Covered Call Position Established in NVIDIA Corporation

A short-term (10 days) slightly in-the-money Covered Call position was established this afternoon in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $212.32 was executed when one hundred shares were purchased at $217.67 and one November 6th, 2026 Call option was simultaneously sold at the $217.50 strike price at $5.35 per share, which provides a $5.18 per share = [$5.35 Call option premium received - ($217.67 stock purchase price - $217.50 option strike price)] time value profit potential.  The probability that NVIDIA's stock will close in-the-money on the 11/6/2026 options expiration date was 50.0% when this transaction was executed.  Also, the next quarterly earnings report on November 17th is after the November 6th options expiration date. 

As detailed below, a potential return-on-investment result is +2.4% absolute return-on-investment (equivalent to +88.9% annualized return-on-investment for the next 10 days) if NVIDIA's share price is in-the-money (i.e. above the $217.50 strike price) and therefore assigned on its November 6th, 2026 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
10/27/2026 Bought 100 NVIDIA Corporation shares at $217.67.

10/27/2026 Sold 1 NVIDIA 11/6/2026 $217.50 Call option @ $5.35 per share.  The Implied Volatility of this Call option was 35.8 when this position was established.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,232.67
= ($217.67 - $5.35) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$534.33
= ($5.35 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $217.50 strike price at expiration): -$17.00
+($217.50 strike price - $217.67 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $217.50 strike price at the options expiration date): +$517.33
= (+$534.33 option income + $0.00 dividend income - $17.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.4%
= +$517.33/$21,232.67
Potential Annualized Return-on-Investment: +88.9%
= (+$517.33/$21,232.67) * (365/10 days)