Established Covered Call in Palo Alto Networks Inc.

A Covered Call position was established this afternoon in Palo Alto Networks Inc. (ticker PANW).  My net buy/write limit order at $181.96 was executed by simultaneously purchasing one hundred shares at $189.28 and selling one January 30th, 2026 Call option at the $185.00 strike price at $7.32 per share, which provides a $3.04 per share = [$7.32 Call option premium received - ($189.28 stock purchase price - $185.00 option strike price)] time value profit potential.  A moderately in-the-money Covered Call position was established for this new position with the probability that Palo Alto's stock will close in-the-money on the 1/30/2026 options expiration date was 63.8% when this transaction was executed.  As I prefer, the next earnings report on February 12th, 2026 is after the January 30th, 2026 options expiration date. 

As detailed below, a potential return-on-investment result is +1.7% absolute return-on-investment (equivalent to +40.6% annualized return-on-investment for the next 15 days) if Palo Alto's share price is in-the-money (i.e. above the $185.00 strike price) and therefore assigned on its January 30th, 2026 options expiration date.  

Palo Alto Networks Inc. (PANW) -- New Covered Call Position

Today's buy/write net debit limit order transaction was as follows:
1/15/2026 Bought 100 Palo Alto Networks shares at $189.28.

1/15/2026 Sold 1 Palo Alto Networks 1/30/2026 $188.00 Call option @ $7.32 per share. The Implied Volatility of this Call option was 31.5 when this position was established. 

A possible overall performance result (including commissions) for this Palo Alto Networks Covered Call position is as follows:
Covered Call Net Investment: $18,196.67
= ($189.28 - $7.32) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$731.33
= ($7.32 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 Palo Alto shares assigned at the $185.00 strike price at expiration): -$428.00
+($185.00 strike price - $189.28 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 Palo Alto Networks shares are in-the-money and therefore assigned at the $185.00 strike price at the options expiration date): +$303.33
= (+$731.33 option income + $0.00 dividend income - $428.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.7%
= +$303.33/$18,196.67
Potential Annualized Return-on-Investment: +40.6%
= (+$037.33/$18,196.67) * (365/15 days)