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
(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)
