investment results detailed below. 

Leidos is a $23.7 billion market cap company in the IT Services industry.  They are a technology, engineering, and science company that provides solutions in the defense, intelligence, civil, and health markets, both domestically and internationally.  They have a 9 Average Rating and a 10 Optimized Rating (on a scale of 1 to 10) by LSEG Stock Reports Plus.  The 13 analysts that cover Leidos have a current average target price of $216.00 (+16.3% above today's stock purchase price).  It appeared today in my StockRover Overall stock screener by passing every criteria I specified (see chart below): 

As detailed below, two potential return-on-investment results are: (1) +0.6% absolute return (equivalent to +36.5% annualized return-on-investment over the next 6 days) if the stock is assigned on December 12th (the last trading day prior to the December 15th, 2025 ex-dividend date; or (2) +0.8% absolute return (equivalent to +30.7% annualized return-on-investment over the next 10 days) if the stock is assigned on the December 19th, 2025 options expiration date.

Leidos Holdings Inc. (LDOS) -- New Covered Calls Position 

The Buy/Write transaction was as follows:
12/9/2025 Bought 200 shares of Leidos Holdings Inc. shares @ $185.67 per share.  
12/9/2025 Sold 2 Leidos December 19th, 2025 $180.00 Call options @ $6.75 per share.  The Implied Volatility of these Call options was 24.6 today when this transaction was executed. 

Two possible overall performance results (including commissions) for this Leidos Covered Calls position are as follows:

Covered Calls Net Investment: $35,785.34
= ($185.67 - $6.75) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,348.66
= ($6.75 * 200 shares) - $1.34 commission
(b) Dividend Income (If assigned early on 12/12/2025 which is the last trading day prior to the 12/15/2025 ex-dividend date): +$0.00
(b) Dividend Income (If assigned on the 12/19/2025 options expiration date): +$86.00
= $.43 x 200 shares

(c) Capital Appreciation (If 200 Leidos shares assigned early on the 12/15/2025 ex-dividend date): -$1,134.00
+($180.00 strike price - $185.67 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If 200 Leidos shares assigned at the $180.00 strike price on the options expiration date): -$1,134.00
+($180.00 strike price - $185.67 stock purchase price) * 200 shares

(1) Total Net Profit Potential (If 200 LDOS shares assigned early at the $180.00 strike price at the 12/15/2025 ex-dividend date): +$214.66
= (+$1,348.66 options income + $0.00 dividend income - $1,134.00 capital appreciation); or
(2) Total Net Profit Potential (If 200 Leidos shares assigned at the $180.00 strike price at the options expiration date): +$300.66 = (+$1,348.66 options income + $86.00 dividend income - $1,134.00 capital appreciation)

(1) Potential Absolute Return-on-Investment (if Leidos shares assigned early on the trading day prior to the 12/15/2025 ex-dividend date): +0.6%
= +$214.66/$35,785.34
Potential Annualized Return-on-Investment (if 200 LDOS shares assigned early on the 12/15/2025 ex-dividend date): +36.5%
= (+$214.66/$35,785.34) * (365/6 days)

(2) Potential Absolute Return-on-Investment (if LDOS shares assigned on the 12/19/2025 options expiration date): +0.8%
= +$300.66/$35,785.34
Potential Annualized Return-on-Investment (if Leidos shares assigned on the 12/19/2025 options expiration date): +30.7%
= (+$300.66/$35,785.34) * (365/10 days)

Continuation of Covered Calls Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in NVIDIA Corporation (ticker NVDA) which expired last Friday with the stock at $182.41 which was below the $185.00 strike price.  Today this position was continued by rolling out to two weeks to the December 19th, 2025 monthly options expiration date and at the same $185.00 strike price by selling-to-open two NVDA Calls at $5.75 per share when NVIDIA's stock price was $185.38.  

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the Dec. 19th options expiration date is +10.1% absolute return-on-investment over 29 days (equivalent to +127.5% annualized-return-on-investment) if the stock closes above the $185.00 strike price on the 12/19/2025 options expiration date.  The details showing the potential return-on-investment results are as follows:

NVIDIA Corporation (NVDA) -- New Covered Call Position

The original buy/write net limit order transaction was as follows:
11/21/2025 Bought 200 NVIDIA Corporation shares at $177.70.

11/21/2025 Sold 2 NVIDIA 12/5/2025 $185.00 Call options @ $4.50 per share.  The Implied Volatility of these Calls was 52.0 when this position was established.  
12/4/2025 Ex-dividend of $.01 per share.

12/5/2025 Two hundred NVIDIA shares closed below the $185.00 strike price at $182.41, so the two Call options expired and the 200 NVIDIA shares remained in the Covered Calls Advisor Portfolio.

12/8/2025 Continued this NVIDIA Corporation Covered Calls position by selling 2 December 19th, 2025 $185.00 Call options at $5.75 per share when the stock was trading at $185.38 per share.  

A possible overall performance results (including commissions) for this NVIDIA Corporation Covered Calls position if it closes above the $185.00 strike price at the Dec. 19th options expiration is as follows:
Covered Calls Net Investment: $34,641.34
= ($177.70 - $4.50) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,050.00
= ($4.50 + $5.75) * 200 shares - $2.68 commissions
(b) Dividend Income: +$2.00 = $.01 x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $185.00 strike price) on the 12/19 options expiration date): +$1,460.00
+($185.00 strike price - $177.70 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $185.00 strike price on the 12/19 options expiration date): +$3,510.00

= ($185.00 strike price - $177.70 purchase price) x 200 shares + $2,050.00 Call options premium = $1,460.00 + $2,050.00

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned at the $185.00 strike price on the 12/19 options expiration date): +10.1%
= (+$3,510.00/$34,641.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $185.00 strike price on the 12/5 options expiration date): +127.5%
= (+$3,510.00/$34,641.34) * (365/29 days)

Covered Call Position Closed in Netflix Inc.

Last Friday, the Covered Call position in Netflix Inc. (ticker NFLX) closed out-of-the-money at $100.24 which was well below its $108.00 strike price.  Netflix is now embroiled in an acquisition battle with Paramount for the Warner Brothers Discovery company, which is likely to become a prolonged battle.  During this time period, Netflix stock is unlikely to continue its past bullish trend, so I decided to close out this position by selling the 100 Netflix shares this morning at a market price of $98.16.  Since this was a relatively small investment of only 100 shares, I decided to limit my loss to $784.67 by selling the shares and closing out the position.  The transactions history for this Netflix Covered Call position and its associated return-on-investment results are detailed below.

Netflix Inc. (NFLX) -- Covered Call Position Closed Out

The buy/write net limit order transaction was:
11/19/2025 Bought 100 Netflix Inc. shares at $111.35.

11/19/2025 Sold 1 Netflix 12/5/2025 $108.00 Call option @ $5.35 per share.  The Implied Volatility of these Calls was 35.7% when this position was established.  

12/5/2025 One Netflix $108.00 Call option closed out-of-the-money, so the Call expired and 100 Netflix shares remained in the Covered Calls Advisor Portfolio.

12/8/2025 Closed out this Covered Calls position by selling the 100 Netflix shares at $98.16 per share. 

The overall performance result (including commissions) for this Netflix Covered Call position is as follows:
Covered Call Net Investment: $10,600.67
= ($111.35 - $5.35) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$534.33
= ($5.35 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Loss (100 Netflix shares sold at $98.16 per share): -$1,319.00
+($98.16 selling price - $111.35 stock purchase price) * 100 shares

Total Net Loss: -$784.67
= (+$534.33 option income + $0.00 dividend income - $1,319.00 capital appreciation)

Absolute Return-on-Investment: -7.4%
= -$784.67/$10,600.67
Annualized Return-on-Investment: -142.2%
= (-$784.67/$10,600.67) * (365/19 days)

December 5th, 2025 Options Expiration Results

The Covered Calls Advisor Portfolio had five Covered Calls positions with December 5th, 2025 options expiration dates.  Three of the positions (Capital One Financial Corporation, Corning Inc., and Vistra Corporation) closed in-the-money and were therefore assigned with their maximum potential return-on-investment achieved.  The other two positions (Netflix Inc. and NVIDIA Corporation) closed out-of-the-money.  Their Calls expired and their shares now remain in the Covered Calls Advisor Portfolio.  I will decide early next week for these two positions whether to sell the stocks (more likely for the Netflix position) or continue the Covered Calls by selling future Calls (most likely for the NVIDIA position) against the positions.  As always, I will post the details of my transactions for each of these two positions on the same day that they occur.   

The results for the three positions closed out yesterday are as follows:

1. Capital One Financial Corporation (COF) -- +3.1% absolute return (equivalent to +50.7% annualized return-on-investment) for the 22 days of this investment.  This Covered Calls position closed in-the-money yesterday at $230.68 per share which was well above its $212.50 strike price, so the maximum potential annualized profit was achieved for this position.  The recent post detailing this position is here. 

2. Corning Inc. (GLW) -- +1.6% absolute return (equivalent to +24.8% annualized return-on-investment) for the 24 days of this investment.  This Covered Calls position closed in-the-money yesterday at $85.97 per share which was above its $83.00 strike price, so the maximum potential annualized profit was achieved for this position.  The recent post detailing this position is here. 

3. Vistra Corporation (VST) -- +2.5% absolute return (equivalent to +65.0% annualized return-on-investment) for the 14 days of this investment.  This Covered Call position closed in-the-money yesterday at $167.17 per share which was above its $160.00 strike price, so the maximum potential annualized profit was achieved for this position.  The post detailing this position is here. 

As always, I welcome your feedback at my email address shown below on any topics related to the Covered Calls investing strategy.  Also email me if you would like my feedback on a specific Covered Call position you are contemplating.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Call Position Established in Amazon.com Inc.

Today my buy/write net debit limit order was executed at a price of $219.30 when 100 shares of Amazon.com Inc. (ticker symbol AMZN) stock was purchased at $229.91 and 1 December 19th, 2025 $222.50 Call option was sold at $10.61 per share.  The potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $3.20 per share [$10.61 Call option premium - ($229.91 stock purchase price - $222.50 strike price)].  The probability that the Calls will be above the $222.50 strike price on the 12/19/2025 options expiration date when this Covered Calls position was established was 69.0%.

There are 54 analysts following Amazon.com and their average target price is $297.23 (+29.3% above today's stock purchase price).  Also, LSEG Stock Reports Plus has a Buy rating with an Average Score of 8 and an Optimized Score of 9 (on a scale of 1 to 10). Amazon.com also passed all criteria in my customized "Current and Future Earnings Growers" stock screener as detailed in the chart below:

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

The net debit buy/write limit order was executed as follows:
12/4/2025 Bought 100 shares of Amazon.com stock @ $229.91 per share.  
12/4/2025 Sold 1 AMZN Dec. 19th, 2025 $222.50 Call option @ $10.61 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 32.1 when this position was established which, as preferred, is well above the current VIX of 16.1.  

A possible overall performance result (including commissions) if this position is assigned on its 12/19/2025 options expiration date is as follows:
Covered Call Net Investment: $21,930.67
= ($229.91 - $10.61) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,060.33
= ($10.61 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Amazon.com stock is above the $222.50 strike price at the December 19th, 2025 options expiration date): -$741.00
= ($222.50 strike price - $229.91 stock purchase price) * 100 shares

Total Net Profit Potential (If assigned at the $222.50 strike price on the Dec. 19th, 2025 options expiration date): +$319.33
= (+$1,060.33 options income + $0.00 dividend income - $741.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.5%
= +$319.33/$21,930.67
Potential Equivalent Annualized-Return-on-Investment: +35.4%
= (+$319.33/$21,930.67) * (365/15 days)

Covered Calls Established in Global Payments Inc.

In this afternoon's trading session, a short-term Covered Calls position was established in Global Payments Inc. (ticker GPN) with the purchase of 200 shares at $80.99 per share and two December 19th, 2025 Call options were sold for $6.69 per share at the $75.00 strike price.  The buy/write net debit limit order at $74.30 was executed, so the time value was $.70 per share [$6.69 Call options premium - ($80.99 stock purchase price - $75.00 strike price)]. As I prefer, GPN's next quarterly earnings report is not until February 12th, 2026 which is long after the December 19th, 2025 options expiration date.  A moderately in-the-money Covered Calls positions was established with the probability that the Calls will expire in-the-money on the 12/19/2025 options expiration date was 77.4%.  

In addition to the $.70 potential time value decay profit at assignment for this position, Global Payments also goes ex-dividend on December 12th at $.25 per share (1.2% dividend yield) which is prior to the December 19th options expiration date -- so this dividend is included in the potential return-on-investment results detailed below.  

As detailed below, two potential return-on-investment results are: (1) +0.9% absolute return (equivalent to +37.8% annualized return-on-investment over the next 9 days) if the stock is assigned on the December 11th (the last day prior to the December 12th, 2025 ex-dividend date; or (2) +1.3% absolute return (equivalent to +29.0% annualized return-on-investment over the next 16 days) if the stock is assigned on the December 19th, 2025 options expiration date.

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

The Buy/Write transaction was as follows:
12/3/2025 Bought 200 shares of Global Payments Inc. shares @ $80.99 per share.  
12/3/2025 Sold 2 GPN December 19th, 2025 $75.00 Call options @ $6.69 per share.  The Implied Volatility of these Call options was 36.8 today when this transaction was executed. 

Two possible overall performance results (including commissions) for this Global Payments Covered Calls position are as follows:

Covered Calls Net Investment: $14,861.34
= ($80.99 - $6.69) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,336.66
= ($6.69 * 200 shares) - $1.34 commission
(b) Dividend Income (If assigned early on 12/11/2025 which is the day prior to the 12/12/2025 ex-dividend date): +$0.00
(b) Dividend Income (If assigned on the 12/19/2025 options expiration date): +$50.00
= $.25 x 200 shares

(c) Capital Appreciation (If 200 Global Payments shares assigned early on the 12/12/2025 ex-dividend date): -$1,198.00
+($75.00 strike price - $80.99 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If 200 Global Payments shares assigned at the $75.00 strike price on the options expiration date): -$1,198.00
+($75.00 strike price - $80.99 stock purchase price) * 200 shares

(1) Total Net Profit Potential (If 200 GPN shares assigned early at the $75.00 strike price at the 12/12/2025 ex-dividend date): +$138.66
= (+$1,336.66 options income + $0.00 dividend income - $1,198.00 capital appreciation); or
(2) Total Net Profit Potential (If 200 GPN shares assigned at the $75.00 strike price at the options expiration date): +$188.66 = (+$1,336.66 options income + $50.00 dividend income - $1,198.00 capital appreciation)

(1) Potential Absolute Return-on-Investment (if GPN shares assigned early on the day prior to the 12/12/2025 ex-dividend date): +0.9%
= +$138.66/$14,861.34
Potential Annualized Return-on-Investment (if 200 GPN shares assigned early on 12/12/2025 ex-dividend date): +37.8%
= (+$138.66/$14,861.34) * (365/9 days)

(2) Potential Absolute Return-on-Investment (if GPN shares assigned on the 12/19/2025 options expiration date): +1.3%
= +$188.66/$14,861.34
Potential Annualized Return-on-Investment (if GPN shares assigned on the 12/19/2025 options expiration date): +29.0%
= (+$188.66/$14,861.34) * (365/16 days)

Established Covered Calls Position in KraneShares CSI China Internet ETF

A Covered Calls position was established today in KraneShares CSI China Internet ETF (ticker KWEB).  Three hundred shares were purchased at $37.41 and three December 19th, 2025 monthly Call options were sold at the $37.00 strike price at $1.13 per share--a buy/write net debit limit transaction of $36.28 per share which provides a maximum $.72 per share [$1.13 Call options premium - ($37.41 stock purchase price - $37.00 strike price)] time value profit potential.  The probability of the Calls being in-the-money on the options expiration date was 55.5% when this transaction occurred. 

As detailed below, a potential result is +2.0% absolute return-on-investment (equivalent to +42.2% annualized return-on-investment for the next 17 days) if the KWEB share price is in-the-money (i.e. above the $37.00 strike price) and therefore assigned on its December 19th, 2025 options expiration date.

 
KraneShares CSI China Internet ETF (KWEB) -- New Covered Calls Position 

The Buy/Write transaction was as follows:
12/2/2025 Bought 300 shares of KraneShares CSI China Internet ETF @ $37.41 per share.  
12/2/2025 Sold 3 KWEB December 19th, 2025 $37.00 Call options @ $1.13 per share.  The Implied Volatility of the Calls was 28.7 when this position was established.  

A possible overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows: 

KWEB Covered Calls Net Investment: $10,886.01

= ($37.41 - $1.13) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$336.99
= ($1.13 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 CSI China Internet ETF shares assigned at $37.00 strike price at expiration): -$123.00
+($37.00 strike price - $37.41 shares purchase price) * 300 shares

Total Net Profit Potential (If 300 CSI China Internet ETF shares are assigned because they are in-the-money at the options expiration date): +$213.99
= (+$336.99 options income + $0.00 dividend income - $123.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.0%
= +$213.99/$10,886.01
Potential Annualized Return-on-Investment: +42.2%
= (+$213.99/$10,886.01) * (365/17 days)