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)