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)
