Established Covered Call Position in D.R. Horton Inc.

This afternoon my Covered Call net debit limit order was entered and soon thereafter executed in D.R. Horton Inc. (ticker DHI) with a short-term August 14th, 2026 options expiration date.  One D.R. Horton Call option was sold at $7.99 at the $140.00 strike price when the stock price was $145.89 -- the net debit was $137.90 per share and the Call option's time value profit potential was $2.10 [$7.99 option price - ($145.89 stock price - $140.00 strike price)].  The probability that the Call will be in-the-money (i.e. above the $140.00 strike price) on the 814/2026 options expiration date was 69.4% when this position was established. There is an intervening ex-dividend of $.45 per share (1.2% annual dividend yield) on August 6th which is included in the potential return-on-investment results detailed below.

D.R. Horton is the largest homebuilder in America by market cap. Importantly, it is considered the best-in-class operator in its industry and has the highest exposure to the critically important entry-level buyers (67% of closings), lowest debt leverage, and least on-balance sheet land risk.  Although homebuilders' business has been stagnant during the past 3 years, home buyers' demand is strong but constricted by the current high mortgage interest rates.  Just yesterday the 30-year treasury bond yield hit an intraday high above 5.20% which was last seen two decades ago.  Whenever these rates begin to reverse (especially if below 4.5%), homebuilders' financials will begin to improve.  In the meantime, D.R. Horton will continue to manage their business wisely and profitably.  

As detailed below, two potential return-on-investment results are: (1) +1.3% absolute return-on-investment (equivalent to a +67.3% annualized return-on-investment in 7 days if the Call option is exercised and the stock is therefore assigned on the last business day prior to the August 6th ex-dividend date; and (2) +1.6% absolute return-on-investment (equivalent to a +39.4% annualized return-on-investment in 15 days if the DHI stock is in-the-money and the stock is assigned on its August 14th, 2026 options expiration date.

D.R. Horton Inc. (DHI) -- New Covered Call Position
The Buy/Write transaction was as follows:
7/30/2026 Bought 100 shares of D.R. Horton Inc. stock @ $145.89 per share.  
7/30/2026 Sold 1 D.R. Horton August 14th, 2026 $140.00 Call option @ $7.99 per share.  The Implied Volatility of the Call option was 35.8 which, as preferred, is well above the current 17.1 of VIX.
8/6/2026 Upcoming ex-dividend of $.45 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Call Position Net Investment: $13,787.67
= ($145.89 - $7.99) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$767.00
= ($7.67 * 100 shares)
(b) Dividend Income (If option exercised early on Aug. 5th, the last business day prior to the August 6th ex-div date): +$0.00; or
(b) Dividend Income (If DHI stock assigned at the Aug 14th, 2026 expiration): $45.00
= ($.45 dividend per share x 100 shares)
(c) Capital Appreciation (If D.R. Horton Call option is assigned early on August 6th): -$589.00
+($140.00 strike price - $145.89 stock price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $140.00 strike price at the Aug. 14th options expiration): -$589.00
+($140.00 - $145.89) * 100 shares

1. Total Net Profit [If option exercised early on the last business day prior to the August 6th ex-dividend date)]: +$178.00

= (+$767.00 option income +$0.00 dividend income -$589.00 capital appreciation); or

2. Total Net Profit (If stock shares assigned at $140.00 strike price at the Aug. 14th, 2026 expiration): +$223.00

= (+$767.00 option income + $45.00 dividend income - $589.00 capital appreciation)

1. Absolute Return-on-Investment (If option exercised early on August 5th): +1.3%

= +$178.00/$13,787.67

Annualized Return-on-Investment: +67.3%

= (+$178.00/$13,787.67) * (365/7 days); or

2. Absolute Return-on-Investment (If D.R. Horton shares assigned at $140.00 at the August 14th, 2026 options expiration date): +1.6%

= +$223.00/$13,787.67

Annualized Return-on-Investment (If shares assigned at the 8/14/2026 options expiration date): +39.4%

= (+$223.00/$13,787.67) * (365/15 days)

Established Covered Call in NVIDIA Corporation

A Covered Call position of 16 days duration was established today in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $183.30 was executed and the time value (aka extrinsic value) was $6.70 per share [$7.72 Call option premium - ($191.02 stock purchase price - $190.00 strike price)].  A slightly in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $190.00 strike price) on the 8/14/2026 options expiration date was 51.3% when this transaction was executed.  NVIDIA's next earnings report is on 8/26 which, as preferred, is after the 8/14 expiration date.  But the Implied Volatility of the Call option sold was high at 44.0 given the uncertainty of the four megacap companies reporting earnings this week (Meta, Microsoft, Amazon, and Apple) and their commentary about their capital expenditures -- which will also influence NVIDIA's stock price reaction.  I'm optimistic the four will continue their large capex spending plans given Alphabet's increase in capex plans communicated during their recent earnings report.   

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $190.00 strike price) and therefore assigned on its August 14th, 2026 options expiration date is +3.7% absolute return-on-investment (equivalent to +83.3% annualized return-on-investment for the next 16 days).  This very high potential roi result stems from both the close to at-the-money strike price selected as well as the high Implied Volatility of the Call option sold.

NVIDIA Corporation (NVDA) -- New Covered Call Position

The buy/write net limit order transaction was as follows:
7/29/2026 Bought 100 NVIDIA Corporation shares at $191.02.  Note: NVIDIA's stock price was very oversold this morning when this transaction was executed -- the RSI(2) was only 5.5.

7/29/2026 Sold 1 NVIDIA 8/14/2026 $190.00 Call option @ $7.72 per share.  The Implied Volatility of this Call was 44.0 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 19.8.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $18,330.67
= ($191.02 - $7.72) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$771.33
= ($7.72 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $190.00 strike price) on the 8/14/2026 options expiration date): -$102.00
+($190.00 strike price - $191.02 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares are in-the money and therefore assigned at the $190.00 strike price on the 8/14/2026 options expiration date): +$669.33

= (+$771.33 option income + $0.00 dividend income - $102.00 capital appreciation)

Potential Absolute Return-on-Investment (If 100 NVIDIA shares assigned (i.e. sold) at the $190.00 strike price on the 8/14/2026 options expiration date): +3.7%

= (+$669.33/$18,330.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $190.00 strike price on the 8/14/2026 options expiration date): +83.3%
= (+$669.33/$18,330.67) * (365/16 days)

Established Covered Calls Position in IBM Corporation

Today a Covered Calls position was established in IBM Corp. (ticker symbol IBM) when the Covered Calls Advisor's buy/write limit order was executed -- 200 shares were purchased at $217.67 and two August 21st, 2026 Call options were sold at $16.65 per share at the $205.00 strike price.  Therefore, a net debit price of $201.02 which is a time value of $3.98 per share [$16.65 Call options price - ($217.67 stock price - $205.00 strike price)].  This is a moderately in-the-money position since its probability of closing in-the-money on the 8/21/2026 options expiration date was 69.6% when this position was established.  

Two potential return-on-investment results for this position are highlighted below and includes the possibility of early assignment since a quarterly ex-dividend of $1.69 per share (3.2% annualized dividend yield) goes ex-dividend on August 10th which is prior to the August 21st options expiration date.  Either result would be attractive since they both substantially exceed my preferred minimum annualized return-on-investment criteria when using my Dividend Capture Strategy.  Also, as I prefer, there is no intervening quarterly earnings report since IBM's next quarterly earnings report on October 28th, 2026 is after the options expiration date for this position. Finally, IBM passed every criterion in my "Overall Rating Versus Peers" stock screener.  

As detailed below, two potential return-on-investment results are: 

•  +2.0% absolute return (equivalent to +51.5% annualized return for the next 14 days) if the stock is assigned early (business day prior to the August 10th ex-dividend date); OR 

• +2.8% absolute return (equivalent to +41.1% annualized return over the next 25 days) if the stock is assigned on the August 21st, 2026 options expiration date.

IBM Corporation (IBM) -- New Covered Calls Position
The buy/write transaction was:
7/27/2026 Bought 200 IBM shares @ $217.67
7/27/2026 Sold 2 IBM 8/21/2026 $205.00 Call options @ $16.65  The Implied Volatility of the Calls was 40.4 when this transaction occurred, well above the current VIX of 19.2.
8/10/2026 Upcoming quarterly ex-dividend of $1.69 per share

Two possible overall performance results (including commissions) for this IBM Covered Calls position are as follows:
Covered Calls Net Investment: $40,205.34
= ($217.67 - $16.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$3,328.66
= ($16.65 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on August 7th, the last business day prior to the August 10th ex-div date): +$0.00; or
(b) Dividend Income (If IBM stock assigned at the August 21st, 2026 options expiration date): +$338.00
= ($1.69 dividend per share x 200 shares)
(c) Capital Appreciation (If IBM Call options assigned early): -$2,534.00
+($205.00 strike price - $217.67 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $205.00 strike price at options expiration): -$2,534.00 = +($205.00 - $217.67) * 200 shares

1. Total Net Profit [If options exercised early]: +$794.66

= (+$3,328.66 options income +$0.00 dividend income -$2,534.00 capital appreciation); or

2. Total Net Profit (If IBM shares assigned at $205.00 at the August 21st expiration): +$1,132.66

= (+$3,328.66 options income +$338.00 dividend income -$2,534.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised early on August 7th (last business day prior to the 8/10/2026 ex-dividend date)]: +2.0%

= +$794.66/$40,205.34

Annualized Return-on-Investment (If option exercised early): +51.5%

= (+$794.66/$40,205.34) * (365/14 days); or

2. Absolute Return-on-Investment (If IBM shares assigned at $205.00 at the Augus 21st, 2026 options expiration): +2.8%

= +$1,132.66/$40,205.34

Annualized Return-on-Investment (If IBM shares assigned at $205.00 at the August 21st options expiration date): +41.1%

= (+$1,132.66/$40,205.34) * (365/25 days)

July 24th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with July 24th, 2026 options expirations and both positions (IBM Corporation and NVIDIA Corporation) were assigned yesterday so they were closed out at their respective strike prices.  The return-on-investment summary for each position is as follows:

1. IBM Corporation (IBM) -- +1.6% absolute return-on-investment (equivalent to +71.7% annualized return-on-investment) for the 8 days of this investment.  This IBM Covered Call position had a $200.00 strike price and it closed at $214.19 yesterday.  The original blog post showing the details of this position is here. 

2. NVIDIA Corporation (NVDA) -- +2.3% absolute return-on-investment (equivalent to +84.3% annualized return-on-investment) for the 10 days of this investment.  This NVIDIA Covered Calls position had a $202.50 strike price and it closed at $206.84 yesterday.  The original blog post showing the details of this position is here.

There are two primary reasons why these annualized returns are so high: (1) these were short-term (i.e. 8 days and 10 days duration), and the rate of time value decay in the price of options increases (so the potential annualized roi normally also increases) as the duration of the initial position decreases; and (2) both positions also benefited from temporary upward spikes in the Implied Volatility of the Calls when the positions were established.  The IBM position was established on the day after it reported disappointing earnings and the stock was plummeting by an intraday record of more than 25%.  The NVIDIA position was established when its prior day closing price was $212.50 and the stock was purchased the following day when the price had declined to $207.61.

Send your questions/comments to the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Call Position Established in Alphabet Inc.

Late this morning a new short-term Covered Call net debit buy/write limit order was established in Alphabet Inc. (ticker GOOGL) for the July 31st, 2026 expiration and at the $305.00 strike price.  The stock price declined by over 7% this morning after yesterday afternoon's quarterly earnings results.  Investors reacted negatively to the increased capex plan for this year and the negative free cash flow for this quarter. The order was placed at a $302.34 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $2.66 per share [$15.30 Call option premium - ($317.64 stock purchase price - $305.00 strike price)].  The probability that this position will be in-the-money and therefore assigned on its options expiration date was 76.1% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 8 days (equivalent to a +40.0% annualized return-on-investment).  

Alphabet Inc. (GOOGL) -- New Covered Calls Position

The simultaneous buy/write transaction was as follows:
7/23/2026 Bought 100 shares of Alphabet Inc. stock @ $317.64 per share.  
7/23/2026 Sold 1 Alphabet Inc. July 31st $305.00 Call option @ $15.30 per share.
Note: The Implied Volatility of the Call options was 37.4 when this transaction was executed which, as I prefer, is well above the current 19.0 of the S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $30,234.67
= ($317.64 - $15.30) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,529.33
= ($15.30 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Alphabet stock is above $305.00 strike price at the 7/31/2026 options expiration date): -$1,264.00
= ($305.00 strike price - $317.64 stock purchase price) * 100 shares

Total Net Profit Potential: +$265.33
= (+$1,529.33 option income +$0.00 dividend income - $1,264.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$265.33/$30,234.67
Potential Equivalent Annualized Return-on-Investment: +40.0%
= (+$265.33/$30,234.67) * (365/8 days)

Established Covered Calls in IAMGOLD Corporation

A Covered Calls position of 32 days duration was established yesterday in IAMGOLD Corporation (ticker IAG).  My buy/write net debit limit order at $13.00 was executed and the time value was $1.00 per share [$1.10 Call options premium - ($14.10 stock purchase price - $14.00 strike price)].  An in-the-money strike price was established with the probability that IAMGOLD's stock will close in-the-money (i.e. above the $14.00 strike price) on the 8/21/2026 options expiration date was 48.4% when this transaction was executed.  

IAMGOLD Corporation (NYSE: IAG, TSX: IMG) is a Canada-based intermediate gold producer with mines in Canada (Côté Gold, Westwood) and Burkina Faso (Essakane), plus exploration projects like Nelligan in Quebec. Its flagship Côté Gold, run in a 70/30 partnership with Sumitomo Metal Mining, is among Canada's largest producing gold mines and drives growth beyond typical mid-tier peers. Geographic diversification spreads jurisdictional risk while strong Q1 2026 results (~$1.03B revenue, $525M free cash flow) reflect high leverage to gold prices. Competitively, low all-in sustaining costs, disciplined capital allocation, and shareholder returns support its position, though West African exposure and development execution risk remain factors.

IAMGOLD has an intervening quarterly earnings report on August 6th but given the associated very high Implied Volatility of 62.2% as well as the likelihood of a strong report given that spot gold is now 20% higher than at this time last year and IAMGOLD's positive production growth prospects, I am confident in this investment.  Its stock passed all criteria on three of my stock screeners (Acquirers Multiple, Energy and Materials Sectors, and Quality+Value+Growth).  Also, the 9 analysts now following IAMGOLD have an average 1-year target price of $26.13 (+85.3% above the stock purchase price) and LSEG Stock Reports Plus rates it as a 9 for both its Average Score and Optimized Score (on a scale of 1 to 10).   

As detailed below, a potential return-on-investment result if IAMGOLD's share price is in-the-money (i.e. above the $14.00 strike price) and therefore assigned on its August 21st, 2026 options expiration date is +7.6% absolute return-on-investment (equivalent to +87.1% annualized return-on-investment for the next 32 days).

IAMGOLD Corporation (IAG) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/20/2026 Bought 600 IAMGOLD Corporation shares at $14.10.

7/20/2026 Sold 6 IAMGOLD 8/21/2026 $14.00 monthly Call options @ $1.10 per share.  The Implied Volatility of these Calls was 62.2% when this position was established.  

A possible overall performance result (including commissions) for this IAMGOLD Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $7,804.02
= ($14.10 - $1.10) * 600 shares + $4.02 commission

Net Profit:
(a) Options Income: +$655.98
= ($1.10 * 600 shares) - $4.02 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 600 IAMGOLD shares assigned (i.e. above the $14.00 strike price) on the 8/21/2026 options expiration date): -$60.00
+($14.00 strike price - $14.10 stock purchase price) * 600 shares

Total Net Profit Potential (If 600 IAG shares assigned at the $14.00 strike price on the 8/21/2026 options expiration date): +$595.98

= (+$655.98 options income + $0.00 dividend income - $60.00 capital appreciation)

Potential Absolute Return-on-Investment (If 600 IAMGOLD shares assigned (i.e. sold) at the $14.00 strike price on the 8/21/2026 options expiration date): +7.6%

= (+$595.98/$7,804.02)

Potential Annualized Return-on-Investment (If 600 IAMGOLD shares assigned at the $14.00 strike price on the 8/21/2026 options expiration date): +87.1%
= (+$595.98/$7,804.02) * (365/32 days)

July 17th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had one Covered Call position with a July 17th, 2026 options expiration date.  The position in NVIDIA Corporation closed in-the-money at $202.81 so the Call option expired and the 200 shares were called away (i.e. sold) at the $187.50 strike price.  A summary of results for this position is as follows:

NVIDIA Corporation (NVDA) -- +1.6% absolute return (equivalent to +38.9% annualized return-on-investment) for the 15 days of this investment.  This Covered Call position was assigned at the $187.50 strike price since the stock closed in-the-money at $202.81 per share.  The original blog post detailing this Covered Call position is here. 

Email me at the address shown below with any questions or comments on anything related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls in NVIDIA Corporation

A short-term Covered Calls position of 8 days duration was established today in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $199.36 was executed and the time value was $3.14 per share [$8.25 Call options premium - ($207.61 stock purchase price - $202.50 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 $202.50 strike price) on the 7/24/2026 options expiration date was 64.5% when this transaction was executed.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $202.50 strike price) and therefore assigned on its July 24th, 2026 options expiration date is +1.6% absolute return-on-investment (equivalent to +71.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/16/2026 Bought 200 NVIDIA Corporation shares at $207.61.

7/16/2026 Sold 2 NVIDIA 7/24/2026 $202.50 Call options @ $8.25 per share.  The Implied Volatility of these Calls was 42.5 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 16.3.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $39,873.34
= ($207.61 - $8.25) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,648.66
= ($8.25 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $202.50 strike price) on the 7/24/2026 options expiration date): -$1,022.00
+($202.50 strike price - $207.61 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $202.50 strike price on the 7/24/2026 options expiration date): +$626.66

= (+$1,648.66 options income + $0.00 dividend income - $1,022.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $202.50 strike price on the 7/24/2026 options expiration date): +1.6%

= (+$626.66/$39,873.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +71.7%
= (+$626.66/$39,873.34) * (365/8 days)

Covered Calls Position Established in Uber Technologies Inc.

This afternoon a buy/write net debit limit order was executed and 300 shares of Uber Technologies Inc.(ticker symbol UBER) stock were purchased at $72.97 and 3 July 31st, 2026 $70.00 Call options were sold at $4.12 per share -- a net debit of $68.85 per share.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $1.15 per share [$4.12 Call options premium - ($72.97 stock purchase price - $70.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 68.6% when this order was transacted. As preferred, the next quarterly earnings report on August 5th, 2026 is after the July 31st options expiration date.  Uber passed all criteria in my Key Metrics stock screener:

As detailed below, a potential outcome for this Uber Technologies investment is +1.7% absolute return-on-investment for the next 16 days (equivalent to +37.9% annualized-return-on-investment) if the stock closes above the $70.00 strike price on the July 31st, 2026 options expiration date.

Uber Technologies Inc. (UBER) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
7/15/2026 Bought 300 shares of Uber Technologies Inc. stock @ $72.97 per share.  
7/15/2026 Sold 3 Uber July 31st, 2026 $70.00 Call options @ $4.12 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 38.6 when this position was established which, as preferred, is well above the current VIX of 15.9.  

A possible overall performance result (including commissions) if this position is assigned on its 7/31/2026 options expiration date is as follows:
Covered Calls Net Investment: $20,657.01
= ($72.97 - $4.12) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,233.99
= ($4.12 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $70.00 strike price at the 7/31/2026 options expiration date): -$891.00
= ($70.00 - $72.97) * 300 shares

Potential Total Net Profit (If assigned at expiration): +$342.99
= (+$1,233.99 options income + $0.00 dividend income - $891.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.7%
= +$342.99/$20,657.01
Potential Equivalent Annualized-Return-on-Investment: +37.9%
= (+$342.99/$20,657.01) * (365/16 days)

Covered Call Position Established in IBM Corporation

Today a short-term Covered Call position in IBM Corporation (IBM) was established when one hundred shares were purchased at $217.68 and one July 24th, 2026 Call option was sold at $22.20 per share at the $200.00 strike price.  The buy/write net debit limit order at $195.48 was executed, so the time value was $4.52 per share [$22.20 Call option premium - ($217.68 stock purchase price - $200.00 strike price)].  An in-the-money Covered Call position was established with a 71.0% probability of assignment on the options expiration date when this buy/write limit order was executed. IBM stock was down an intraday record of over 25% this morning after they pre-announced disappointing quarterly revenues and earnings.  I took advantage of the upward spike in implied volatility to 81.7 in the 7/24 $200 Call option and established this IBM Covered Call position.

As detailed below, a potential return-on-investment result is +2.3% absolute return-on-investment (equivalent to +84.3% annualized return-on-investment over the next 10 days) if the stock is assigned on the July 24th, 2026 options expiration date.

IBM Corporation (IBM) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
7/14/2026 Bought 100 IBM Corp. shares @ $217.68
7/14/2026 Sold 1 IBM 7/24/2026 $200.00 Call option @ $22.20 per share
Note: the Implied Volatility of the Call was 81.7 when this transaction was executed.  As I prefer, this value greatly exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 16.3.

A possible overall performance result (including commission) for this IBM Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $19,548.67
= ($217.68 - $22.20) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$2,219.33
= ($22.20 * 100 shares) - $.67 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If IBM shares assigned at the $200.00 strike price on the options expiration date): -$1,768.00
+($200.00 strike price - $217.68 stock purchase price) * 100 shares

Total Net Profit (If IBM shares assigned at the $200.00 strike price at the 7/24/2026 expiration date): +$451.33

= (+$2,219.33 option income + $0.00 - $1,768.00 capital appreciation)

Absolute Return-on-Investment (If IBM shares assigned at the $200.00 strike price on the July 24th, 2026 options expiration date): +2.3%

= +$451.33/$19,548.67

Annualized Return-on-Investment (If IBM stock assigned at the $200.00 strike at the 7/24/2026 options expiration date): +84.3%

= (+$451.33/$19,548.67) * (365/10 days)

Established Covered Calls in NVIDIA Corporation

A Covered Calls position of 15 days duration was established today in NVIDIA Corporation (ticker NVDA).  My buy/write net debit limit order at $184.54 was executed and the time value was $2.96 per share [$11.25 Call options premium - ($195.79 stock purchase price - $187.50 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 $187.50 strike price) on the 7/17/2026 options expiration date was 69.3% when this transaction was executed.  

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $187.50 strike price) and therefore assigned on its July 17th, 2026 options expiration date is +1.6% absolute return-on-investment (equivalent to +38.9% annualized return-on-investment for the next 15 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/2/2026 Bought 200 NVIDIA Corporation shares at $195.79.

7/2/2026 Sold 2 NVIDIA 7/17/2026 $187.50 Call options @ $11.25 per share.  The Implied Volatility of these Calls was 39.4% when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 16.2.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $36,909.34
= ($195.79 - $11.25) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,248.66
= ($11.25 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $187.50 strike price) on the 7/17/2026 options expiration date): -$1,658.00
+($187.50 strike price - $195.79 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +$590.66

= (+$2,248.66 options income + $0.00 dividend income - $1,658.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $187.50 strike price on the 7/17/2026 options expiration date): +1.6%

= (+$590.66/$36,909.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +38.9%
= (+$590.66/$36,909.34) * (365/15 days)