Established Covered Call in NVIDIA Corporation

An in-the-money Covered Call position was established early in this morning's trading session in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $167.79 was executed by simultaneously purchasing one hundred shares at $178.19 and selling one February 20th, 2026 Call option at the $172.50 strike price at $10.40 per share, which provides a $4.71 per share = [$10.40 Call option premium received - ($178.19 stock purchase price - $172.50 option strike price)] time value profit potential.  This new position continues my recent practice of having a NVIDIA Covered Call position expiring each week.  An in-the-money Covered Call position was established for this new position with the probability that NVIDIA's stock will close in-the-money on the 2/20/2026 options expiration date was 61.8% when this transaction was executed.  As I prefer, the next earnings report on February 25th, 2026 is after the February 20th, 2026 options expiration date. 

As detailed below, a potential return-on-investment result is +2.8% absolute return-on-investment (equivalent to +63.9% annualized return-on-investment for the next 16 days) if NVIDIA's share price is in-the-money (i.e. above the $172.50 strike price) and therefore assigned on its February 20th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
2/4/2026 Bought 100 NVIDIA Corporation shares at $178.19.

2/4/2026 Sold 1 NVIDIA 2/20/2026 $172.50 Call option @ $10.40 per share.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $16,779.67
= ($178.19 - $10.40) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,039.33
= ($10.40 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $172.50 strike price at expiration): -$569.00
+($172.50 strike price - $178.19 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $172.50 strike price at the options expiration date): +$470.33
= (+$1,039.33 option income + $0.00 dividend income - $569.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.8%
= +$470.33/$16,779.67
Potential Annualized Return-on-Investment: +63.9%
= (+$470.33/$16,779.67) * (365/16 days)