Established Covered Call Position in Cardinal Health Inc.

I established a Covered Call net-debit limit order this morning in Cardinal Health (ticker CAH) at the $197.50 strike price for $194.80 per share.  Later today (with only 16 minutes remaining in this afternoon's trading session), my order was executed.  One hundred Cardinal Health shares were purchased at $206.35 and one April 10th, 2026 Call option was sold at $11.55 per share at the $197.50 strike price; so, the potential time value profit is $2.70 per share [$11.55 Call option premium - ($206.35 stock purchase price - $197.50 strike price)].  

This position uses my Dividend Capture Strategy (see details here) since there is an upcoming quarterly ex-dividend of $.5107 per share (annual dividend yield of 1.0%) on April 1st, 2026 which is prior to the April 10th options expiration date, so two potential return-on-investment results detailed below for this position includes this dividend income.    

As preferred by the Covered Calls Advisor, Cardinal Health's next quarterly earnings report on April 30th, 2026 will be after the April 10th 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 when the probability the stock is in-the-money on the options expiration date was 71.6%.

Cardinal Health is part of an oligopoly (along with McKesson and Cencora) that controls about 90% of U.S. drug and medical products distribution to hospitals, pharmacies, and health systems. 

Cardinal Health was the #1 ranked company (of only 16 total companies that met all criteria) in my custom Stock Rover stock screener using metrics obtained from O'Shaughnessy's book titled "What Works on Wall Street".  The details are: 

As detailed below, two potential return-on-investment results are: (1) +1.4% absolute return-on-investment (equivalent to +56.1% annualized return-on-investment over the next 9 days) if the stock is assigned on the day prior to the April 1st ex-dividend date; or (2) +1.6% absolute return-on-investment (equivalent to +33.4% annualized return-on-investment over the next 18 days) if the stock is assigned on the April 10th, 2026 options expiration date.

Cardinal Health Inc. (CAH) -- New Covered Call Position
The buy/write transaction today was as follows:
3/23/2026 Bought 100 Cardinal Health Inc. shares @ $206.35
3/23/2026 Sold 1 Cardinal Health 4/10/2026 $197.50 Call option @ $11.55 per share.  The implied volatility of this Call was 33.3 when this transaction was executed.  
4/1/2026 Upcoming quarterly ex-dividend of $.5107 per share

Two potential overall performance results (including commissions) for this Cardinal Health Covered Call position are as follows:
Covered Call Cost Basis: $19,480.67
= ($206.35 - $11.55) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,154.33
= ($11.55 * 100 shares) - $.67 commissions
(b) Dividend Income (If CAH shares assigned on the day prior to the April 1st ex-dividend date): +$0.00
(b) Dividend Income (If CAH shares assigned at the April 10th, 2026 options expiration date): +$51.07
= ($.5107 dividend per share x 100 shares)

(c) Capital Appreciation (If Cardinal Health shares assigned on the day prior to the April 1st ex-dividend date): -$885.00

+($197.50 strike price - $206.35 stock purchase price) * 100 shares

(c) Capital Appreciation (If Cardinal Health shares assigned at the $197.50 strike price on the 4/10/2026 options expiration date): -$885.00
+($197.50 strike price - $206.35 stock purchase price) * 100 shares

1. Total Net Profit (If Cardinal Health shares assigned on the day prior to the April 1st ex-dividend date): +$269.33

= (+$1,154.33 option income + $0.00 dividend income - $885.00 capital appreciation)

2. Total Net Profit (If Cardinal Health shares assigned at the April 10th, 2026 options expiration date): +$320.40

= (+$1,154.33 option income + $51.07 dividend income - $885.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If Cardinal Health shares assigned on the day prior to the April 1st ex-dividend date) : +1.4%

= +$269.33/$19,480.67

Potential Annualized Return-on-Investment: +56.1%

= (+$269.33/$19,480.67) * (365/9 days)

2. Potential Absolute Return-on-Investment (If Cardinal Health shares assigned at the April 10th, 2026 options expiration date): +1.6%

= +$320.40/$19,480.67

Potential Annualized Return-on-Investment: +33.4%

= (+$320.40/$19,480.67) * (365/18 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 Cardinal Health Inc. position, all nine criteria are met.

Closed Covered Calls Position in Global Payments Inc.

On last Friday's options expiration date, the Covered Calls position in Global Payments Inc.  (ticker GPN) closed out-of-the-money, so its Call options expired and the 400 shares remained in the Covered Calls Advisor Portfolio. Early in today's trading session I closed out this position at a net loss of $1,193.32 by selling the 400 shares of Global Payments at $70.28 which was below the original $75.00 strike price.  Along with other financial services companies, Global Payment's stock price has been punished since the start of the Iran War. The transactions history for this position and the associated return-on-investment results are detailed below.

Global Payments Inc. (GPN) -- Closed Out 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).
2/26/2026 Quarterly ex-dividend of $.25 per share.

3/20/2026 GPN closed out-of-the-money at $68.50 per share, so the Call options expired and the 400 Global Payments shares remained in the Covered Calls Advisor Portfolio.

3/23/2026 Closed out this Delta Covered Calls position by selling 400 GPN shares at $70.28.

The 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: +$100.00
= ($.25 dividend per share x 400 shares)

(c) Capital Appreciation (400 GPN shares sold at $70.28 per share): -$3,340.00

+($70.28 stock selling price - $78.63 stock purchase price) * 400 shares

Total Net Loss: -$1,193.32

= (+$2,046.68 options income + $100.00 dividend income - $3,340.00 capital appreciation)

Absolute Return-on-Investment: -4.1%

= -$1,193.32/$29,410.68

Annualized Return-on-Investment: -54.9%

= (-$1,193.32/$29,410.68) * (365/27 days)

March 20th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with March 20th, 2026 options expiration dates.  Two positions (Expand Energy Corporation 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 Gilead Sciences Inc. and Global Payments Inc. 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. Expand Energy Corporation (EXE) -- +1.9% absolute return (equivalent to +28.3% annualized return-on-investment) for the 24 days of this investment.  This Covered Calls position was assigned at the $95.00 strike price since the stock closed in-the-money at $107.32 per share.  The original blog post detailing this Covered Calls position is here. 

2. Global Payments Inc. (GPN) -- This Covered Calls position closed yesterday at $68.50 which was well below its $75.00 strike price, so the four Call options expired and 400 Global Payments 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 four Call options against the 400 Global Payments Inc. shares currently held or close out the position by selling these shares.

3. Gilead Sciences Inc. (GILD) -- This Covered Call position closed yesterday at $137.21 which was below its $140.00 strike price, so the one Call option expired and 100 Gilead 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 Gilead shares currently held or close out the position by selling these shares. 

4. NVIDIA Corporation (NVDA) -- +1.9% absolute return (equivalent to +64.5% annualized return-on-investment) for the 11 days of this investment.  This Covered Call position was assigned at the $170.00 strike price since the stock closed in-the-money at $172.70 per share.  The original 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

Established Covered Calls in NVIDIA Corporation

Early in this morning's trading session, I established a short-term Covered Calls position of 13 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $172.20 was executed by simultaneously purchasing two hundred shares at $177.13 and selling two April 2nd, 2026 Call options at $4.93 per share and at the $177.50 strike price. A slightly out-of-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $177.50 strike price) on the 4/2/2026 options expiration date was 47.9% when this transaction was executed. 

NVIDIA reported their Q4 earnings after the market close three weeks 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's result.  Two additional positives since their earnings report were the announcements at their GTC Conference and earlier this week an announcement of approval that shipments of their earlier generation H200 GPUs to approved companies in China can commence.  NVIDIA's stock has reacted negatively since then, but I agree with the numerous sell-side equity research firms that raised their NVIDIA post-earnings target prices.  The average target price of Wall Street analysts is now $264.57 (+49.4% above today's purchase price).  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $177.50 strike price) and therefore assigned on its April 2nd, 2026 options expiration date is +3.1% absolute return-on-investment (equivalent to +86.3% annualized return-on-investment for the next 13 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
3/20/2026 Bought 200 NVIDIA Corporation shares at $177.13.

3/20/2026 Sold 2 NVIDIA 4/2/2026 $177.50 Call options @ $4.93 per share.  The Implied Volatility of these Calls was 37.3 when this position was established, which is well above (as preferred) the VIX which was 25.0.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $34,441.34
= ($177.13 - $4.93) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$984.66
= ($4.93 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $177.50 strike price) on the 4/2/2026 options expiration date): +$74.00
+($177.50 strike price - $177.13 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $177.50 strike price on the 4/2/2026 options expiration date): +$1,058.66

= (+$984.66 options income + $0.00 dividend income + $74.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $177.50 strike price on the 4/2/2026 options expiration date): +3.1%

= (+$1,058.66/$34,441.34)

Potential Annualized Return-on-Investment: +86.3%
= (+$1,058.66/$34,441.34) * (365/13 days)

Covered Calls Position Established in Sea Limited ADR

A Covered Calls position in Sea Limited ADR (ticker SE) was established today when two hundred shares were purchased at $80.61 and two April 2nd, 2026 Call options were sold at $7.23 per share at the $75.00 strike price.  The buy/write net debit limit order at $73.38 was executed, so the time value was $1.62 per share [$7.23 Call options premium - ($80.61 stock purchase price - $75.00 strike price)].  As I prefer, Sea's next quarterly earnings report is not until May 12th, 2026 which is long after the April 2nd, 2026 options expiration date.  An in-the-money Covered Calls position was established with a 70.7% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Sea Ltd. is a large-cap ($46 billion market cap) company headquartered in Singapore.  It is a consumer internet company with three core businesses -- e-commerce, digital gaming, and fintech services.  The e-commerce business called Shopee is their largest business (by revenue) and is a mobile-centric, social-focused marketplace providing users a shopping environment with integrated payment, logistics, and seller services.  The digital gaming business is called Galena which offers mobile and personal computer online games and develops mobile games for the worldwide market. The fintech services (called SeaMoney) includes mobile wallet services, payment processing, credit, banking, and insurance tech.  Their operations are primarily in Indonesia, Taiwan, Thailand, Singapore, Malaysia, the Philippines, and Brazil.  

Sea appeared in my Key Metrics for Comparing Companies stock screener.  As shown below, it passed all the screener criteria including the fact that the average target price of the 21 analysts currently covering the company is +74.4% above today's stock purchase price.  This is the largest upside potential for all 30 companies in CFRA's Platinum Portfolio.  Also, although Sea's quarterly earnings reports have been erratic compared with analysts' estimates, I like that (unlike most companies) there is a close correlation between their quarterly GAAP and non-GAAP EPS results.  

  

As detailed below, a potential return-on-investment result is +2.2% absolute return-on-investment (equivalent to +57.3% annualized return-on-investment over the next 14 days) if the stock is assigned on the April 2nd, 2026 options expiration date.

Sea Limited ADR (SE) -- New Covered Calls Position
The simultaneous buy/write transaction today was as follows:
3/19/2026 Bought 200 Sea Ltd. shares @ $80.61
3/19/2026 Sold 2 SE 4/2/2026 $75.00 Call options @ $7.23 per share
Note: the Implied Volatility of the Calls was 62.3 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 25.5.

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if assigned on the options expiration date is as follows:
Covered Calls Cost Basis: $14,677.34
= ($80.61 - $7.23) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,444.66
= ($7.23 * 200 shares) - $1.34 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $75.00 strike price at options expiration): -$1,122.00
+($75.00 strike price - $80.61 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $75.00 strike price at the 4/2/2026 expiration): +$322.66

= (+$1,444.66 options income + $0.00 dividend income - $1,122.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $75.00 strike price on the April 2nd, 2026 options expiration date): +2.2%

= +$322.66/$14,677.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $75.00 strike price at the 4/2/2026 options expiration date): +57.3%

= (+$322.66/$14,677.34) * (365/14 days)

Covered Call Position Established in Microsoft Corporation

Early in this morning's trading session (at 9:35am ET), I purchase 100 Microsoft Corporation (ticker MSFT) shares at $395.625.  Seven minutes later at 9:42am, I sold 1 Microsoft April 2nd, 2026 Call option at the $185.00 strike price at $17.55 per share (when the stock price was $397.70) to establish a Covered Call position.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $6.925 per share [$17.55 Call option premium - ($395.625 stock purchase price - $385.00 strike price)].  The probability of assignment on the options expiration date was 70.1% when this Covered Call position was established which is a moderately conservative position established 2.8% in-the-money.  This position avoids the next quarterly earnings report on April 29th which is after the April 2nd options expiration date. 

Microsoft is currently top-rated (5 stars) by both Morningstar and CFRA.  LSEG Stock Reports Plus rates it at 9 in both Overall and Fundamentals (on a scale of 1 to 10).  The average analysts' target price is $595.55 which is +50.5% above today's stock purchase price.  Microsoft also appeared in my "Current and Future Earnings Growers" stock screener (detailed results shown in the table below); and I am also pleased that there are no red flags (i.e. "Warnings") in StockRover's Insight Panel for Microsoft Corporation.  

As detailed below, a potential outcome for this Microsoft Corporation investment is +1.8% absolute return-on-investment for the next 15 days (equivalent to +44.5% annualized-return-on-investment) if the stock closes above the $385.00 strike price on the April 2nd, 2026 options expiration date.

Microsoft Corporation (MSFT) -- New Covered Call Position

This Covered Call position transactions are as follows:
3/18/2026 Bought 100 shares of Microsoft stock @ $395.625 per share.  
3/18/2026 Sold 1 MSFT April 2nd, 2026 $385.00 Call option @ $17.55 per share.  The Implied Volatility of the Call was 29.8 when this transaction was executed.

A possible overall performance result (including commissions) if this position is assigned on its 4/2/2026 option expiration date is as follows:
Microsoft Covered Call Net Investment: $37,808.17
= ($395.625 - $17.55) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,754.33
= ($17.55 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Microsoft stock is above the $385.00 strike price at the April 2nd, 2026 option expiration date): -$1,062.50
= ($385.00 strike price - $395.625 stock purchase price) * 100 shares

Potential Total Net Profit (If assigned at expiration): +$691.83
= (+$1,754.33 option income + $0.00 dividend income - $1,062.50 capital appreciation)

Potential Absolute Return-on-Investment: +1.8%
= +$691.83/$37,808.17
Potential Equivalent Annualized-Return-on-Investment: +44.5%
= (+$691.83/$37,808.17) * (365/15 days)

Continuation of Covered Calls Positions in Bank of America, NVIDIA, and Cigna

The Covered Calls Advisor Portfolio had three Covered Calls positions with March 13th, 2026 (last Friday) options expiration dates.  All three positions (Bank of America Corporation, NVIDIA Corporation, and The Cigna Group) closed out-of-the-money so their Calls expired and the shares remained in the Covered Calls Advisor Portfolio.

This morning I decided to extend all three of these Covered Calls positions by two weeks by selling March 27th, 2026 Call options against the shares currently held in the Covered Calls Advisor Portfolio.  

As detailed below, the potential return-on-investment results if the stocks close in-the-money on their March 27th expiration date are:

1. Bank of America Corporation -- -0.9% absolute return-on-investment (equivalent to -9.6% annualized roi) for the 35 days of this investment.

2. NVIDIA Corporation -- +8.2% absolute return-on-investment (equivalent to +106.7% annualized roi) for the 28 days of this investment.

3. The Cigna Group -- +2.5% absolute return-on-investment (equivalent to +25.2% annualized roi) for the 36 days of this investment.

The details for each of these three positions (in alphabetical order) are as follows:

1. Bank of America Corporation (BAC) -- Continuation of this 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 Ex-dividend of $.28 per share
3/13/2026 Bank of America stock closed out-of-the-money at $46.72 (i.e. below the $50.00 strike price), so the Call options expired and the 500 shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 5 March 27th, 2026 $47.50 Call options at $1.08 per share when the stock price was trading at $47.39.  The Implied Volatility of these Calls was 34.4% when this transaction was made.

A possible overall performance result (including commissions) if the stock is assigned on the 3/27/2026 options expiration date 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: +$1,838.30
= ($2.61 + $1.08) * 500 shares - $6.70 commissions
(b) Dividend Income: +$140.00
= $.28 per share x 500 shares
(c) Capital Appreciation (If shares above the $47.50 strike price at the March 27th options expiration): -$2,205.00
= ($47.50 - $51.91) * 500 shares

Potential Net Loss (If BAC price is above the $47.50 strike price at the March 27th options expiration): -$226.70
= (+$1,838.30 options income + $140.00 dividend income - $2,205.00 capital appreciation)

Absolute Return-on-Investment (If BAC price is above $47.50 strike price at the March 27th options expiration): -0.9%   = -$226.70/$24,653.35
Equivalent Annualized Return-on-Investment (If assigned on the 3/27/2026 options expiration date): -9.6%
= (-$226.70/$24,653.35) * (365/35 days)

2. NVIDIA Corporation (NVDA) -- Continuation of this Covered Calls 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. 🤣

3/13/2026 NVIDIA Corporation stock closed out-of-the-money at $180.25 (i.e. below the $185.00 strike price), so the Call options expired and the 200 NVIDIA shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 2 March 27th, 2026 $185.00 Call options at $5.20 per share when the stock price was trading at $184.09.  The Implied Volatility of these Calls was 42.6% when this transaction was made.

A possible overall performance result (including commissions) if this NVIDIA Corporation Covered Calls position is in-the-money on its 3/27/2026 expiration date is as follows:
Covered Calls Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,877.32
= ($4.35 + $5.05) x 200 shares) - $2.68 commissions
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $185.00 strike price) on the 3/27/2026 options expiration date): +$996.00
+($185.00 strike price - $180.02 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $185.00 strike price on the 3/27/2026 options expiration date): +$2,875.32

= (+$1,877.32 options income + $2.00 dividend income + $996.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $185.00 strike price on the 3/27/2026 options expiration date): +8.2%

= (+$2,875.32/$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): +106.7%

= (++$2,875.32/$35,135.34) * (365/28 days)

3. The Cigna Group (CI) -- Continuation of this Covered Call Positionon

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

3/13/2026 The Cigna Group stock closed out-of-the-money at $267.19 (i.e. below the $275.00 strike price), so the Call option expired and the 100 Cigna shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Call position by selling 1 March 27th, 2026 $270.00 Call option at $6.70 per share when the stock price was trading at $269.45.  The Implied Volatility of this Call options was 38.4% when this transaction was made.

A possible overall performance result (including commissions) if this Cigna Covered Call position is in-the-money on its 3/27/2026 expiration date is as follows:
Covered Call Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commissions

Net Profit Components:
(a) Option Income: +$2,224.66
= ($15.56 +6.70) * 100 shares - $1.34 commissions
(b) Dividend Income: +$156.00
= ($1.56 dividend per share x 100 shares)

(c) Capital Appreciation (If Cigna shares assigned at the $270.00 strike price at the options expiration): -$1,706.00

+($270.00 - $287.06) * 100 shares

Total Net Profit (If Cigna shares assigned at the March 27th, 2026 options expiration date): +$674.66

= (+$2,224.66 option income + $156.00 dividend income - $1,706.00 capital appreciation)

Potential Absolute Return-on-Investment (If Cigna shares assigned at the March 27th, 2026 options expiration date): +2.5%

= +$674.66/$27,150.67

Potential Annualized Return-on-Investment: +25.2%

= (+$674.66/$27,150.67) *(365/36 days)

March 13th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with March 13th, 2026 options expiration dates.  All three positions (Bank of America Corporation, NVIDIA Corporation, and The Cigna Group) closed out-of-the-money so their Calls 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. Bank of America Corporation (BAC) -- This Covered Calls position closed yesterday at $46.72 which was below its $50.00 strike price, so the five Call options expired and 500 Bank of America 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 five Call options against the 500 BofA shares currently held or close out the position by selling these shares. 

2. NVIDIA Corporation (NVDA) -- This Covered Calls position closed yesterday at $180.25 which was below its $185.00 strike price, so the two Call options expired and 200 NVIDIA 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 two Call options against the 200 NVIDIA shares currently held or close out the position by selling these shares. 

3. The Cigna Group (CI) -- This Covered Call position closed yesterday at $267.19 which was below its $275.00 strike price, so the one Call option expired and 100 Cigna 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 Cigna shares currently held or close out the position by selling these shares. 

During the past month, I have been reducing my long exposure in favor of a higher allocation to cash (i.e. money market fund).  The S&P 500 performance year-to-date is -2.9% and my portfolio is +0.3%.  

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

In this afternoon's trading session, I established a short-term Covered Calls position of 11 days duration in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $166.76 was executed by simultaneously purchasing two hundred shares at $179.56 and selling two March 20th, 2026 Call options at $12.80 per share and at the $170.00 strike price. An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $170.00 strike price) on the 3/20/2026 options expiration date was 70.1% when this transaction was executed. 

NVIDIA reported their Q4 earnings after the market close twelve 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's result.  NVIDIA's stock has reacted negatively since then, but I agree with the numerous sell-side equity research firms that raised their NVIDIA post-earnings target prices.  The average target price of Wall Street analysts is now $261.97 (+45.9% above today's purchase price).  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $170.00 strike price) and therefore assigned on its March 20th, 2026 options expiration date is +1.9% absolute return-on-investment (equivalent to +64.5% annualized return-on-investment for the next 11 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
3/9/2026 Bought 200 NVIDIA Corporation shares at $179.56.

3/9/2026 Sold 2 NVIDIA 3/20/2026 $170.00 Call options @ $12.80 per share.  The Implied Volatility of these Calls was 56.3 when this position was established, which is well above (as preferred) the VIX which was 27.6.  
3/11/2026 Ex-dividend of $.01 per share.  This miniscule dividend amount for the #1 largest market cap company is ludicrous. 🤣

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $33,353.34
= ($179.56 - $12.80) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,558.66
= ($12.80 * 200 shares) - $1.34 commission
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $170.00 strike price) on the 3/20/2026 options expiration date): -$1,912.00
+($170.00 strike price - $179.56 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $170.00 strike price on the 3/20/2026 options expiration date): +$648.66

= (+$2,558.66 options income + $2.00 dividend income - $1,912.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $170.00 strike price on the 3/20/2026 options expiration date): +1.9%

= (+$648.66/$33,353.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $170.00 strike price on the 3/20/2026 options expiration date): +64.5%
= (+$648.66/$33,353.34) * (365/11 days)

Closed Covered Calls Position in Delta Air Lines Inc.

On last Friday's options expiration date, the Covered Calls position in Delta Air Lines Inc. (ticker DAL) closed out-of-the-money, so its Call options expired and the 400 shares remained in the Covered Calls Advisor Portfolio. Early in today's trading session I closed out this position at a net loss of $2,663.68 by selling the 400 shares of Delta at $57.24.  Along with other airlines companies, Delta's stock price has been punished because of the spike in oil prices since the start of the Iran War. The transactions history for this position and the associated return-on-investment results are detailed below.

Delta Air Lines Inc. (DAL) -- Closed Out 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 Quarterly ex-dividend of $.1875 per share.

3/6/2026 Delta closed out-of-the-money at $59.01 per share, so the Call options expired and the 400 Delta shares remained in the Covered Calls Advisor Portfolio.

3/9/2026 Closed out this Delta Covered Calls position by selling 400 DAL shares at $57.24.

The 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: +$75.00
= ($.1875 dividend per share x 400 shares)

(c) Capital Loss: -$5,132.00

+($57.24 stock sales price - $70.07 stock purchase price) * 400 shares

Total Net Loss: -$2,663.68

= (+$2,393.32 options income + $75.00 dividend income - $5,132.00 capital appreciation)

Absolute Return-on-Investment: -10.4%

= -$2,663.68/$25,634.68

Annualized Return-on-Investment (If Delta's shares assigned at $65.00 at the March 6th, 2026 expiration): -189.6%

= (-$2,663.68/$25,634.68) * (365/20 days)

March 6th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with March 6th, 2026 options expiration dates.  The position in Boeing Company closed in-the-money at $231.11 so the Call option expired and the 100 shares were called away (i.e. sold) at the $225.00 strike price.  The other position in Delta Air Lines Inc. closed out-of-the-money so the Call options expired and the shares remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions is as follows:

1. Boeing Company (BA) -- +1.4% absolute return (equivalent to +34.1% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $225.00 strike price since the stock closed in-the-money at $231.11 per share.  The original blog post detailing this Covered Call position is here. 

2. Delta Air Lines Inc. (DAL) -- This Covered Calls position closed yesterday at $59.01 which was well below its $65.00 strike price, so the four Call options expired and 400 Delta 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 four Call options against the 400 Delta Air Lines shares currently held or close out the position by selling these shares. 

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

Closed Covered Call Positions in Capital One Financial Corporation and KraneShares CSI China Internet ETF

Early in today's trading session, I closed out the Covered Call positions in Capital One Financial Corporation (COF) and KraneShares CSI China Internet ETF (KWEB).  In both positions, the stocks closed out-of-the-money on their options expiration dates and the stocks remained in the Covered Calls Advisor Portfolio.  The stocks have continued to decline, so closing them today resulted in a net loss of $830.67 from the Capital One position and $2,043.35 from the KWEB position.  Capital One has a large credit card business, and the stock is a casualty of current concerns related to private credit, but which has also impacted public companies in the credit card business.  In the case of KWEB, two key negative factors are the renewed trade tensions between the U.S. and China and also new concerns about slowing economic growth in the Chinese economy.  

Another reason for closing out these positions and increasing the money market fund component in my Covered Calls Advisor Portfolio stems from my concern on the potential for a significant decline in the overall market during the next several weeks while the war against Iran continues.  My total portfolio is now up by +1.9% for 2026 year-to-date and is only 0.8% below its all-time high which occurred on February 25th this year.   

The transactions history for these positions and the associated return-on-investment results are detailed below.

1. Capital One Financial Corporation (COF) -- Closed Out Covered Call Position
The buy/write transaction was:
2/5/2026 Bought 100 Capital One Financial shares @ $219.31
2/5/2026 Sold 1 Capital One 2/27/2026 $210.00 Call option @ $13.25 per share.  The Implied Volatility of the Calls was 36.5 when this transaction occurred which, as I prefer, is well above the current S&P 500 Volatility Index (i.e. VIX) of 20.6.
2/19/2026 Quarterly ex-dividend of $.80 per share
2/27/2026 Call option closed out-of-the-money, so the Call option expired and 100 COF shares remained in the Covered Calls Advisor Portfolio.
3/5/2026 Sold 100 shares of Capital One Financial at $196.96 per share.

The overall performance results (including commissions) for this Capital One Covered Call position are as follows:

Covered Call Net Investment: $20,606.67
= ($219.31 - $13.25) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$1,324.33
= ($13.25 * 100 shares) - $.67 commission
(b) Dividend Income: +$80.00
= ($.80 dividend per share x 100 shares)
(c) Capital Appreciation (COF shares sold at $196.96): -$2,235.00 = +($196.96 - $219.31) * 100 shares

Total Net Loss: -$830.67

= (+$1,324.33 option income +$80.00 dividend income - $2,235.00 capital appreciation)

Absolute Return-on-Investment: -4.0%

= -$830.67/$20,606.67

Annualized Return-on-Investment: -52.5%

= (-$830.67/$20,606.67) * (365/28 days)

2. KraneShares CSI China Internet ETF (KWEB) -- Closed Out Covered Calls Position 

The net debit limit Buy/Write transaction was as follows:
2/2/2026 Bought 500 shares of KraneShares CSI China Internet ETF @ $35.21 per share.  
2/2/2026 Sold 5 KWEB Feb. 13th, 2026 $34.50 Call options @ $1.14 per share.  The Implied Volatility of the Calls was 30.5 when this position was established.  

2/13/2026 Five Call options closed out-of-the-money, so the Call options expired and 500 KWEB shares remained in the Covered Calls Advisor Portfolio.

3/5/2026 Sold 500 KraneShares CSI China Internet ETF shares at $29.99 per share.

The overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows: 

KWEB Covered Calls Net Investment: $17,038.35

= ($35.21 - $1.14) * 500 shares + $3.35 commission

Net Profit:
(a) Options Income: +$566.65
= ($1.14 * 500 shares) - $3.35 commission
(b) Dividend Income: +$0.00
(c) Net Capital Loss: -$2,610.00
+($29.99 ETF sales price - $35.21 shares purchase price) * 500 shares

Total Net Loss: -$2,043.35
= (+$566.65 options income + $0.00 dividend income - $2,610.00 capital appreciation)

Absolute Return-on-Investment: -12.0%
= -$2,043.35/$17,038.35
Annualized Return-on-Investment: -141.2%
= (-$2,043.35/$17,038.35) * (365/31 days)

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)