Covered Call Position Established in Barrick Mining Corporation

Several readers of this blog have indicated that they have difficulty developing a diversified portfolio of Covered Calls because of the total cost of having multiple positions when a single Covered Call of 100 shares for a company at $100 per share would require a $10,000 investment.  So, for example, a portfolio of 8 companies averaging $10,000 each would require $80,000 which is prohibitive for many investors.  So, today I am providing an example of a relatively low-cost Covered Call position in Barrick Mining Corporation (ticker B).  

This position was established today when one hundred shares were purchased at $38.48 and one May 8th, 2026 Call option was sold at $2.22 per share at the $37.00 strike price.  So as shown in the details below, this position was established at a reasonably small cost basis at only $3,626.67. My buy/write net debit limit order at $36.26 was executed, so the time value was $.74 per share [$2.22 Call option premium - ($38.48 stock purchase price - $37.00 strike price)].  As I prefer, Barrick's next quarterly earnings report on May 11th, 2026 is after the May 8th, 2026 options expiration date.  An in-the-money Covered Call position was established with a 64.5% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Barrick Mining Corporation is one of the world's largest gold and copper producers, operating a diversified portfolio of mines across North America, Africa, the Middle East, and South America. Full-year 2025 gold production reached 3.26 million ounces and copper production 220,000 tonnes, both in line with guidance, underpinning a financially exceptional year. The company generated record annual operating cash flow of $7.7 billion and free cash flow of $3.9 billion, while net earnings of $5.0 billion and a year-end cash balance of $6.7 billion left Barrick in a net cash position of $2 billion -- a notably strong balance sheet for a major miner. Looking ahead, Barrick's strategy through 2030 is focused on disciplined growth and portfolio quality, including a significant expansion of its copper footprint to capitalize on rising demand tied to electrification and the global energy transition, while a planned IPO of its premier North American gold assets (including stakes in Nevada Gold Mines and Pueblo Viejo) is expected to be completed by late 2026 and is seen by the Board as the best path to maximizing shareholder value.

Barrick met all criteria in several of my custom stock screeners.  Additionally, the 15 analysts currently covering the company have an average target price of $56.56 for the stock (+47.0% above today's stock purchase price).  

 As detailed below, a potential return-on-investment result is +2.0% absolute return-on-investment (equivalent to +82.0% annualized return-on-investment over the next 9 days) if the stock is assigned on the May 8th, 2026 options expiration date.

Barrick Mining Corporation (B) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
4/29/2026 Bought 100 Barrick Mining Corporation shares @ $38.48
4/29/2026 Sold 1 Barrick 5/8/2026 $37.00 Call option @ $2.22 per share
Note: the Implied Volatility of the Call was 59.1 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 18.5.

A possible overall performance result (including commissions) for this Barrick Mining Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $3,626.67
= ($38.48 - $2.22) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$221.33
= ($2.22 * 100 shares) - $.67 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Barrick shares assigned at $37.00 strike price on the options expiration date): -$148.00
+($37.00 strike price - $38.48 stock purchase price) * 100 shares

Total Net Profit (If Barrick shares assigned at the $37.00 strike price at the May 8th, 2026 options expiration date): +$73.33

= (+$221.33 Call option income + $0.00 dividend income - $148.00 capital appreciation)

Absolute Return-on-Investment (If Barrick shares assigned at $37.00 strike price on the May 8th, 2026 options expiration date): +2.0%

= +$73.33/$3,626.67

Annualized Return-on-Investment (If Barrick's stock is assigned at $37.00 at the 5/8/2026 options expiration date): +82.0%

= (+$73.33/$3,626.67) * (365/9 days)