Established Two New Covered Call Positions in NVIDIA Corporation

Two new Covered Call positions were established in NVIDIA Corporation (ticker NVDA) and the details for both positions are shown below.  I almost always establish simultaneous buy/write Covered Call positions, but given my confidence in NVIDIA's earnings report, I decided to stagger the timing by first purchasing the stock and subsequently selling the Call option for both of these positions.  

1. NVIDIA Corporation (NVDA) -- New Covered Call Position

This position transactions were as follows:
8/26/2026 Bought 100 NVIDIA Corporation shares at $210.88.  These shares were purchased yesterday afternoon prior to the earnings release after the market closed.

8/27/2026 Sold 1 NVIDIA 9/11/2026 $215.00 Call option @ $11.75 per share when the stock price was trading at $223.90 early in today's trading session.  
9/10/2026 Ex-dividend of $.25 per share

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position if the stock closes above the $215.00 strike price on the 9/11 options expiration date is as follows:
Covered Call Net Investment: $19,913.67
= ($210.88 - $11.75) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,174.33
= ($11.75 * 100 shares) - $.67 commission
(b) Dividend Income: +$25.00 = $.25 per share x 100 shares
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $215.00 strike price at expiration): +$412.00
+($215.00 strike price - $210.88 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares are in-the-money and therefore assigned at the $215.00 strike price at the options expiration date): +$1,611.33
= (+$1,174.33 option income + $25.00 dividend income + $412.00 capital appreciation)

Potential Absolute Return-on-Investment: +8.1%
= +$1,611.33/$19,913.67
Potential Annualized Return-on-Investment: +184.6%
= (+$1,611.33/$19,913.67) * (365/16 days)

2. NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's Covered Call position transactions were as follows:
8/27/2026 Bought 100 NVIDIA Corporation shares at $222.88.

8/27/2026 Sold 1 NVIDIA 9/11/2026 $220.00 Call option @ $9.56 per share when the stock price was at $225.40. The Implied Volatility of the Call was 34.3 when this option was sold and the probability that the position will close in-the-money and therefore be assigned on the options expiration date was 62.6%.   
9/10/2026 Ex-dividend of $.25 per share

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,331.33
= ($222.88 - $9.56) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$955.33
= ($9.56 * 100 shares) - $.67 commission
(b) Dividend Income: +$25.00 = $.25 per share x 100 shares
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $220.00 strike price at the 9/11/2026 options expiration date): -$288.00
+($220.00 strike price - $222.88 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $220.00 strike price at the options expiration date): +$692.33
= (+$955.33 option income + $25.00 dividend income - $288.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.2%
= +$692.33/$21,331.33
Potential Annualized Return-on-Investment: +79.0%
= (+$692.33/$21,331.33) * (365/15 days)