Established Covered Call Position in Gilead Sciences Inc.

In this morning's trading session, a Covered Call position was established in Gilead Sciences Inc. (ticker symbol GILD) when the Covered Calls Advisor's buy/write net debit limit order was executed. One hundred shares were purchased at $146.39 and one March 20th, 2026 Call option was sold at $7.87 per share at the $140.00 strike price.  Therefore, a net debit price of $138.52 which is a time value of $1.48 per share [$7.87 Call option price - ($146.39 stock price - $140.00 strike price)].  This is a moderately in-the-money position since its probability of closing in-the-money on the 3/20/2026 options expiration date was 73.1% when this position was established.  The current average target price of the analysts covering Gilead is $157.08 which is +7.3% above today's stock purchase price.  

Gilead Sciences Inc. is a U.S.-based biopharmaceutical company headquartered in Foster City, California, that develops and commercializes medicines for serious diseases including HIV, viral hepatitis, cancer, and other life-threatening conditions, with the core of its portfolio focused on HIV and hepatitis B and C.  Founded in 1987, it has become a leading player in antiviral therapies and oncology, with a strong global presence and significant investment in research and development. Gilead focuses on innovative drug discovery, strategic acquisitions, and expanding global access to treatment while maintaining a robust clinical pipeline.

Two potential return-on-investment results for this position are highlighted below and includes the possibility of early assignment since a quarterly ex-dividend of $.82 per share (2.2% annualized dividend yield) goes ex-dividend on March 13th (which is prior to the March 20th options expiration date).  Either an early assignment or an assignment on the options expiration date would be a desirable return-on-investment result since they both exceed my preferred minimum annualized return-on-investment criteria (see criteria #8 and #9 at the bottom of this post) when using my nine Dividend Capture Strategy criteria (see here).  Also, as I prefer, there is no intervening quarterly earnings report since Gilead's next quarterly earnings report on April 23rd, 2026 is after this position's March 20th, 2026 options expiration date.

  

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

•  +1.1% absolute return (equivalent to +38.6% annualized return-on-investment for the next 10 days) if the stock is assigned early (business day prior to the March 13th, 2026 ex-dividend date); OR 

• +1.7% absolute return (equivalent to +35.5% annualized return-on-investment over the next 17 days) if the stock is assigned on the March 20th, 2026 options expiration date.

Gilead Sciences Inc. (GILD) -- New Covered Call Position
The buy/write transaction was:
3/3/2026 Bought 100 Gilead Sciences Inc. shares @ $146.39
3/3/2026 Sold 1 Gilead 3/20/2026 $140.00 Call option @ $7.87 per share.  The Implied Volatility of the Call was 31.6 when this transaction occurred which, as I prefer, is above the current S&P 500 Volatility Index (i.e. VIX) of 24.2.
3/13/2026 Upcoming quarterly ex-dividend of $.82 per share

Two possible overall performance results (including commissions) for this Gilead Sciences Covered Call position are as follows:
Covered Call Net Investment: $13,852.67
= ($146.39 - $7.87) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$786.33
= ($7.87 * 100 shares) - $.67 commission
(b) Dividend Income (If option exercised early on March 12th, the last business day prior to the March 13th ex-div date): +$0.00; or
(b) Dividend Income (If Gilead stock assigned at the March 20th, 2026 options expiration date): +$82.00
= ($.82 dividend per share x 100 shares)
(c) Capital Appreciation (If Gilead Call option assigned early): -$639.00
+($140.00 strike price - $146.39 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $140.00 strike price at options expiration): -$639.00 = +($140.00 - $146.39) * 100 shares

1. Total Net Profit [If option exercised early]: +$147.33

= (+$786.33 option income +$0.00 dividend income - $639.00 capital appreciation); or

2. Total Net Profit (If Gilead shares assigned at $140.00 strike on the March 20th options expiration date): +$229.33

= (+$786.33 option income +$82.00 dividend income - $639.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised early on March 12th (business day prior to the March 13th ex-dividend date)]: +1.1%

= +$147.33/$13,852.67

Annualized Return-on-Investment (If option exercised early): +38.8%

= (+$147.33/$13,852.67) * (365/10 days); or

2. Absolute Return-on-Investment (If Gilead shares assigned at the $140.00 strike price at the March 20th, 2026 options expiration date): +1.7%

= +$229.33/$13,852.67

Annualized Return-on-Investment (If Gilead shares assigned at $140.00 at the 3/20/2026 options expiration): +35.5%

= (+$229.33/$13,852.67) * (365/17 days)

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.  All nine criteria are achieved for this Gilead Sciences Inc. Covered Call position.

Early Assignment of Covered Calls Position in Newmont Corporation

I was notified via email early this morning by my broker (Schwab) that the two Newmont Corporation (ticker NEM) March 6th, 2026 Call options were exercised early yesterday.  Newmont's stock price increased from $120.25 when this position was established to $128.47 at yesterday's market close.  The original $2.59 time value in the Calls when the position was established had declined on yesterday's market close to close to $0.00 per share.  So, with 3 days remaining until this Friday's March 6th options expiration date, the owner of these Calls exercised their option to buy the 200 shares at the $115.00 strike price in order to receive today's $.26 per share ex-dividend.  

Although I will not receive the ex-dividend, I am pleased with the +76.2% annualized-return-on-investment (aroi) result achieved since it exceeded the maximum aroi that might have been achieved if this position instead had remained in-the-money and would therefore be assigned on the March 6th options expiration date.   

The post when this Newmont Corporation Covered Calls position was originally established is here.  

As detailed below, the return-on-investment result for this Newmont Corporation Covered Calls position was +2.3% absolute return in 11 days (equivalent to a +76.2% annualized return-on-investment).

Newmont Corporation (NEM) -- Covered Calls Position Closed Out by Early Assignment
The buy/write transaction was:
2/20/2026 Bought 200 Newmont Corp shares @ $120.25.
2/20/2026 Sold 2 Newmont 3/6/2026 $115.00 Call options @ $7.84.
Note: the Implied Volatility of the Call options was 48.3% when this buy/write transaction was executed.
3/3/2026 Early Assignment of these two Newmont Call options, so the Calls expired and 200 NEM shares were sold at the $115.00 strike price.

The overall performance results (including commission) for this Wells Fargo Covered Calls position are as follows:
Covered Calls Net Investment: $22,483.34
= ($120.25 - $7.84) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,566.66
= ($7.84 * 200 shares) - $1.34 commission
(b) Dividend Income (Two NEM Call options exercised early on March 2nd, the last business day prior to the March 3rd ex-dividend date): +$0.00
(c) Capital Appreciation (Newmont Call options assigned early on March 3rd): -$1,050.00
= +($115.00 strike price - $120.25 stock purchase price) * 200 shares

Total Net Profit: +$516.66

= (+$1,566.66 options income + $0.00 dividend income - $1,050.00 capital appreciation)

Absolute Return-on-Investment: +2.3%

= +$516.66/$22,483.34

Annualized Return-on-Investment: +76.2%

= (+$516.66/$22,483.34) * (365/11 days)

February 27th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with February 27th, 2026 options expiration dates.  Two positions (Amazon.com Inc. and RTX Corporation), closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  One position in Capital One Financial Corporation closed out-of-the-money so its Call option 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) -- +1.9% absolute return (equivalent to +49.6% annualized return-on-investment) for the 14 days of this investment.  This Covered Call position was assigned at the $192.50 strike price since the stock closed in-the-money at $210.00 per share.  The original blog post detailing this Covered Call position is here. 

2. Capital One Financial Corporation (COF) -- This Covered Call position closed yesterday at $195.64 which was well below its $210.00 strike price, so the one Call option expired and 100 Capital One 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 Call position by selling a Call option against the 100 Capital One shares currently held or close out the position by selling these shares. 

3. RTX Corporation (RTX) -- +2.1% absolute return (equivalent to +42.7% annualized return-on-investment) for the 18 days of this investment.  This Covered Call position was assigned at the $195.00 strike price since the stock closed in-the-money at $202.62 per share.  The most recent blog post detailing this Covered Call position is here. 

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

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls in NVIDIA Corporation

Early in this morning's trading session, I established a Covered Calls position of 14 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $175.67 was executed by simultaneously purchasing two hundred shares at $180.02 and selling two March 13th, 2026 weekly Call options at $4.35 per share and at the $185.00 strike price. A moderately out-of-the-money (strike price above the stock purchase price) Covered Calls position was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $185.00 strike price) on the 3/13/2026 options expiration date was 37.6% when this transaction was executed. 

NVIDIA reported their Q4 earnings after the market close two days ago. They substantially beat analysts' estimates on all relevant metrics including both earnings and revenue (which at $68.1 billion was 72.4% above the comparable quarter last year). In addition, their next quarter guidance at $78 billion is 76.9% above last year.  Very surprisingly, their stock reacted very negatively yesterday.  But I agree with the numerous sell-side equity research firms that raised their NVIDIA post-earnings target prices to approximately +40% above the $180.02 price I paid today.  In short, I decided that the negative price reaction to earnings is unwarranted -- so this morning I established this new Covered Calls position. 

As detailed below, two potential return-on-investment results are: (1) +2.5% absolute return-on-investment (equivalent to +64.6% annualized return-on-investment for the next 14 days) if NVIDIA's share price is unchanged at the $180.02 stock purchase price on the March 13th, 2026 options expiration date; and  (2) +5.3% absolute return-on-investment (equivalent to +138.5% annualized return-on-investment for the next 14 days) if NVIDIA's share price is in-the-money (i.e. above the $185.00 strike price) and therefore assigned on its March 13th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
2/27/2026 Bought 200 NVIDIA Corporation shares at $180.02.

2/27/2026 Sold 2 NVIDIA 3/13/2026 $185.00 Call options @ $4.35 per share.  The Implied Volatility of these Calls was 44.8 when this position was established, well above (as preferred) the VIX which was at 20.7.  
3/11/2026 Ex-dividend of $.01 per share.  This miniscule dividend amount for the largest market cap company is ludicrous. 🤣

Two possible overall performance results (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$868.66
= ($4.35 * 200 shares) - $1.34 commission
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares close at the unchanged purchase price of $180.02 per share on the 3/13/2026 options expiration date): +$0.00
+($180.02 closing price at expiration - $180.02 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $185.00 strike price) on the 3/13/2026 options expiration date): +$996.00
+($185.00 strike price - $180.02 stock purchase price) * 200 shares

1. Total Net Profit Potential (If stock price closes at the unchanged purchase price of $180.02 per share on the 3/11/2026 options expiration date): +$870.66
= (+$868.66 option income + $2.00 dividend income + $0.00 capital appreciation)
2. Total Net Profit Potential (If 200 NVIDIA shares assigned at the $185.00 strike price on the 3/13/2026 options expiration date): +$1,866.66

= (+$868.66 option income + $2.00 dividend income + $996.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If 200 NVDA shares closing price is unchanged at the original purchase price of $180.02 per share on the 3/11 options expiration date): +2.5%
= +$870.66/$35,135.34
Potential Annualized Return-on-Investment (If 200 NVIDIA shares closing price is unchanged at the original $180.02 stock purchase price on the 3/11/2026 options expiration date): +64.6%
= (+$870.66/$35,135.34) * (365/14 days)

2. Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $185.00 strike price on the 3/11/2026 options expiration date): +5.3%
= (+$1,866.66/$35,135.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $185.00 strike price on the 3/11/2026 options expiration date): +138.5%
= (+$1,866.66/$35,135.34) * (365/14 days)

Established Covered Calls in Global Payments Inc.

This afternoon, a buy/write limit order was entered in Global Payments Inc. (ticker GPN) to buy 400 shares and simultaneously sell 4 Call options at the March 20th, 2026 options expiration date and at the $75.00 strike price. The net debit limit price for my order was $73.52 and this order was executed with 400 shares purchased at $78.63 and 4 March 20th, 2026 Call options sold for $5.11 per share.  Therefore, a maximum potential time value profit of $1.48 per share = [$5.11 options premium - ($78.63 stock price - $75.00 strike price)] is available for this position.  This in-the-money Covered Calls position has a probability of 68.0% of being in-the-money (i.e. above the $75.00 strike price) on the March 20th options expiration date.   

This position uses the Covered Calls Advisor's Dividend Capture Strategy (see here) since Global Payments has an upcoming quarterly ex-dividend of $.25 per share (a 1.3% annual dividend yield) on March 9th, 2026 which is prior to the March 20th options expiration date. Given that the overall stock market year-to-date has been relatively stagnant (although volatile from industry-to-industry), I am leaning toward positions that I'm bullish on but that also have intervening ex-dividend dates prior to the options expiration date.  For this Global Payments Covered Calls position, their dividend is included in the detailed return-on-investment calculations below.  Either an early assignment on the last trading day prior to the ex-dividend date (March 9th) or on the March 20th options expiration date would be desirable to the Covered Calls Advisor given the potential annualized return on investments for either outcome.  Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on May 5th, 2026 is after the March 20th, 2026 options expiration date.

Global Payments Inc. is an American multinational financial technology company that provides payment processing technology and software solutions to merchants, financial institutions, and consumers worldwide. It helps businesses accept credit, debit, digital and contactless payments and offers integrated commerce services across in-store, online, and mobile channels, supporting tens of billions of transactions annually across more than 175 countries. The company is headquartered in Atlanta, Georgia, is a Fortune 500® and S&P 500® member and employs roughly 27,000 people globally. In recent years it has pursued strategic acquisitions (notably recently completing its purchase of Worldpay) and divestitures to sharpen its focus as a pure-play commerce solutions provider with expanded scale and capabilities. Its technology portfolio includes point-of-sale systems, APIs, analytics and software that enable seamless payments and business operations across a wide range of industries.  

As shown on the table at the bottom of this post, eight of the nine criteria of the Dividend Capture Strategy are met with this position.  Even if the Global Payments stock price declines somewhat during the next 24 days until the options expiration date, if the stock closes above the $75.00 strike price, then a satisfactory annualized-return-on-investment of +35.9% will be achieved.  

The average Target Price of the analysts covering Global Payments is +30.0% above today's purchase price.  Global Payments is Buy rated by LSEG Stock Reports Plus and CFRA and it is top-rated as a 5-star stock by Morningstar.  In addition, Global Payments was highly ranked in my Stock Rover "Free-Cash-Flow Growers" stock screener since it passed all criteria in that screener (see chart below): 

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

•  +2.0% absolute return (equivalent to +56.8% annualized return-on-investment for the next 13 days) if the stock is assigned early (on the last business day prior to the March 9th, 2026 ex-dividend date); or  
  

• +2.4% absolute return (equivalent to +35.9% annualized return-on-investment over the next 24 days) if the stock is assigned on the March 20th, 2026 options expiration date.

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

The buy/write transaction was:
2/24/2026 Bought 400 Global Payments Inc. shares @ $78.63.
2/24/2026 Sold 4 GPN 3/20/2026 $75.00 Call options @ $5.11 per share.  The Implied Volatility of these Calls was 37.2% when this buy/write transaction occurred, which as preferred is well above the current 19.6% for the S&P 500 Volatility Index (i.e. VIX).
3/9/2026 Upcoming quarterly ex-dividend of $.25 per share.

Two possible overall performance results (including commissions) for this Global Payments Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $29,410.68
= ($78.63 - $5.11) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$2,046.68
= ($5.11 * 400 shares) - $2.68 commission
(b) Dividend Income (If Global Payments Call options exercised early on March 6th, 2026, the last trading day prior to the March 9th ex-div date): +$0.00; or
(b) Dividend Income (If GPN's stock is assigned at the March 20th, 2026 options expiration date): +$100.00
= ($.25 dividend per share x 400 shares)

(c) Capital Appreciation (If GPN's Call options assigned early on March 9th): -$1,452.00

+($75.00 strike price - $78.63 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If shares assigned at $75.00 strike price at the March 20th options expiration): -$1,452.00
+($75.00 - $78.63) * 400 shares

1. Total Net Profit [If option exercised early (last business day prior to the March 9th, 2026 ex-dividend date)]: +$594.68

= (+$2,046.68 options income + $0.00 dividend income - $1,452.00 capital appreciation); or

2. Total Net Profit (If GPN's shares assigned at $75.00 at the March 20th, 2026 expiration): +$694.68

= (+$2,046.68 options income + $100.00 dividend income - $1,452.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on the last business day prior to the March 9th, 2026 ex-dividend date]: +2.0%

= +$594.68/$29,410.68

Potential Annualized Return-on-Investment (If option exercised early): +56.8%

= (+$594.68/$29,410.68) * (365/13 days); or

2. Potential Absolute Return-on-Investment (If Global Payment's shares assigned on the March 20th options expiration date): +2.4%

= +$694.68/$29,410.68

Potential Annualized Return-on-Investment (If GPN's shares assigned at $75.00 at the March 20th, 2026 options expiration date): +35.9%

= (+$694.68/$29,410.68) * (365/24 days)

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 below, eight of the nine criteria are achieved for this Global Payments Inc. Covered Calls position.

Established Covered Calls in Expand Energy Corporation

This afternoon, a Covered Calls position at my net debit limit order price of $93.82 was executed in Expand Energy Corporation (ticker symbol EXE) when 200 shares were purchased at $101.87 and 2 March 20th, 2026 Call options were sold at $8.05 per share at the $95.00 strike price.  The buy/write net debit limit order at $93.82 had a potential time value profit of $1.18 per share [$8.05 Call options premium - ($101.87 stock purchase price - $95.00 strike price)].  

There is also an upcoming quarterly ex-dividend of $.575 per share on March 5th (at a current annual dividend yield of 2.3%), so two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment because the ex-dividend on March 5th is prior to the March 20th, 2026 options expiration date.  A deep in-the-money Covered Calls position was established with the probability of the stock closing in-the-money (and therefore being assigned) on the 3/20/2026 options expiration date was 80.0%.

Expand Energy Corporation is a major U.S. energy company formed by the 2024 merger of Chesapeake Energy Corporation and Southwestern Energy Company, creating the largest independent natural gas producer in North America.  It holds interests in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania; the Marcellus and Utica Shales in Ohio and West Virginia; and the Haynesville and Bossier Shales in Louisiana and Texas.  Expand Energy aims to deliver affordable, reliable, and lower-carbon energy while integrating sustainability and operational discipline across its business. It also targets significant cost synergies and robust financial performance, including strong production growth and dividends to shareholders. In recent developments, the company is relocating its corporate headquarters to the Houston area to align closer with global natural gas markets.

As preferred, there is no quarterly earnings report prior to the options expiration date.  LSEG Stock Reports Plus has perfect "10" ratings for both their Average Score and their Optimized Score.  The average analysts' target price is $132.35 which is +29.9% above today's stock purchase price. 

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

•  +1.3% absolute return (equivalent to +50.7% annualized return-on-investment for the next 9 days) if the stock is assigned early (on the last business day prior to the March 5th, 2026 ex-dividend date); OR 

• +1.9% absolute return (equivalent to +28.3% annualized return-on-investment over the next 24 days) if the stock is assigned on the March 20th, 2026 options expiration date.

Expand Energy Corporation (EXE) -- New Covered Calls Position

The buy/write transaction was:
2/24/2026 Bought 200 Expand Energy Corp. shares @ $101.87.
2/24/2026 Sold 2 Expand Energy 3/20/2026 $95.00 Call options @ $8.05.
Note: the Implied Volatility of the Call options was 31.8% when this buy/write transaction was executed.
3/5/2026 Upcoming quarterly ex-dividend of $.575 per share.

Two possible overall performance results (including commissions) for this Expand Energy Corporation Covered Calls position are as follows:
Covered Calls Cost Basis: $18,765.34
= ($101.87 - $8.05) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,608.66
= ($8.05 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on March 4th, the last business day prior to the March 5th, 2026 ex-dividend date): +$0.00; or
(b) Dividend Income (If Expand Energy's stock is assigned at the March 20th, 2026 options expiration date): +$115.00 = $.575 dividend per share x 200 shares

(c) Capital Appreciation (If EXE's Call options assigned early on March 4th): -$1,374.00

+($95.00 strike price - $101.87 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at the $95.00 strike price at the 3/20/2026 options expiration): -$1,374.00
+($95.00 - $101.87) * 200 shares

1. Total Net Profit [If option exercised early on the last business day prior to the March 5th ex-dividend date)]: +$234.66

= (+$1,608.66 options income + $0.00 dividend income - $1,374.00 capital appreciation); or

2. Total Net Profit (If Expand Energy Corp. shares assigned at $95.00 strike price at the March 20th, 2026 options expiration date): +$349.66

= (+$1,608.66 + $115.00 - $1,374.00)

1. Potential Absolute Return-on-Investment (If option exercised early on 3/5/2026): +1.3%

= +$234.66/$18,765.34

Potential Annualized Return-on-Investment: +50.7%

= (+$234.66/$18,765.34) * (365/9 days); or

2. Potential Absolute Return-on-Investment (If Expand Energy's shares assigned at $95.00 at the March 20th, 2026 options expiration): +1.9%

= +$349.66/$18,765.34

Potential Annualized Return-on-Investment (If Expand Energy's shares assigned at the March 20th, 2026 options expiration date): +28.3%

= (+$349.66/$18,765.34) * (365/24 days)

Closed Covered Call Position in Microsoft Corporation

On the February 13th, 2026 options expiration date, the Covered Call position in Microsoft Corporation (ticker MSFT) closed out-of-the-money, so its Call option expired and the 100 shares remained in the Covered Calls Advisor Portfolio. Early in today's trading session I closed out this position at a net loss of $2,053.67 by selling the 100 shares of Microsoft at $393.46.  Along with other companies in the software industry, Microsoft has continued a steady stock price decline during the past 4 months. The transactions history for this position and the associated return-on-investment results are detailed below.

Microsoft Corporation (MSFT) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
1/29/2026 Bought 100 shares of Microsoft stock @ $427.80 per share.  
1/29/2026 Sold 1 MSFT February 13th, 2026 $425.00 Call option @ $12.90 per share.  The Implied Volatility of the Call was 33.2 when this transaction was executed.

2/13/2026 The Call option expired out-of-the-money and 100 Microsoft shares remain in the Covered Calls Advisor Portfolio.
2/19/2026 Ex-dividend income at $.91 per share.

2/23/2026 Closed out this Covered Call position by selling the 100 Microsoft shares at $393.46.

The overall performance result (including commissions) for this position is as follows:
Microsoft Covered Call Net Investment: $41,490.67
= ($427.80 - $12.90) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,289.33
= ($12.90 * 100 shares) - $.67 commission
(b) Dividend Income: +$91.00 = $.91 per share x 100 MSFT shares
(c) Capital Appreciation (Microsoft stock sold at $393.46): -$3,434.00
= ($393.46 - $427.80) * 100 shares

Total Net Loss: -$2,053.67
= (+$1,289.33 option income + $91.00 dividend income - $3,434.00 capital appreciation)

Absolute Return-on-Investment: -4.9%
= -$2,053.67/$41,490.67

Equivalent Annualized-Return-on-Investment: -72.3%
= (-$2,053.67/$41,490.67) * (365/25 days)

February 20th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with February 20th, 2026 options expirations and all four positions (Las Vegas Sands Corporation, NVIDIA Corporation, Sea Limitied ADR, and Universal Health Services Inc.) closed with their stock prices in-the-money.  So, their Calls expired with no remaining value and the Covered Calls were closed out by the stocks being sold at their respective strike prices on their Feb. 20th options expiration date. The return-on-investment details (in alphabetical order) for each position is as follows:

1. Las Vegas Sands Corporation (LVS) -- +1.6% absolute return-on-investment (equivalent to +58.5% annualized return-on-investment) for the 10 days of this investment.  This Las Vegas Sands Covered Calls position had a $55.00 strike price and it closed at $58.01 yesterday.  The original blog post showing the details of this position is here. 

3. Nvidia Corporation (NVDA) -- +2.8% absolute return-on-investment (equivalent to +63.9% annualized return-on-investment) for the 16 days of this investment.  This NVIDIA position had a $172.50 strike price and it closed at $189.95 yesterday.  The original blog post showing the details of this position is here. 

3. Sea Limited ADR (SE) -- -4.3% absolute return-on-investment (equivalent to -19.4% annualized return-on-investment) for the 81 days of this investment.  This Sea Ltd. position had a $110.00 strike price and it closed at $115.20 yesterday.  The most recent blog post showing the details of this position is here.

4. Universal Health Services Inc. (UHS) -- +2.7% absolute return-on-investment (equivalent to +18.9% annualized return-on-investment) for the 52 days of this investment.  This Universal Health Services position had a $220.00 strike price and it closed at $230.49 yesterday.  The most recent blog post showing the details of this position is here.

I look forward to receiving your emails with your questions/comments 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 Newmont Corporation

This morning at 11:25 a.m. ET, a short-term Covered Calls position at my net debit limit order was executed in Newmont Corporation (ticker symbol NEM) when 200 shares were purchased at $120.25 and 2 March 6th, 2026 Call options were sold at $7.84 per share at the $115.00 strike price.  The buy/write net debit limit order at $112.41 was executed, so the potential time value profit was $2.59 per share [$7.84 Call options premium - ($120.25 stock purchase price - $115.00 strike price)]. 

There is also an upcoming quarterly ex-dividend of $.26 per share on March 3rd (at a current annual dividend yield of 0.9%), so two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment because the ex-dividend on March 3rd is prior to the March 6th, 2026 options expiration date.  An in-the-money Covered Calls position was established when the probability of the stock closing in-the-money (and therefore being assigned) on the 3/6/2026 options expiration date was 66.6%.  

As preferred, there is no quarterly earnings report prior to the options expiration date.  CFRA has a Strong Buy rating and LSEG has a Buy rating with their Average Score of 9 and Optimized Score of 10 (on a scale of 1 to 10).  It also appeared on my Key Metrics for Comparing Companies stock screener by passing all criteria therein.  

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

•  +2.3% absolute return (equivalent to +76.2% annualized return-on-investment for the next 11 days) if the stock is assigned early (on the last business day prior to the March 3rd, 2026 ex-dividend date); OR 

• +2.6% absolute return (equivalent to +68.0% annualized return-on-investment over the next 14 days) if the stock is assigned on the March 6th, 2026 options expiration date.
  

Newmont Corporation (NEM) -- New Covered Calls Position
The buy/write transaction was:
2/20/2026 Bought 200 Newmont Corp shares @ $120.25.
2/20/2026 Sold 2 Newmont 3/6/2026 $115.00 Call options @ $7.84.
Note: the Implied Volatility of the Call options was 48.3% when this buy/write transaction was executed.
3/3/2026 Upcoming quarterly ex-dividend of $.26 per share.

Two possible overall performance results (including commissions) for this Newmont Corporation Covered Calls position are as follows:
Covered Calls Cost Basis: $22,483.34
= ($120.25 - $7.84) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,566.66
= ($7.84 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on March 2nd, the last business day prior to the March 3rd ex-dividend date): +$0.00; or
(b) Dividend Income (If Newmont stock assigned at the March 6th, 2026 options expiration date): +$52.00 = $.26 dividend per share x 200 shares

(c) Capital Appreciation (If Newmont Call options assigned early on March 3rd): -$1,050.00

+($115.00 strike price - $120.25 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at the $115.00 strike price at the 3/6/2026 options expiration): -$1,050.00
+($115.00 - $120.25) * 200 shares

1. Total Net Profit [If option exercised early on the last business day prior to the March 3rd ex-dividend date)]: +$516.66

= (+$1,566.66 options income + $0.00 dividend income - $1,050.00 capital appreciation); or

2. Total Net Profit (If Newmont Corp. shares assigned at $115.00 strike price at the March 6th, 2026 expiration): +$568.66

= (+$1,566.66 + $52.00 - $1,050.00)

1. Potential Absolute Return-on-Investment (If option exercised early on 3/3/2026): +2.3%

= +$516.66/$22,483.34

Potential Annualized Return-on-Investment: +76.2%

= (+$516.66/$22,483.34) * (365/11 days); or

2. Potential Absolute Return-on-Investment (If Newmont shares assigned at $115.00 at the March 6th, 2026 options expiration): +2.6%

= +$568.66/$22,483.34

Potential Annualized Return-on-Investment (If Newmont shares assigned at the March 3rd, 2026 options expiration date): +68.0%

= (+$568.66/$22,483.34) * (365/14 days)

Covered Calls Established in Bank of America Corporation

Early in this morning's trading session, a Covered Calls position was established in Bank of America Corp. (ticker BAC) with the purchase of 500 shares at $51.91 per share and five March 13th, 2026 Call options were sold for $2.61 per share at the $50.00 strike price.  This Bank of America transaction occurred via a simultaneous buy/write transaction at my net debit limit order price of $49.30 per share.  The corresponding time value (aka extrinsic value) in the Call options was $.70 per share = [$2.61 Call options premium received - ($51.91 stock purchase price - $50.00 options strike price)].  A moderately 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 68.8%.  As preferred, the next earnings report on April 15th, 2026 is after the March 13th options expiration date. 

Bank of America goes ex-dividend at $.28 per share (2.2% annualized dividend yield at the current stock price) on March 6th, 2026 which is prior to the March 13th options expiration date, so this dividend is included in the potential return-on-investment results shown below.  As shown at the bottom of this post, all nine criteria in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (explained here) were met for this position.  

Most companies in the Financial Sector provide only modest growth prospects, but they often provide good annual dividend yields.  Consequently, the Covered Calls Advisor targets opportunities to use the Dividend Capture Strategy in all Financial Sector Covered Calls positions.  This new March 13th, 2026 Bank of America Covered Calls position continues the Dividend Capture Strategy of often selling in-the-money monthly Covered Calls for one of six megacap U.S. banks (Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo) for each options expiration month:
(JPMorgan Chase quarterly for Jan, Apr, July, and Oct options expirations;
Citigroup, Morgan Stanley, and/or Wells Fargo for Feb, May, Aug, and Nov options expirations; and Bank of America and/or Goldman Sachs for Mar, Jun, Sep, and Dec options expirations). 

The goal of these monthly Covered Calls in these banks is to both provide an opportunity to either: (1) potentially capture the quarterly dividend payment and if the stock price remains above the strike price at options expiration, the maximum possible return-on-investment result on the options expiration date for the position would be achieved; or (2) have the stock assigned early on the day prior to the ex-dividend date in which case the annualized return-on-investment for early assignment is often greater than that of an assignment on the options expiration date (which is true for this BAC Covered Calls position).  So far, applying this Dividend Capture Strategy has provided attractive annualized return results -- significantly better than would be achieved if Covered Calls positions for these bank stocks were held in the Covered Calls Advisor Portfolio in the other two months each quarter when an ex-dividend date does not occur.  

These returns also show that a significantly greater return-on-investment potential is available by establishing Covered Calls with intervening ex-dividends instead of establishing their comparable 100% Cash-Secured Puts positions since Covered Calls expiring on the options expiration date capture the dividend payment whereas selling Puts does not. 

The current average analysts' target price for Bank of America is $60.96 (+17.4% above today's stock purchase price).  BofA also appeared today on my Financial Sector stock screener by passing all criteria as shown in this table:

Two potential return-on-investment results for this Bank of America Covered Calls position are: (a) +1.4% absolute return-on-investment (equivalent to +36.7% annualized return-on-investment for the next 14 days) in the event that the stock is assigned early [i.e. on March 5th which is the last trading day prior to the March 6th ex-dividend date]; OR (b) +2.0% absolute return-on-investment (equivalent to +34.3% annualized return-on-investment over the next 21 days) if the stock is assigned on the March 13th, 2026 options expiration date. 

Bank of America Corporation (BAC) -- New Covered Calls Position

The buy/write transaction was as follows:
2/20/2026 Bought 500 shares of Bank of America Corp. stock @ $51.91 per share 
2/20/2026 Sold 5 BAC March 13th, 2026 $50.00 Call options @ $2.61 per share
Note: The Implied Volatility of these Calls was 30.2 when this position was established.
3/6/2026 Upcoming ex-dividend of $.28 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Calls Cost Basis: $24,653.35
= ($51.91 - $2.61) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,301.65
= ($2.61 * 500 shares) - $3.35 commission
(b) Dividend Income (If BAC shares assigned on 3/5/2026, the last business day prior to the 3/6/2026 ex-dividend date): = +$0.00; or
(b) Dividend Income (If BAC shares assigned at the 3/13/2026 options expiration date): +$140.00
= $.28 per share x 500 shares
(c) Capital Appreciation (If BAC shares assigned early on 3/5/2026): -$955.00
= ($50.00 strike price - $51.91 stock purchase price) * 500 shares; or
(c) Capital Appreciation (If shares above $50.00 strike price at the March 13th options expiration): -$955.00
= ($50.00 - $51.91) * 500 shares

1. Potential Net Profit (If Bank of America shares assigned on 3/5/2026, the day prior to the 3/6/2026 ex-dividend date): +$346.65
= (+$1,301.65 options income + $0.00 dividend income - $955.00 capital appreciation)
2. Potential Net Profit (If BAC price is above the $50.00 strike price at the March 13th options expiration): +$486.65
= (+$1,301.65 options income + $140.00 dividend income - $955.00 capital appreciation)

1. Absolute Return (If BAC shares assigned on 3/5/2026, the day prior to the March 6th ex-dividend date): +1.4%
= +$346.65/$24,653.35
Equivalent Annualized Return (If assigned early on day prior to ex-div date): +36.7%
= (+$346.65/$24,653.35) * (365/14 days)

2. Absolute Return (If BAC price is above $50.00 strike price at the March 13th options expiration): +2.0%
= +$486.65/$24,653.35
Equivalent Annualized Return (If assigned on the 3/13/2026 options expiration date): +34.3%
= (+$486.65/$24,653.35) * (365/21 days)

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 below, all nine criteria are achieved for this Bank of America Covered Calls position.

Covered Call Position Established in The Cigna Group

This afternoon a Covered Call position was established in The Cigna Group (ticker symbol CI) using my Dividend Capture Strategy (see post describing this strategy here).  One hundred Cigna shares were purchased at $287.06 and one March 13th, 2026 Call option was sold for $15.56 per share at the $275.00 strike price.  The buy/write net debit limit order at $271.50 was executed, so the potential time value profit is $3.50 per share [$15.56 Call option premium - ($287.06 stock purchase price - $275.00 strike price)].  There is an upcoming quarterly ex-dividend of $1.56 (annual dividend yield of 2.2%) on March 5th, so the potential return-on-investment results detailed below for this position includes this dividend income.    

As preferred by the Covered Calls Advisor, Cigna's next quarterly earnings report on May 7th, 2026 will be after the March 13th options expiration date.  Given the Covered Calls Advisor's current Overall Market Meter indicator of Neutral, an in-the-money Covered Call position was established with the probability the stock is in-the-money on the options expiration date was 72.3%.

Cigna is rated 10 Average Score and 9 Optimized Score by LSEG Stock Reports Plus and the average analysts' target price is 337.30 (+17.5% above today's stock purchase price).  Cigna also appeared today on my Key Metrics for Comparing Companies stock screener by passing all criteria shown in this table:

As detailed below, two potential return-on-investment results are: (1) +1.3% absolute return-on-investment (equivalent to +33.5% annualized return-on-investment over the next 14 days) if the stock is assigned on the day prior to the March 5th ex-dividend date; or (2) +1.9% absolute return-on-investment (equivalent to +30.9% annualized return-on-investment over the next 22 days) if the stock is assigned on the March 13th, 2026 options expiration date.

The Cigna Group (CI) -- New Covered Call Position
The buy/write transaction today was as follows:
2/19/2026 Bought 100 Cigna Group shares @ $287.06
2/19/2026 Sold 1 Cigna 3/13/2026 $275.00 Call option @ $15.56 per share.  
3/5/2026 Upcoming quarterly ex-dividend of $1.56 per share

Two potential overall performance results (including commissions) for this Cigna Covered Call position are as follows:
Covered Call Cost Basis: $27,150.67
= ($287.06 - $15.56) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,555.33
= ($15.56 * 100 shares) - $.67 commissions
(b) Dividend Income (If Cigna shares assigned on the day prior to the March 5th ex-dividend date): +$0.00
(b) Dividend Income (If Cigna shares assigned at the March 13th, 2026 options expiration date): +$156.00
= ($1.56 dividend per share x 100 shares)

(c) Capital Appreciation (If Cigna shares assigned on the day prior to the March 6th ex-dividend date): -$1,206.00

+($275.00 strike price - $287.06 stock purchase price) * 100 shares

(c) Capital Appreciation (If Cigna shares assigned at the $275.00 strike price at options expiration): -$1,206.00
+($275.00 - $287.06) * 100 shares

1. Total Net Profit (If Cigna shares assigned on the day prior to the March 5th ex-dividend date): +$349.33

= (+$1,555.33 option income + $0.00 dividend income - $1,206.00 capital appreciation)

2. Total Net Profit (If Cigna shares assigned at the March 13th, 2026 options expiration date): +$505.33

= (+$1,555.33 option income + $156.00 dividend income - $1,206.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If Cigna shares assigned on the day prior to the March 5th ex-dividend date) : +1.3%

= +$349.33/$27,150.67

Potential Annualized Return-on-Investment: +33.5%

= (+$349.33/$27,150.67) *(365/14 days)

2. Potential Absolute Return-on-Investment (If Cigna shares assigned at the March 13th, 2026 options expiration date): +1.9%

= +$505.33/$27,150.67

Potential Annualized Return-on-Investment: +30.9%

= (+$505.33/$27,150.67) *(365/22 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position.  As shown below with this Cigna Group position, all nine criteria are met.

Covered Call Established in Boeing Company

This afternoon, a Covered Call position was established in Boeing Company (ticker symbol BA) when the Covered Calls Advisor's buy/write limit order was executed -- 100 shares were purchased at $234.24 and one March 6th, 2026 Call option was sold at $12.36 per share at the $225.00 strike price.  Therefore, a net debit price of $221.88 which is a time value of $3.12 per share [$12.36 Call option price - ($234.24 stock price - $225.00 strike price)].  This is a moderately in-the-money position since its probability of closing in-the-money on the 3/6/2026 options expiration date was 70.5% when this position was established.  Also, as I prefer, there is no intervening quarterly earnings report since Boeing's next quarterly earnings report on April 22nd, 2026 is after this position's March 6th, 2026 options expiration date.

  

Boeing remains one of the world's duopoly companies (along with Airbus) in the commercial airline industry and is also a top 5 U.S. Defense contractor.  The company has struggled greatly in recent years from a series of aircraft groundings and mismanagement which included 6 consecutive years of negative earnings per share.  But under the new and capable leadership of CEO Kelly Ortberg for the past one and half years, Boeing is now inflecting back to profitability.    

Key Bullish Catalysts are: (1) Production Ramp-Up: Following the FAA's lifting of production caps in late 2025, Boeing is ramping the 737 MAX toward a target of 47 jets per month by summer 2026. Additionally, 787 Dreamliner production is slated to reach 10 per month during 2026.  (2) Financial Recovery: Analysts project 2026 as the first year of sustainably positive free cash flow (estimated in the low-single-digit billions) since the MAX crisis. Revenue is expected to reach approximately $96 billion with potential earnings of $2.34 to $3.00 per share. (3) Massive Backlog: Boeing holds a total backlog of over $636 billion, including firm orders for more than 5,900 commercial airplanes. In January 2026, Boeing outperformed Airbus in both deliveries (46) and net new orders (103). (4) Strategic Integration: The late-2025 acquisition of Spirit AeroSystems allows Boeing to bring critical fuselage manufacturing back in-house, aimed at ensuring tighter quality control and reducing supply chain friction. (5) Defense Growth: A projected increase in U.S. defense spending (potentially to $1.5 trillion) is expected to benefit Boeing’s Defense, Space & Security unit, which saw revenue rise to $6.9 billion in Q3 2025.

Boeing is included in Bank of America's US1 List for 2026.  The average target price of Wall Street analysts covering Boeing is +16.3% above today's $234.24 stock purchase price.  Significant stock price upside potential also depends on the successful certification of the 737 MAX 7 and MAX 10 variants in 2026, as well as flight test progress for the 777X. 

As detailed below, a potential return-on-investment result is +1.4% absolute return (equivalent to +34.1% annualized return-on-investment for the next 15 days) if the stock is in-the-money and therefore assigned on the March 6th, 2026 options expiration date.

Boeing Co. (BA) -- New Covered Call Position

The buy/write transaction was as follows:
2/19/2026 Bought 100 shares of Boeing Co. stock @ $234.24 per share.  
2/19/2026 Sold 1 Boeing March 6th, 2026 $225.00 Call option @ $12.36 per share.  The Implied Volatility of this Call option was 34.4 when this position was established.

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $22,188.67
= ($234.24 - $12.36) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,235.33
= ($12.36 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If BA stock is above the $225.00 strike price at the March 6th, 2026 expiration): -$924.00
= ($225.00 strike price - $234.24 stock purchase price) * 100 shares

Potential Total Net Profit: +$311.33
= (+$1,235.33 Call option income + $0.00 dividend income - $924.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.4%
= +$311.33/$22,188.67
Potential Equivalent Annualized Return-on-Investment: +34.1%
= (+$311.33/$22,188.67) * (365/15 days)

Established Covered Calls in Delta Air Lines Inc.

This morning, a buy/write limit order was entered in Delta Air Lines Inc. (ticker DAL) to buy 400 shares and simultaneously sell 4 Call options at the March 6th, 2026 weekly options expiration date and at the $65.00 strike price. The net debit limit price for my order was $64.08 and this order was executed with 400 shares purchased at $70.07 and 4 March 6th, 2026 Call options sold for $5.99 per share.  Therefore, a maximum potential time value profit of $.92 per share = [$5.99 options premium - ($70.07 stock price - $65.00 strike price)] is available for this position.  This in-the-money Covered Calls position has a probability of 75.8% of being in-the-money (i.e. above the $65.00 strike price) on the March 6th options expiration date.   

This position uses the Covered Calls Advisor's Dividend Capture Strategy (see here) since Delta has an upcoming quarterly ex-dividend of $.188 per share (a 1.1% annual dividend yield) on February 26th, 2026 which is prior to the March 6th options expiration date.  This dividend is included in the detailed return-on-investment calculations below.  Either an early assignment on the last trading day prior to the ex-dividend date or on the March 6th options expiration date would be desirable to the Covered Calls Advisor given the potential annualized return on investments for either outcome.  Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on April 8th, 2026 is after the March 6th, 2026 options expiration date.

As shown on the table at the bottom of this post, all nine criteria of the Dividend Capture Strategy are met with this position.  Even if the Delta Air Lines Inc. stock price declines somewhat during the next 17 days until the options expiration date, if the stock closes above the $65.00 strike price, then a satisfactory annualized-return-on-investment of +36.9% will be achieved.  

The average Target Price of the analysts covering Delta Air Lines is +17.2% above today's purchase price.  A primary reason for establishing this position was that Delta was highly ranked in my Stock Rover "Quality+Value+Growth" stock screener since all 21 criteria in that screener are currently achieved by Delta (see chart below): 

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

•  +1.4% absolute return (equivalent to +57.8% annualized return-on-investment for the next 9 days) if the stock is assigned early (on the last business day prior to the February 26th, 2026 ex-dividend date); or  
  

• +1.7% absolute return (equivalent to +36.9% annualized return-on-investment over the next 17 days) if the stock is assigned on the March 6th, 2026 options expiration date.

Delta Air Lines Inc. (DAL) -- New Covered Calls Position
The buy/write transaction was:
2/17/2026 Bought 400 Delta Air Lines Inc. shares @ $70.07.
2/17/2026 Sold 4 Delta 3/6/2026 $65.00 Call options @ $5.99 per share.  The Implied Volatility of these Calls was 44.5% when this buy/write transaction occurred, which as preferred is well above the current 20.8% for the S&P 500 Volatility Index (i.e. VIX).
2/26/2026 Upcoming quarterly ex-dividend of $.188 per share.

Two possible overall performance results (including commissions) for this Delta Air Lines Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $25,634.68
= ($70.07 - $5.99) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$2,393.32
= ($5.99 * 400 shares) - $2.68 commission
(b) Dividend Income (If Delta Air Lines Call options exercised early on Feb. 25, 2026, the last business day prior to the Feb. 26th ex-div date): +$0.00; or
(b) Dividend Income (If Delta stock assigned at the March 6th, 2026 options expiration date): +$75.20
= ($.188 dividend per share x 400 shares)

(c) Capital Appreciation (If Delta's Call options assigned early on Feb. 26th): -$2,028.00

+($65.00 strike price - $70.07 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If shares assigned at $65.00 strike price at the March 6th options expiration): -$2,028.00
+($65.00 - $70.07) * 400 shares

1. Total Net Profit [If option exercised early (business day prior to the February 26th, 2026 ex-dividend date)]: +$365.32

= (+$2,393.32 options income + $0.00 dividend income - $2,028.00 capital appreciation); or

2. Total Net Profit (If Delta's shares assigned at $65.00 at the March 6th, 2026 expiration): +$440.52

= (+$2,393.32 options income + $75.20 dividend income - $2,028.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to ex-dividend date]: +1.4%

= +$365.32/$25,634.68

Potential Annualized Return-on-Investment (If option exercised early): +57.8%

= (+$365.32/$25,634.68) * (365/9 days); or

2. Potential Absolute Return-on-Investment (If Delta's shares assigned on the March 6th options expiration date): +1.7%

= +$440.52/$25,634.68

Potential Annualized Return-on-Investment (If Delta's shares assigned at $65.00 at the March 6th, 2026 expiration): +36.9%

= (+$440.52/$25,634.68) * (365/17 days)

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 below, all nine criteria are achieved for this Delta Air Lines Inc. Covered Calls position.

February 13th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had five Covered Calls positions with February 13th, 2026 options expiration dates.  Three positions (D.R. Horton Inc., Lowe's Companies Inc., and NVIDIA Corporation), closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  Two positions in KraneShares CSI China Internet ETF and Microsoft Corporation closed out-of-the-money so their Call options 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. D.R. Horton Inc. (AMZN) -- +2.3% absolute return (equivalent to +46.1% annualized return-on-investment) for the 18 days of this investment.  This Covered Calls position was assigned at the $145.00 strike price since the stock closed in-the-money at $167.78 per share.  The original blog post detailing this Covered Calls position is here. 

2. KraneShares CSI China Internet ETF (KWEB) -- This Covered Calls position closed yesterday at $32.79 which was below its $34.50 strike price, so the five Call options expired and 500 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 Call options against the 500 KWEB shares currently held or close out the position by selling these shares. 

3. Lowe's Companies Inc. (LOW) -- +   1.2% absolute return (equivalent to +16.3% annualized return-on-investment) for the 28 days of this investment.  This Covered Call position was assigned at the $265.00 strike price since the stock closed in-the-money at $287.39 per share.  The most recent blog post detailing this Covered Call position is here.    

4. Microsoft Corporation (MSFT) -- This Covered Call position closed yesterday at $401.32 which was well below its $425.00 strike price, so the one Call option expired and 100 Microsoft 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 Call position by selling a Call option against the 100 Microsoft shares currently held or close out the position by selling these shares. 

5. NVIDIA Corporation (NVDA) -- +2.3% absolute return (equivalent to +57.1% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $182.50 strike price since the stock closed slightly in-the-money at $182.81 per share.  The most recent blog post detailing this Covered Call position is here.    

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

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Call Position Established in Amazon.com Inc.

Early in this morning's trading session, my buy/write net debit limit order was executed at a price of $188.90 when 100 shares of Amazon.com Inc. (ticker symbol AMZN) stock was purchased at $197.77 and 1 February 27th, 2026 $192.50 Call option was sold at $8.87 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 $3.60 per share [$8.87 Call option premium - ($197.77 stock purchase price - $192.50 strike price)].  The probability that this Amazon Call option will be above the $192.50 strike price on the 2/27/2026 options expiration date when this Covered Call position was established was 64.9%.

The average target price of the analysts covering Amazon.com stock is $285.95 (+44.6% above today's stock purchase price).  Amazon.com also passed all criteria in my customized "Quality+Growth" stock screener as detailed in the chart below:

As detailed below, a potential return-on-investment result is +1.9% absolute return-on-investment (equivalent to +49.6% annualized return-on-investment for the next 14 days) if Amazon's share price is in-the-money (i.e. above the $192.50 strike price) and therefore assigned on its February 27th, 2026 options expiration date.  

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

The net debit buy/write limit order was executed as follows:
2/13/2026 Bought 100 shares of Amazon.com stock @ $197.77 per share.  
2/13/2026 Sold 1 AMZN February 27th, 2026 $192.50 Call option @ $8.87 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Call was 36.6 when this position was established which, as preferred, is well above the current VIX of 20.6.  

A possible overall performance result (including commissions) if this position is assigned on its 2/27/2026 options expiration date is as follows:
Covered Call Net Investment: $18,890.67
= ($197.77 - $8.87) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$886.33
= ($8.87 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Amazon.com stock is above the $192.50 strike price at the February 27th, 2026 options expiration date): -$527.00
= ($192.50 strike price - $197.77 stock purchase price) * 100 shares

Total Net Profit Potential (If assigned at the $192.50 strike price on the Feb. 27th, 2026 options expiration date): +$359.33
= (+$886.33 options income + $0.00 dividend income - $527.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.9%
= +$359.33/$18,890.67
Potential Equivalent Annualized-Return-on-Investment: +49.6%
= (+$359.33/$18,890.67) * (365/14 days)

Established Covered Calls in Las Vegas Sands Corporation

This morning a short-term Covered Calls position was established in Las Vegas Sands Corporation (ticker LVS). Three hundred shares were purchased at $56.50 and three February 20th, 2026 monthly Call options were sold at the $55.00 strike price at $2.36 per share--a buy/write net debit transaction of $54.14 per share which provides a $.86 per share time value profit potential.  

Las Vegas Sands was one of only 37 companies that passed all criteria in my "Key Metrics for Comparing Companies" stock screener, which places it in the top 1.4% of the 2,643 major U.S. companies considered in this stock screener.  The average target price of the 18 analysts following Las Vegas Sands Corp. is $69.36 which is +22.7% above today's stock purchase price.  The stock screener criteria and the actual numbers for LVS are shown in the filter breakdown in the table below:

As detailed below, a potential return-on-investment result is +1.6% absolute return-on-investment (equivalent to +58.5% annualized return-on-investment for the next 10 days) if the Las Vegas Sands Corporation share price is in-the-money (i.e. above the $55.00 strike price) and therefore assigned on its February 20th, 2026 options expiration date.

 
Las Vegas Sands Corporation (LVS) -- New Covered Calls Position 

The Buy/Write transaction was as follows:
2/10/2026 Bought 300 shares of Las Vegas Sands Corporation @ $56.50 per share.  
2/10/2026 Sold 3 LVS February 20th, 2026 $55.00 Call options @ $2.36 per share.  The Implied Volatility of these Call options was 42.6 and the probability that the Calls will expire in-the-money on the options expiration date was 63.0% when this transaction was executed today. 

A possible overall performance result (including commissions) for this Las Vegas Sands Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $15,974.01
= ($56.50 - $2.36) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$705.99
= ($2.36 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Las Vegas Sands Corporation shares assigned at $55.00 strike price at expiration): -$450.00
+($55.00 - $56.50) * 300 shares

Total Net Profit Potential (If 300 Las Vegas Sands shares assigned at $55.00 strike price at expiration): +$255.99
= (+$705.99 options income +$0.00 dividend income -$450.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.6%
= +$255.99/$15,974.01
Potential Annualized Return-on-Investment: +58.5%
= (+$255.99/$15,974.01) * (365/10 days)

Covered Call Position Established in RTX Corporation

Today a Covered Call position was established in RTX Corporation (ticker symbol RTX). In early 2020, Raytheon merged with United Technologies (after they spun-out their Carrier and Otis Elevators divisions) making the new Raytheon a very strong company with approximately equal parts defense and commercial business revenues.  Three years ago, they changed their corporate name to RTX Corporation. 

RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers by designing, developing, and providing advanced capabilities in integrated air and missile defense, smart weapons, and missiles.

My net debit buy/write limit order was executed when 100 shares were purchased at $198.01 and 1 February 27th, 2026 weekly Call option was sold at $6.37 per share at the $195.00 strike price.  The time value (aka extrinsic value) in the Call option was $3.36 per share [$6.37 Call option premium - ($198.01 stock price - $195.00 strike price)] when this transaction executed.  There is also an upcoming ex-dividend on Feb. 20th at $.68 per share (7.9% above last year's dividend rate for the same quarter).  Two potential return-on-investment results for this position are detailed below and include the possibility of early exercise since the ex-dividend is prior to the February 27th, 2026 options expiration date.  Given my current Overall Market Meter outlook of Neutral, a slightly in-the-money Covered Call position was established and the probability that the Call will remain in-the-money on the options expiration date was 58.8% when this transaction occurred.  Important to the Covered Calls Advisor, RTX reported their Q2 2025 earnings report two weeks ago, so there is no intervening earnings report prior to the February 27th options expiration date.  

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

•  +1.7% absolute return (equivalent to +58.1% annualized return-on-investment for the next 11 days) if the stock is assigned early (on the last business day prior to the February 20th ex-dividend date); OR 

• +2.1% absolute return (equivalent to +42.7% annualized return-on-investment over the next 18 days) if the stock is assigned on the February 27th options expiration date.

RTX Corporation (RTX) -- New Covered Call Position

The buy/write transaction was:
2/9/2026 Bought 100 RTX shares @ $198.01
2/9/2026 Sold 1 RTX 2/27/2026 $195.00 Call option @ $6.37 per share
2/20/2026 Upcoming quarterly ex-dividend of $.68 per share

Two possible overall performance results (including commissions) for this RTX Corp. Covered Call position are as follows:
RTX Covered Call Cost Basis: $19,164.67
= ($198.01 - $6.37) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$636.33
= ($6.37 * 100 shares) - $.67 option income
(b) Dividend Income (If option exercised early on Feb. 19th, 2026, the last trading day prior to the February 20th ex-div date): +$0.00; or
(b) Dividend Income (If RTX stock assigned on the February 27th, 2026 options expiration date): +$68.00
= ($.68 dividend per share x 100 shares)
(c) Capital Appreciation (If RTX Call option assigned early on Feb. 19th): -$301.00
+($195.00 strike price - $198.01 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $195.00 strike price at options expiration): -$301.00
+($195.00 - $198.01) * 100 shares

1. Total Net Profit [If option exercised on Feb. 19th (last business day prior to the Feb. 20th ex-dividend date)]: +$335.33

= (+$636.33 options income + $0.00 dividend income - $301.00 capital appreciation); or

2. Total Net Profit (If RTX shares assigned at $195.00 strike price at the Feb. 27th, 2026 options expiration date): +$403.33

= (+$636.33 + $68.00 - $301.00)

1. Absolute Return (If option exercised early): +1.7%

= +$335.33/$19,164.67

Annualized Return-on-Investment (If option exercised early): +58.1%

= (+$335.33/$19,164.67) * (365/11 days); or

2. Absolute Return (If RTX shares assigned at the $195.00 strike price at the Feb. 27th, 2026 options expiration date): +2.1%

= +$403.33/$19,164.67

Annualized Return-on-Investment (If RTX shares assigned at the $195.00 at the 2/27/2026 options expiration date): +42.7%

= (+$403.33/$19,164.67) x (365/18 days)

These return-on-investment results will be achieved as long as the stock is above the $195.00 strike price on the options expiration date.  If the stock declines below the strike price, the breakeven price of $190.96 ($198.01 stock purchase price - $6.37 option income - $.68 dividend income) provides 3.6% 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 must be 'YES' prior to establishing a position.  As shown below with this RTX Corporation position, all nine criteria were met.