As detailed below, the return-on-investment results are: +1.3% absolute return (equivalent to +24.0% annualized return-on-investment) for the 20 days of this investment.
NVIDIA Corporation (NVDA) -- Closed Out this Covered Call Position
These Covered Call position transactions were as follows:
8/27/2026 Bought 100 NVIDIA Corporation shares at $222.88.
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
9/10/2026 Ex-dividend of $.25 per share
9/11/2026 NVIDIA's shares closed at $218.29 which was below the $220.00 strike price, so the Call option expired and 100 NVIDIA shares remained in the Covered Calls Advisor Portfolio.
9/16/2026 Closed out this Covered Call position by selling the 100 NVIDIA shares at $215.88.
The 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: (100 shares sold at $215.88 per share): -$700.00
+($215.88 stock selling price - $222.88 stock purchase price) * 100 shares
Total Net Profit: +$280.33
= (+$955.33 option income + $25.00 dividend income - $700.00 capital appreciation)
Absolute Return-on-Investment: +1.3%
= +$280.33/$21,331.33
Annualized Return-on-Investment: +24.0%
= (+$280.33/$21,331.33) * (365/20 days)
