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)