Tuesday, April 14, 2026

Established Covered Calls in NVIDIA Corporation

Today a short-term Covered Calls position of 10 days duration in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $182.90 was executed and the time value was $2.10 per share [$8.80 Call options premium - ($191.70 stock purchase price - $185.00 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 $185.00 strike price) on the 4/24/2026 options expiration date was 72.4% when this transaction was executed. 

The current average target price of Wall Street analysts is now $264.57 (+38.0% above today's purchase price).  Today's position continues my recent history of establishing NVIDIA Covered Call positions with expiration dates every week.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $185.00 strike price) and therefore assigned on its April 24th, 2026 options expiration date is +1.1% absolute return-on-investment (equivalent to +41.2% annualized return-on-investment for the next 10 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position
Today's buy/write net limit order transaction was as follows:
4/14/2026 Bought 200 NVIDIA Corporation shares at $191.70.
4/14/2026 Sold 2 NVIDIA 4/24/2026 $185.00 Call options @ $8.80 per share.  The Implied Volatility of these Calls was 35.8 when this position was established, which is well above (as preferred) the VIX which was 18.5.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $37,079.34
= ($194.19 - $8.80) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,758.66
= ($8.80 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $185.00 strike price) on the 4/24/2026 options expiration date): -$1,340.00
+($185.00 strike price - $191.70 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $185.00 strike price on the 4/24/2026 options expiration date): +$418.66
= (+$1,758.66 options income + $0.00 dividend income - $1,340.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $185.00 strike price on the 4/24/2026 options expiration date): +1.1%
= (+$418.66/$37,079.34)
Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $185.00 strike price on the 4/24/2026 options expiration date): +41.2%
= (+$418.66/$37,079.34) * (365/10 days)