Established Covered Calls in NVIDIA Corporation

Today I established a short-term Covered Calls position in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $202.18 was executed and the time value was $2.82 per share [$9.14 Call options premium - ($211.32 stock purchase price - $205.00 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 $205.00 strike price) on the 6/5/2026 options expiration date was 67.0% when this transaction was executed.  

I prefer not to hold positions on earnings reporting dates and since NVIDIA reported their earnings just last week (which were stellar in all respects), I decided to continue my normal practice of establishing weekly Covered Call positions in NVIDIA each week.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $205.00 strike price) and therefore assigned on its June 5th, 2026 options expiration date is +1.4% absolute return-on-investment (equivalent to +56.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
5/27/2026 Bought 200 NVIDIA Corporation shares at $211.32.

5/27/2026 Sold 2 NVIDIA 6/5/2026 $205.00 Call options @ $9.14 per share.  The Implied Volatility of these Calls was 41.8 when this position was established, which is well above (as preferred) the current 16.6 value of VIX.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $40,437.34
= ($211.32 - $9.14) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,829.34
= ($9.14 * 200 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $205.00 strike price) on the 6/5/2026 options expiration date): -$1,264.00
+($205.00 strike price - $211.32 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $202.00 strike price on the 6/5/2026 options expiration date): +$565.34

= (+$1,829.34 options income + $0.00 dividend income - $1,264.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $205.00 strike price on the 6/5/2026 options expiration date): +1.4%

= (+$565.34/$40,437.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $205.00 strike price on the 6/5/2026 options expiration date): +56.7%
= (+$565.34/$40,437.34) * (365/9 days)