Established Covered Call in Coinbase Global Inc.

This afternoon I established a short-term Covered Call position in Coinbase Global Inc. (ticker COIN).  Coinbase is the leading cryptocurrency exchange platform in the U.S. for both retail and institutional clients.  My net buy/write limit order at $308.32 was executed by simultaneously purchasing one hundred shares at $331.45 and selling one October 3rd, 2025 weekly Call option at the $315.00 strike price at $23.13 per share, which provides a $6.68 per share = [$23.13 Call option premium received - ($331.45 stock purchase price - $315.00 option strike price)] maximum time value profit potential.  A moderately in-the-money Covered Call position was established and the probability that these shares will close in-the-money on the options expiration date was 67.1%.  The next quarterly earnings report on November 5th, 2025 is after the October 3rd options expiration date.

As detailed below, a potential return-on-investment result is +2.2% absolute return-on-investment (equivalent to +71.8% annualized return-on-investment for the next 11 days) if the Coinbase Global Inc. share price is in-the-money (i.e. above the $315.00 strike price) and therefore assigned on its October 3rd, 2025 options expiration date.  

Coinbase Global Inc. (COIN) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
9/22/2025 Bought 100 Coinbase Global Inc. shares at $331.45.

9/22/2025 Sold 1 COIN 10/3/2025 $315.00 Call option @ $23.13 per share.  The Implied Volatility of this Call option was 59.7% when this position was established.  

A possible overall performance result (including commissions) for this Coinbase Global Inc. Covered Call position is as follows:
Covered Calls Net Investment: $30,832.67
= ($331.45 - $23.13) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$2,312.33
= ($23.13 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 Coinbase shares assigned at the $315.00 strike price at expiration): -$1,645.00

+($315.00 strike price - $331.45 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 COIN shares are in-the-money and therefore assigned at the $315.00 strike price at the options expiration date): +$667.33
= (+$2,312.33 option income + $0.00 dividend income - $1,645.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.2%
= +$667.33/$30,832.67
Potential Annualized Return-on-Investment: +71.8%
= (+$667.33/$30,832.67) * (365/11 days)

September 19th, 2025 Monthly Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with September 19th, 2025 monthly options expirations and all three positions closed with their stock prices in-the-money. The Calls expired today with no remaining value and the Covered Calls were closed out by the stocks being sold at their respective strike prices, so the maximum potential return-on-investment profit on their options expiration dates was achieved for these three positions.  The return-on-investment details for each position is as follows:

1. DICK'S Sporting Goods, Inc. (DKS) -- +1.5% absolute return-on-investment (equivalent to +53.9% annualized return-on-investment) for the 10 days of this investment.  This DICK'S Covered Calls position had a $215.00 strike price and it closed at $221.95 today.  The original blog post showing the details of this position is here. 

2. Fiserv Inc. (FI) -- +1.2% absolute return-on-investment (equivalent to +48.4% annualized return-on-investment) for the 9 days of this investment.  This Fiserv position had a $130.00 strike price and it closed at $131.80 today.  The blog post showing the details of this position is here.

3. Nvidia Corporation (NVDA) -- +1.1% absolute return-on-investment (equivalent to +51.7% annualized return-on-investment) for the 8 days of this investment.  This NVIDIA position had a $172.50 strike price and it closed at $176.60 today.  The blog post showing the details of this position is here. 

As always, I welcome your questions at the email address shown below on any topics related to the Covered Calls investing strategy. 

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls in iShares Bitcoin ETF

Today I established a short-term Covered Calls position in iShares Bitcoin ETF (ticker IBIT).  My net buy/write limit order at $61.90 was executed by simultaneously purchasing two hundred shares at $65.43 and selling two September 26th, 2025 weekly Call options at the $62.50 strike price at $3.53 per share, which provides a $.60 per share = [$3.53 Call options premium received - ($65.43 stock purchase price - $62.50 options strike price)] maximum time value profit potential.  A moderately in-the-money Covered Calls positions was established and the probability that these ETF shares will close in-the-money on the options expiration date was 76.0%.  

The iShares Bitcoin ETF (ticker IBIT) is the largest Bitcoin ETF and it provides direct exposure to the spot price of Bitcoin. It was launched in January 2024 as one of the first U.S.-listed spot Bitcoin ETFs approved by the SEC.  IBIT is a good way for us retail investors to gain exposure to Bitcoin since it holds actual Bitcoin in custody (not futures contracts), thus enabling us to gain exposure to Bitcoin’s price movements through a traditional brokerage account without having to buy or store Bitcoin ourselves (and at a reasonably low annual management fee of .25%).      

As detailed below, a potential return-on-investment result is +1.0% absolute return-on-investment (equivalent to +35.0% annualized return-on-investment for the next 10 days) if the iShares Bitcoin ETF share price is in-the-money (i.e. above the $62.50 strike price) and therefore assigned on its September 26th, 2025 options expiration date.  

iShares Bitcoin ETF (IBIT) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
9/16/2025 Bought 200 iShares Bitcoin ETF shares at $65.43.

9/16/2025 Sold 2 IBIT 9/26/2025 $62.50 Call options @ $3.53 per share.  The Implied Volatility of these Calls was 37.6% when this position was established.  

A possible overall performance result (including commissions) for this iShares Bitcoin ETF Covered Calls position is as follows:
Covered Calls Net Investment: $12,381.34
= ($65.43 - $3.53) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$704.66
= ($3.53 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 iShares Bitcoin ETF shares assigned at the $62.50 strike price at expiration): -$586.00
+($62.50 strike price - $65.43 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 IBIT shares are in-the-money and therefore assigned at the $62.50 strike price at the options expiration date): +$118.66
= (+$704.66 options income + $0.00 dividend income - $586.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.0%
= +$118.66/$12,381.34
Potential Annualized Return-on-Investment: +35.0%
= (+$118.66/$12,381.34) * (365/10 days)

Established Covered Calls in NVIDIA Corporation

This morning a short-term Covered Calls position was established in NVIDIA Corporation (ticker NVDA).  My net buy/write limit order at $167.96 was executed by simultaneously purchasing two hundred shares at $176.24 and selling two September 26th, 2025 weekly Call options at the $170.00 strike price at $8.28 per share, which provides a $2.04 per share = [$8.28 Call options premium received - ($176.24 stock purchase price - $170.00 options strike price)] time value profit potential.  This is the second Covered Calls position in my current portfolio; the first position at the $172.50 strike price has an expiration date this Friday.  A moderately in-the-money Covered Calls positions was established for my new position with the probability that NVIDIA's stock will close in-the-money on the options expiration date was 71.0%.  As preferred, the next earnings report on November 19th, 2025 is after the September 26th options expiration date. 

As detailed below, a potential return-on-investment result is +1.2% absolute return-on-investment (equivalent to +44.2% annualized return-on-investment for the next 10 days) if NVIDIA's share price is in-the-money (i.e. above the $170.00 strike price) and therefore assigned on its Sept 26th, 2025 options expiration date.  

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
9/16/2025 Bought 200 NVIDIA Corporation shares at $176.24.

9/16/2025 Sold 2 NVIDIA 9/26/2025 $170.00 Call options @ $8.28 per share.  The Implied Volatility of these Calls was 37.8% when this position was established.  

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $33,593.34
= ($176.24 - $8.28) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,654.66
= ($8.28 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned at the $170.00 strike price at expiration): -$1,248.00
+($170.00 strike price - $176.24 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares in-the-money and therefore assigned at the $170.00 strike price at the options expiration date): +$406.66
= (+$1,654.66 options income + $0.00 dividend income - $1,248.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.2%
= +$406.66/$33,593.34
Potential Annualized Return-on-Investment: +44.2%
= (+$406.66/$33,593.34) * (365/10 days)