Rolled Out Covered Calls Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in NVIDIA Corporation (ticker NVDA) with 200 shares with an options expiration date this Friday.  The current position had a strike price of $185.00 and this morning when the stock was at $178.76, I decided to roll the Covered Calls down-and-out to the April 10th, 2026 $175.00 strike price.  The diagonal spread transaction was buying-to-close the two 3/27/2026 $185.00 Calls at $.24 per share and simultaneously selling-to-open the two 4/10/2026 $175.00 Calls at $7.65 per share for a net credit of $7.41 per share (i.e. $7.65 - $.24).  As preferred, the next NVIDIA quarterly earnings report is not until May 20th, which is after the April 10th, 2026 options expiration date. 

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the April 10th, 2026 options expiration date is +6.7% absolute return-on-investment over 42 days (equivalent to +58.2% annualized-return-on-investment) if the stock closes above the $175.00 strike price on the 4/10/2026 options expiration date. The details showing this potential return-on-investment result are as follows:

NVIDIA Corporation (NVDA) -- Continuation of Covered Calls Position

The original 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.

3/25/2026 Continued this NVDA Covered Calls position by a simultaneous diagonal spread transaction of rolling down-and-out from the 3/27/2026 $185.00s to the 4/10/2026 $175.00s at a net credit of $7.41 per share.

A possible overall performance result (including commissions) if this NVIDIA Corporation Covered Calls position is in-the-money on its 4/10/2026 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: +$3,356.64
= ($4.35 + $5.05 - $.24 + $7.65) x 200 shares) - $5.36 commissions
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $175.00 strike price) on the 4/10/2026 options expiration date): -$1,004.00
+($175.00 strike price - $180.02 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $175.00 strike price on the 4/10/2026 options expiration date): +$2,354.64

= (+$3,356.64 options income + $2.00 dividend income - $1,004.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $175.00 strike price on the 4/10/2026 options expiration date): +6.7%

= (+$2,354.64/$35,135.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $175.00 strike price on the 4/10/2026 options expiration date): +58.2%

= (+$2,354.64/$35,135.34) * (365/42 days)