This position uses my Dividend Capture Strategy (see details here) since there is an upcoming quarterly ex-dividend of $.5107 per share (annual dividend yield of 1.0%) on April 1st, 2026 which is prior to the April 10th options expiration date, so two potential return-on-investment results detailed below for this position includes this dividend income.
As detailed below, two potential return-on-investment results are: (1) +1.4% absolute return-on-investment (equivalent to +56.1% annualized return-on-investment over the next 9 days) if the stock is assigned on the day prior to the April 1st ex-dividend date; or (2) +1.6% absolute return-on-investment (equivalent to +33.4% annualized return-on-investment over the next 18 days) if the stock is assigned on the April 10th, 2026 options expiration date.
Cardinal Health Inc. (CAH) -- New Covered Call Position
The buy/write transaction today was as follows:
3/23/2026 Bought 100 Cardinal Health Inc. shares @ $206.35
3/23/2026 Sold 1 Cardinal Health 4/10/2026 $197.50 Call option @ $11.55 per share. The implied volatility of this Call was 33.3 when this transaction was executed.
4/1/2026 Upcoming quarterly ex-dividend of $.5107 per share
Two potential overall performance results (including commissions) for this Cardinal Health Covered Call position are as follows:
Covered Call Cost Basis: $19,480.67
= ($206.35 - $11.55) * 100 shares + $.67 commission
Net Profit Components:
(a) Option Income: +$1,154.33
= ($11.55 * 100 shares) - $.67 commissions
(b) Dividend Income (If CAH shares assigned on the day prior to the April 1st ex-dividend date): +$0.00
(b) Dividend Income (If CAH shares assigned at the April 10th, 2026 options expiration date): +$51.07
= ($.5107 dividend per share x 100 shares)
At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position. As shown below with this Cardinal Health Inc. position, all nine criteria are met.
As preferred by the Covered Calls Advisor, Cardinal Health's next quarterly earnings report on April 30th, 2026 will be after the April 10th options expiration date. Given the Covered Calls Advisor's current Overall Market Meter indicator of Neutral, an in-the-money Covered Call position was established when the probability the stock is in-the-money on the options expiration date was 71.6%.
Cardinal Health is part of an oligopoly (along with McKesson and Cencora) that controls about 90% of U.S. drug and medical products distribution to hospitals, pharmacies, and health systems.
Cardinal Health was the #1 ranked company (of only 16 total companies that met all criteria) in my custom Stock Rover stock screener using metrics obtained from O'Shaughnessy's book titled "What Works on Wall Street". The details are: 
As detailed below, two potential return-on-investment results are: (1) +1.4% absolute return-on-investment (equivalent to +56.1% annualized return-on-investment over the next 9 days) if the stock is assigned on the day prior to the April 1st ex-dividend date; or (2) +1.6% absolute return-on-investment (equivalent to +33.4% annualized return-on-investment over the next 18 days) if the stock is assigned on the April 10th, 2026 options expiration date.
The buy/write transaction today was as follows:
3/23/2026 Bought 100 Cardinal Health Inc. shares @ $206.35
3/23/2026 Sold 1 Cardinal Health 4/10/2026 $197.50 Call option @ $11.55 per share. The implied volatility of this Call was 33.3 when this transaction was executed.
4/1/2026 Upcoming quarterly ex-dividend of $.5107 per share
Two potential overall performance results (including commissions) for this Cardinal Health Covered Call position are as follows:
Covered Call Cost Basis: $19,480.67
= ($206.35 - $11.55) * 100 shares + $.67 commission
Net Profit Components:
(a) Option Income: +$1,154.33
= ($11.55 * 100 shares) - $.67 commissions
(b) Dividend Income (If CAH shares assigned on the day prior to the April 1st ex-dividend date): +$0.00
(b) Dividend Income (If CAH shares assigned at the April 10th, 2026 options expiration date): +$51.07
= ($.5107 dividend per share x 100 shares)
(c) Capital Appreciation (If Cardinal Health shares assigned on the day prior to the April 1st ex-dividend date): -$885.00
+($197.50 strike price - $206.35 stock purchase price) * 100 shares
(c) Capital Appreciation (If Cardinal Health shares assigned at the $197.50 strike price on the 4/10/2026 options expiration date): -$885.00
+($197.50 strike price - $206.35 stock purchase price) * 100 shares
+($197.50 strike price - $206.35 stock purchase price) * 100 shares
1. Total Net Profit (If Cardinal Health shares assigned on the day prior to the April 1st ex-dividend date): +$269.33
= (+$1,154.33 option income + $0.00 dividend income - $885.00 capital appreciation)
2. Total Net Profit (If Cardinal Health shares assigned at the April 10th, 2026 options expiration date): +$320.40
= (+$1,154.33 option income + $51.07 dividend income - $885.00 capital appreciation)
1. Potential Absolute Return-on-Investment (If Cardinal Health shares assigned on the day prior to the April 1st ex-dividend date) : +1.4%
= +$269.33/$19,480.67
Potential Annualized Return-on-Investment: +56.1%
= (+$269.33/$19,480.67) * (365/9 days)
2. Potential Absolute Return-on-Investment (If Cardinal Health shares assigned at the April 10th, 2026 options expiration date): +1.6%
= +$320.40/$19,480.67
Potential Annualized Return-on-Investment: +33.4%
= (+$320.40/$19,480.67) * (365/18 days)
At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position. As shown below with this Cardinal Health Inc. position, all nine criteria are met.
