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)