Established Covered Calls Position in Bristol-Myers Squibb Company

A new Covered Calls position of 15 days duration was established today in Bristol-Myers Squibb Company (ticker BMY).  My buy/write net debit limit order at $59.38 was executed and the time value was $.62 per share [$1.57 Call options premium - ($60.95 stock purchase price - $60.00 strike price)].  An in-the-money strike price was established with the probability that this Bristol Myers stock will close in-the-money (i.e. above the $60.00 strike price) on the 9/11/2026 options expiration date was 63.1% when this transaction was executed.  As preferred, their next quarterly earnings report on October 29th is well after the October 9th options expiration date. 

This Bristol Myers Covered Calls position was established to take advantage of my Dividend Capture Strategy (see details here) since there is an upcoming quarterly ex-dividend of $.63 per share (4.1% dividend yield) on October 2nd, 2026.  So, two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment on the last business day prior to the ex-dividend date and on the October 9th options expiration date if instead BMY's stock price is in-the-money on its October 9th, 2026 options expiration date.  

Bristol Myers Squibb is a global biopharmaceutical company that discovers, develops, manufactures, and sells prescription medicines, with a focus on oncology, immunology, cardiovascular disease, and neuroscience. Its largest products include Eliquis for preventing blood clots and stroke, Opdivo for cancer, Pomalyst/Imnovid and Abecma for blood cancers, and Camzyos for certain heart conditions. The company generates most of its revenue from a portfolio of established drugs while investing heavily in research and development to replace revenue as patents expire and to expand newer products. Bristol Myers Squibb's business model therefore combines high-margin pharmaceutical sales with substantial R&D spending, acquisitions/licensing, and ongoing development of its pipeline to support longer-term growth.

As detailed below, a potential return-on-investment result if Bristol Myers share price is: (1) +1.0% absolute return-on-investment (equivalent to +47.1% annualized return-on-investment for the next 8 days) if the stock is assigned early on October 1st (the last day before the ex-dividend date); OR (2) +2.1% absolute return-on-investment (equivalent to +50.9% annualized return-on-investment for the next 15 days) if the stock is instead in-the-money (i.e. above the $60.00 strike price) and therefore assigned on its October 9th, 2026 options expiration date.

Bristol-Myers Squibb Company (BMY) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
9/24/2026 Bought 200 Bristol-Myers Squibb Company shares at $60.95.

9/24/2026 Sold 2 BMY 9/11/2026 $60.00 Call options @ $1.57 per share.  The Implied Volatility of these Calls was 21.6 when this position was established, which is above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) which was 15.7.

Two possible overall performance results (including commissions) for this Bristol Myers Covered Calls position are as follows:
Covered Calls Cost Basis: $11,877.34
= ($60.95 - $1.57) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$312.66
= ($1.57 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on October 1st, the last business day prior to the October 2nd ex-dividend date): +$0.00; or
(b) Dividend Income (If Bristol Myers shares assigned at the October 9th, 2026 options expiration): +$126.00 = ($.63 dividend per share x 200 shares)

(c) Capital Appreciation (If BMY Call options assigned early on October 2nd): -$190.00

+($60.00 strike price - $60.95 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $60.00 strike price at the 10/9/2026 options expiration): -$190.00
+($60.00 - $60.95) * 200 shares

1. Total Net Profit [If option exercised early on the last business day prior to the Oct. 2nd ex-dividend date)]: +$122.66

= (+$312.66 options income + $0.00 dividend income - $190.00 capital appreciation); or

2. Total Net Profit (If Bristol Myers shares assigned at $60.00 strike price at the Oct. 9th, 2026 expiration): +$248.66

= (+$312.66 options income + $126.00 dividend income - $190.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If option exercised early on 10/2/2026): +1.0%

= +$122.66/$11,877.34

Potential Annualized Return-on-Investment: +47.1%

= (+$122.66/$11,877.34) * (365/8 days); or

2. Potential Absolute Return-on-Investment (If BMY shares assigned at $60.00 at the October 9th, 2026 options expiration date): +2.1%

= +$248.66/$11,877.34

Potential Annualized Return-on-Investment (If Bristol Myers shares assigned at the Oct. 9th, 2026 options expiration date): +50.9%

= (+$248.66/$11,877.34) * (365/15 days)