Continuation of Covered Call Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Call position in NVIDIA Corporation (ticker NVDA) with 100 shares which expired last Friday with the stock at $214.13 which was below the $230.00 strike price. Today this position was continued by rolling down-and-out to the October 30th, 2026 options expiration date at the $225.00 strike price by selling-to-open one NVDA Call at $3.30 per share today when NVIDIA's stock price was $220.76.  As preferred, the next NVIDIA quarterly earnings report is not until November 17th, which is after the October 30th, 2026 options expiration date. 

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the October 30th, 2026 options expiration date is +0.1% absolute return-on-investment over 23 days (equivalent to +2.1% annualized-return-on-investment) if the stock closes above the $225.00 strike price on the 10/30/2026 options expiration date. The details showing this potential return-on-investment result are as follows:

NVIDIA Corporation (NVDA) -- Continuation of Covered Call Position

The original buy/write net debit limit order transaction was as follows:

10/7/2026 Bought 100 NVIDIA Corporation shares at $236.93.

10/7/2026 Sold 1 NVIDIA 10/16/2026 $230.00 Call option @ $8.95 per share.  The Implied Volatility of this Call option was 30.9 when this position was established.

10/16/2026 One hundred NVIDIA shares closed below the $230.00 strike price at $214.13, so the Call option expired and the 100 NVIDIA shares remained in the Covered Calls Advisor Portfolio.

10/21/2026 Continued this NVIDIA Covered Call position by selling-to-open 1 October 30th, 2026 $225.00 Call option at $3.30 per share when the NVDA stock was trading at $220.76 per share.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position if the stock is in-the-money and therefore assigned on the 10/30/2026 options expiration date is as follows:

Covered Call Net Investment: $22,798.67
= ($236.93 - $8.95) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,223.66
= ($8.95 + $3.30) * 100 shares) - $1.34 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $225.00 strike price at expiration): -$1,193.00
+($225.00 strike price - $236.93 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $225.00 strike price at the options expiration date): +30.66
= (+$1,223.66 option income + $0.00 dividend income - $1,193.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.1%
= +$30.66/$22,798.67
Potential Annualized Return-on-Investment: +2.1%
= (+$30.66/$22,798.67) * (365/23 days)

Continued Covered Calls Position in Pan American Silver Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in Pan American Silver Corporation (ticker PAAS) which expired last Friday with the stock at $53.94 which was well below the $60.00 strike price.  Today I am attempting to repair this now losing position back close to breakeven by continuing this Covered Calls position. This morning, I rolled down-and-out to the June 12th, 2026 options expiration date at the $56.00 strike price by selling-to-open three Calls at $2.50 per share against the 300 PAAS shares currently held when the price of Pan American's stock was $55.32.  

As detailed below, a potential outcome for this Pan American Silver Corporation investment if the stock is in-the-money and therefore assigned on the options expiration date is -0.2% absolute return-on-investment over 31 days (equivalent to -2.7% annualized-return-on-investment) if the stock closes above the $56.00 strike price on the June 12th, 2026 options expiration date.   

 

Pan American Silver Corporation (PAAS) -- Continuation of Covered Calls Position

The buy/write transaction was:

5/12/2026 Bought 300 Pan American Silver shares @ $62.50
5/12/2026 Sold 3 PAAS 5/22/2026 $60.00 Call options @ $3.70 per share.
Note: Implied Volatility (IV) of the Call options was at 54.0 when this position was transacted which, as preferred, is above the current VIX of 18.3.  The probability that these Call options will expire in-the-money on the options expiration date was 64.2% when this position was established.   
5/19/2026 Quarterly ex-dividend of $.18 per share.

5/22/2026 Three Pan American Silver $60.00 Calls expired out-of-the-money, so the 300 shares remained in the Covered Calls Advisor Portfolio.
5/26/2026 Continued Covered Calls position by rolling down-and-out by selling-to-open three 6/12/2026 $56.00 Calls at $2.50 per share when the price of PAAS stock was at $55.32.

A possible overall performance result (including commissions) if this Covered Calls position is in-the-money on the 6/12/2026 options expiration date is as follows:
Pan American Silver Corp. Covered Calls Net Investment: $17,642.01

= ($62.50 - $3.70) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,855.98
= ($3.70 + $2.50) * 300 shares - $4.02 commissions
(b) Dividend Income: +$54.00
= ($.18 dividend per share x 300 shares)

(c) Capital Appreciation (If shares assigned at the $56.00 strike price at the 6/12/2026 options expiration): -$1,950.00 = +($56.00 strike price - $62.50 stock purchase price) * 300 shares

Potential Total Net Profit (If in-the-money and therefore assigned at expiration): -$40.02
= (+1,855.98 options income + $54.00 dividend income - $1,950.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 6/12/2026 options expiration date): -0.2% = -$40.02/$17,642.01

Potential Equivalent Annualized-Return-on-Investment: -2.7% 

= (-$40.02/$17,642.01) x (365/31 days)

Continued Covered Calls Position in IBM Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in IBM Corporation (ticker IBM) which expired last Friday with the stock at $219.30 which was below the $225.00 strike price.  Today this position was continued by rolling down-and-out to the May 29th, 2026 options expiration date at the $225.50 strike price by selling-to-open two Calls at $5.60 per share when the price of IBM's stock was $222.78.  

As detailed below, a potential outcome for this IBM Covered Calls investment if the stock is in-the-money and therefore assigned on the options expiration date is +3.1% absolute return-on-investment over 25 days (equivalent to +45.0% annualized-return-on-investment) if the stock closes above the $222.50 strike price on the 5/29/2026 options expiration date. 

IBM Corporation (IBM) -- Continuation of Covered Calls Position
The buy/write transaction was:
5/4/2026 Bought 200 IBM shares @ $231.90
5/4/2026 Sold 2 IBM 5/15/2026 $225.00 Call options @ $9.00.  The Implied Volatility of the Calls was 32.3 when this transaction occurred.
5/8/2026 Quarterly ex-dividend of $1.69 per share
5/15/2026 Two IBM Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
5/18/2026 Continued Covered Calls position by selling-to-open two 5/29/2026 $222.50 Calls at $5.60 per share when the price of IBM stock was at $222.78.

A possible overall performance result (including commissions) for this IBM Covered Calls position if the stock price is in-the-money on the 5/29/2026 options expiration date is as follows:
Covered Calls Net Investment: $44,581.34
= ($231.90 - $9.00) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,917.32
= ($9.00 +5.60) * 200 shares - $2.68 commission
(b) Dividend Income: +$338.00
= ($1.69 dividend per share x 200 shares)
(c) Capital Appreciation (If shares assigned at $222.50 strike price at the 5/29/2026 options expiration date): -$1,880.00 = +($222.50 strike price - $231.90 stock purchase price) * 200 shares

Potential Total Net Profit (If IBM shares assigned at $222.50 at the May 29th expiration): +$1,375.32

= (+$2,917.32 options income + $338.00 dividend income - $1,880.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.1%

= +$1,375.32/$44,581.34

Potential Annualized Return-on-Investment: +45.0%

= (+$1,375.32/$44,581.34) * (365/25 days)

Continuation of Covered Calls Positions in Bank of America Corporation and The Cigna Group

The Covered Calls Advisor Portfolio had two Covered Calls positions with March 27th, 2026 (last Friday) options expiration dates.  Both positions (Bank of America Corporation and The Cigna Group) closed out-of-the-money so their Calls expired and the shares remained in the Covered Calls Advisor Portfolio.

This morning I decided to extend both of these Covered Calls positions by two weeks by selling April 11th, 2026 Call options against the shares currently held in the Covered Calls Advisor Portfolio.  

As detailed below, the potential return-on-investment results if the stocks close in-the-money on their April 10th expiration date are:

1. Bank of America Corporation -- +1.9% absolute return-on-investment (equivalent to +13.9% annualized roi) for the 49 days of this investment.

2. The Cigna Group -- +3.4% absolute return-on-investment (equivalent to +24.8% annualized roi) for the 50 days of this investment.

The details for these positions are as follows:

1. Bank of America Corporation (BAC) -- Continuation of this Covered Calls Position

The buy/write transaction was as follows:
2/20/2026 Bought 500 shares of Bank of America Corp. stock @ $51.91 per share 
2/20/2026 Sold 5 BAC March 13th, 2026 $50.00 Call options @ $2.61 per share
Note: The Implied Volatility of these Calls was 30.2 when this position was established.
3/6/2026 Ex-dividend of $.28 per share
3/13/2026 Bank of America stock closed out-of-the-money at $46.72 (i.e. below the $50.00 strike price), so the Call options expired and the 500 shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 5 March 27th, 2026 $47.50 Call options at $1.08 per share when the stock price was trading at $47.39.  The Implied Volatility of these Calls was 34.4% when this transaction was made.

3/27/2026 Bank of America stock closed out-of-the-money at $46.97 (i.e. below the $47.50 strike price), so the Call options expired and the 500 shares remain in the Covered Calls Advisor Portfolio.
3/30/2026 Continued this Covered Calls position by selling 5 April 10th, 2026 $47.50 Call options at $1.38 per share when the stock price was trading at $47.81.  The Implied Volatility of these Calls was 37.4% when this transaction was made.

A possible overall performance result (including commissions) if the stock is assigned on the 4/10/2026 options expiration date would be as follows:
Covered Calls Cost Basis: $24,653.35
= ($51.91 - $2.61) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$2,524.95
= ($2.61 + $1.08 + $1.38) * 500 shares - $10.05 commissions
(b) Dividend Income: +$140.00
= $.28 per share x 500 shares
(c) Capital Appreciation (If shares above the $47.50 strike price at the April 10th options expiration): -$2,205.00
= ($47.50 - $51.91) * 500 shares

Potential Net Profit (If BAC price is above the $47.50 strike price at the April 10th options expiration): +$459.95
= (+$2,524.95 options income + $140.00 dividend income - $2,205.00 capital appreciation)

Absolute Return-on-Investment (If BAC price is above $47.50 strike price at the April 10th options expiration): +1.9% = +$459.95/$24,653.35
Equivalent Annualized Return-on-Investment (If assigned on the 4/10/2026 options expiration date): +13.9%
= (+$459.95/$24,653.35) * (365/49 days)

2. The Cigna Group (CI) -- Continuation of this Covered Call Positionon

The buy/write transaction today was as follows:
2/19/2026 Bought 100 Cigna Group shares @ $287.06
2/19/2026 Sold 1 Cigna 3/13/2026 $275.00 Call option @ $15.56 per share.  
3/5/2026 Upcoming quarterly ex-dividend of $1.56 per share

3/13/2026 The Cigna Group stock closed out-of-the-money at $267.19 (i.e. below the $275.00 strike price), so the Call option expired and the 100 Cigna shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Call position by selling 1 March 27th, 2026 $270.00 Call option at $6.70 per share when the stock price was trading at $269.45.  The Implied Volatility of this Call options was 38.4% when this transaction was made.

3/27/2026 The Cigna Group stock closed out-of-the-money at $261.96 (i.e. below the $270.00 strike price), so the Call option expired and the 100 Cigna shares remain in the Covered Calls Advisor Portfolio.
3/30/2026 Continued this Covered Call position by selling 1 April 10th, 2026 $265.00 Call option at $7.48 per share when the stock price was trading at $263.37.  The Implied Volatility of this Call options was 44.5% when this transaction was made.

A possible overall performance result (including commissions) if this Cigna Covered Call position is in-the-money on its 4/10/2026 expiration date is as follows:
Covered Call Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commissions

Net Profit Components:
(a) Option Income: +$2,971.99
= ($15.56 +6.70 + $7.48) * 100 shares - $2.01 commissions
(b) Dividend Income: +$156.00
= ($1.56 dividend per share x 100 shares)

(c) Capital Appreciation (If Cigna shares assigned at the $265.00 strike price at the 4/10/2026 options expiration date): -$2,206.00

+($265.00 - $287.06) * 100 shares

Total Net Profit (If Cigna shares assigned at the April 10th, 2026 options expiration date): +$921.99

= (+$2,971.99 option income + $156.00 dividend income - $2,206.00 capital appreciation)

Potential Absolute Return-on-Investment (If Cigna shares assigned at the April 10th, 2026 options expiration date): +3.4%

= +$921.99/$27,150.67

Potential Annualized Return-on-Investment: +24.8%

= (+$921.99/$27,150.67) *(365/50 days)

Rolled Out Covered Calls Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in NVIDIA Corporation (ticker NVDA) with 200 shares with an options expiration date this Friday.  The current position had a strike price of $185.00 and this morning when the stock was at $178.76, I decided to roll the Covered Calls down-and-out to the April 10th, 2026 $175.00 strike price.  The diagonal spread transaction was buying-to-close the two 3/27/2026 $185.00 Calls at $.24 per share and simultaneously selling-to-open the two 4/10/2026 $175.00 Calls at $7.65 per share for a net credit of $7.41 per share (i.e. $7.65 - $.24).  As preferred, the next NVIDIA quarterly earnings report is not until May 20th, which is after the April 10th, 2026 options expiration date. 

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the April 10th, 2026 options expiration date is +6.7% absolute return-on-investment over 42 days (equivalent to +58.2% annualized-return-on-investment) if the stock closes above the $175.00 strike price on the 4/10/2026 options expiration date. The details showing this potential return-on-investment result are as follows:

NVIDIA Corporation (NVDA) -- Continuation of Covered Calls Position

The original buy/write net limit order transaction was as follows:
2/27/2026 Bought 200 NVIDIA Corporation shares at $180.02.

2/27/2026 Sold 2 NVIDIA 3/13/2026 $185.00 Call options @ $4.35 per share.  The Implied Volatility of these Calls was 44.8 when this position was established, well above (as preferred) the VIX which was at 20.7.  
3/11/2026 Ex-dividend of $.01 per share.  This miniscule dividend amount for the largest market cap company is ludicrous. 🤣

3/13/2026 NVIDIA Corporation stock closed out-of-the-money at $180.25 (i.e. below the $185.00 strike price), so the Call options expired and the 200 NVIDIA shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 2 March 27th, 2026 $185.00 Call options at $5.20 per share when the stock price was trading at $184.09.  The Implied Volatility of these Calls was 42.6% when this transaction was made.

3/25/2026 Continued this NVDA Covered Calls position by a simultaneous diagonal spread transaction of rolling down-and-out from the 3/27/2026 $185.00s to the 4/10/2026 $175.00s at a net credit of $7.41 per share.

A possible overall performance result (including commissions) if this NVIDIA Corporation Covered Calls position is in-the-money on its 4/10/2026 expiration date is as follows:
Covered Calls Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$3,356.64
= ($4.35 + $5.05 - $.24 + $7.65) x 200 shares) - $5.36 commissions
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $175.00 strike price) on the 4/10/2026 options expiration date): -$1,004.00
+($175.00 strike price - $180.02 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $175.00 strike price on the 4/10/2026 options expiration date): +$2,354.64

= (+$3,356.64 options income + $2.00 dividend income - $1,004.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $175.00 strike price on the 4/10/2026 options expiration date): +6.7%

= (+$2,354.64/$35,135.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $175.00 strike price on the 4/10/2026 options expiration date): +58.2%

= (+$2,354.64/$35,135.34) * (365/42 days)

Continuation of Covered Calls Positions in Bank of America, NVIDIA, and Cigna

The Covered Calls Advisor Portfolio had three Covered Calls positions with March 13th, 2026 (last Friday) options expiration dates.  All three positions (Bank of America Corporation, NVIDIA Corporation, and The Cigna Group) closed out-of-the-money so their Calls expired and the shares remained in the Covered Calls Advisor Portfolio.

This morning I decided to extend all three of these Covered Calls positions by two weeks by selling March 27th, 2026 Call options against the shares currently held in the Covered Calls Advisor Portfolio.  

As detailed below, the potential return-on-investment results if the stocks close in-the-money on their March 27th expiration date are:

1. Bank of America Corporation -- -0.9% absolute return-on-investment (equivalent to -9.6% annualized roi) for the 35 days of this investment.

2. NVIDIA Corporation -- +8.2% absolute return-on-investment (equivalent to +106.7% annualized roi) for the 28 days of this investment.

3. The Cigna Group -- +2.5% absolute return-on-investment (equivalent to +25.2% annualized roi) for the 36 days of this investment.

The details for each of these three positions (in alphabetical order) are as follows:

1. Bank of America Corporation (BAC) -- Continuation of this Covered Calls Position

The buy/write transaction was as follows:
2/20/2026 Bought 500 shares of Bank of America Corp. stock @ $51.91 per share 
2/20/2026 Sold 5 BAC March 13th, 2026 $50.00 Call options @ $2.61 per share
Note: The Implied Volatility of these Calls was 30.2 when this position was established.
3/6/2026 Ex-dividend of $.28 per share
3/13/2026 Bank of America stock closed out-of-the-money at $46.72 (i.e. below the $50.00 strike price), so the Call options expired and the 500 shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 5 March 27th, 2026 $47.50 Call options at $1.08 per share when the stock price was trading at $47.39.  The Implied Volatility of these Calls was 34.4% when this transaction was made.

A possible overall performance result (including commissions) if the stock is assigned on the 3/27/2026 options expiration date would be as follows:
Covered Calls Cost Basis: $24,653.35
= ($51.91 - $2.61) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,838.30
= ($2.61 + $1.08) * 500 shares - $6.70 commissions
(b) Dividend Income: +$140.00
= $.28 per share x 500 shares
(c) Capital Appreciation (If shares above the $47.50 strike price at the March 27th options expiration): -$2,205.00
= ($47.50 - $51.91) * 500 shares

Potential Net Loss (If BAC price is above the $47.50 strike price at the March 27th options expiration): -$226.70
= (+$1,838.30 options income + $140.00 dividend income - $2,205.00 capital appreciation)

Absolute Return-on-Investment (If BAC price is above $47.50 strike price at the March 27th options expiration): -0.9%   = -$226.70/$24,653.35
Equivalent Annualized Return-on-Investment (If assigned on the 3/27/2026 options expiration date): -9.6%
= (-$226.70/$24,653.35) * (365/35 days)

2. NVIDIA Corporation (NVDA) -- Continuation of this Covered Calls Position

Today's buy/write net limit order transaction was as follows:
2/27/2026 Bought 200 NVIDIA Corporation shares at $180.02.

2/27/2026 Sold 2 NVIDIA 3/13/2026 $185.00 Call options @ $4.35 per share.  The Implied Volatility of these Calls was 44.8 when this position was established, well above (as preferred) the VIX which was at 20.7.  
3/11/2026 Ex-dividend of $.01 per share.  This miniscule dividend amount for the largest market cap company is ludicrous. 🤣

3/13/2026 NVIDIA Corporation stock closed out-of-the-money at $180.25 (i.e. below the $185.00 strike price), so the Call options expired and the 200 NVIDIA shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 2 March 27th, 2026 $185.00 Call options at $5.20 per share when the stock price was trading at $184.09.  The Implied Volatility of these Calls was 42.6% when this transaction was made.

A possible overall performance result (including commissions) if this NVIDIA Corporation Covered Calls position is in-the-money on its 3/27/2026 expiration date is as follows:
Covered Calls Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,877.32
= ($4.35 + $5.05) x 200 shares) - $2.68 commissions
(b) Dividend Income: +$2.00 = $.01 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $185.00 strike price) on the 3/27/2026 options expiration date): +$996.00
+($185.00 strike price - $180.02 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $185.00 strike price on the 3/27/2026 options expiration date): +$2,875.32

= (+$1,877.32 options income + $2.00 dividend income + $996.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $185.00 strike price on the 3/27/2026 options expiration date): +8.2%

= (+$2,875.32/$35,135.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $185.00 strike price on the 3/11/2026 options expiration date): +106.7%

= (++$2,875.32/$35,135.34) * (365/28 days)

3. The Cigna Group (CI) -- Continuation of this Covered Call Positionon

The buy/write transaction today was as follows:
2/19/2026 Bought 100 Cigna Group shares @ $287.06
2/19/2026 Sold 1 Cigna 3/13/2026 $275.00 Call option @ $15.56 per share.  
3/5/2026 Upcoming quarterly ex-dividend of $1.56 per share

3/13/2026 The Cigna Group stock closed out-of-the-money at $267.19 (i.e. below the $275.00 strike price), so the Call option expired and the 100 Cigna shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Call position by selling 1 March 27th, 2026 $270.00 Call option at $6.70 per share when the stock price was trading at $269.45.  The Implied Volatility of this Call options was 38.4% when this transaction was made.

A possible overall performance result (including commissions) if this Cigna Covered Call position is in-the-money on its 3/27/2026 expiration date is as follows:
Covered Call Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commissions

Net Profit Components:
(a) Option Income: +$2,224.66
= ($15.56 +6.70) * 100 shares - $1.34 commissions
(b) Dividend Income: +$156.00
= ($1.56 dividend per share x 100 shares)

(c) Capital Appreciation (If Cigna shares assigned at the $270.00 strike price at the options expiration): -$1,706.00

+($270.00 - $287.06) * 100 shares

Total Net Profit (If Cigna shares assigned at the March 27th, 2026 options expiration date): +$674.66

= (+$2,224.66 option income + $156.00 dividend income - $1,706.00 capital appreciation)

Potential Absolute Return-on-Investment (If Cigna shares assigned at the March 27th, 2026 options expiration date): +2.5%

= +$674.66/$27,150.67

Potential Annualized Return-on-Investment: +25.2%

= (+$674.66/$27,150.67) *(365/36 days)

Continuation of Covered Calls Position in Sea Limited ADR

My Covered Calls position in Sea Limited ADR (ticker SE) closed out-of-the-money on last Friday's options expiration date, so the Call options expired and the shares remained in the Covered Calls Advisor Portfolio.  This morning, I decided to continue this Covered Calls position by selling two Sea Limited Call options against the shares currently held.  The transactions-to-date for these positions as well as the potential return-on-investment results if this position is in-the-money and therefore assigned on its options expiration date is as follows:

Sea Limited ADR (SE) -- Continued this Covered Calls Position
The original simultaneous buy/write transaction was as follows:
12/1/2025 Bought 200 Sea Ltd. shares @ $137.15
12/1/2025 Sold 2 SE 12/19/2025 $130.00 Call options @ $9.65 per share
Note: the Implied Volatility of the Calls was 43.0 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.2.
12/19/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/26/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $2.38 per share when the price of Sea Ltd. stock was at $126.96.
1/9/2026 Sea Ltd. Covered Calls rolled out by buying-to-close the two 1/9/2026 $130.00 Calls at $4.25 per share and simultaneously selling two 1/23/2026 $130.00 Calls at $6.70 per share, so a net credit of $2.45 per share.
1/23/2026 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
1/27/2026 Continued Covered Calls position by selling-to-open two 2/6/2026 $127.00 Calls at $3.30 per share when the price of Sea Ltd. stock was at $125.41.
2/6/2026 Two Sea Ltd. Calls expired out-of-the-money at $108.54, so the 200 shares remained in the Covered Calls Advisor Portfolio.
2/9/2026 Continued Covered Calls position by selling-to-open two 2/20/2026 $110.00 Calls at $3.90 per share when the price of Sea Ltd. stock was at $109.35.  This Covered Calls position is being continued because I remain bullish on the company and am now attempting to reduce the current unrealized loss and improve the position results closer to breakeven. 

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if the stock price is in-the-money and therefore assigned at the $110.00 strike price on the options expiration date is as follows:

Covered Calls Cost Basis: $25,501.34
= ($137.15 - $9.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$4,329.30
= ($9.65 + $2.38 - $4.25 + $6.70 + $3.30 + $3.90) * 200 shares - $6.70 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $110.00 strike price at the 2/20/2026 options expiration date): -$5,430.00
+($110.00 strike price - $137.15 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $110.00 strike price on the 2/20/2026 options expiration date): -$1,100.70

= (+$4,329.30 options income + $0.00 dividend income - $5,430.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $110.00 strike price on the 2/20/2026 options expiration date): -4.3%

= -$1,100.70/$25,501.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $110.00 strike price at the 2/20/2026 options expiration date): -19.4%

= (-$1,100.70/$25,501.34) * (365/81 days)

Continuation of Covered Calls Positions in Dell Technologies Inc. and Lowe's Companies Inc.

My Covered Calls positions in Dell Technologies Inc. and Lowe's Companies Inc. both had options expiration dates today.  Both positions were out-of-the-money this afternoon and I decided to continue both Covered Call positions by buying-to-close the Call options expiring today and selling-to-open new Calls against the shares currently held.  For the 200 shares of Dell, I rolled down-and-out from today's $125.00 strike price for one additional week to the February 6th, 2025 $115.00 strike price.  For the 100 shares of Lowe's, I rolled down-and-out from today's $270.00 strike price to the February 13th, 2025 $265.00 strike price.  The detailed transactions for these ongoing Covered Call positions are provided below.

  

1. Dell Technologies Inc. (DELL) -- Continuation of Covered Calls Position

The net debit buy/write limit order was executed as follows:

12/11/2025 Bought 200 shares of Dell Technologies stock @ $136.00 per share.  
12/11/2025 Sold 2 DELL December 26th, 2025 $130.00 Call options @ $8.40 per share.  Note: the Implied Volatility of the Calls was 44.1% when this position was established.  
12/26/2025 Two Dell Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/29/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $3.00 per share when the price of Dell stock was at $128.10.

1/9/2026 Two Dell 1/9/2026 $130.00 Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
1/12/2026 Continued Covered Calls position by selling-to-open two 1/30/2026 $125.00 Calls at $3.30 per share when the price of Dell stock was at $121.93.

1/30/2026 Continued Covered Calls position with a diagonal spread transaction by buying-to-close two 1/30/2026 $125.00 Calls and selling-to-open two 2/6/2026 $115.00 Calls at $2.52 per share when the price of Dell stock was at $114.08.

A possible overall performance result (including commissions) if this Covered Calls position is in-the-money on the 2/6/2026 options expiration date is as follows:
Dell Technologies Covered Calls Net Investment: $25,521.34
= ($136.00 - $8.40) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$3,438.64
= ($8.40 + $3.00 + $3.30 +2.52) * 200 shares - $5.36 commissions
(b) Dividend Income: +$105.00 = $.525 ex-div on 1/20/2026 x 200 shares
(c) Capital Appreciation (If Dell Technologies stock is above the $115.00 strike price at the February 6th options expiration date): -$4,200.00
= ($115.00 strike price - $136.00 stock purchase price) * 200 shares

Potential Total Net Profit (If in-the-money and therefore assigned at expiration): -$625.36
= (+$3,438.64 options income + $105.00 dividend income - $4,200.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 2/6/2026 options expiration date): -2.5% = -$625.36/$25,521.34

Potential Equivalent Annualized-Return-on-Investment: -15.7%
= (-$625.36/$25,521.34) x (365/57 days)

2. Lowe's Companies Inc. (LOW) -- Continuation of Covered Call Position
The buy/write transaction was:
1/16/2026 Bought 100 Lowe's Companies Inc. shares @ $276.50
1/16/2026 Sold 1 Lowe's 1/30/2026 $270.00 Call option @ $8.66 per share.
Note: Implied Volatility (IV) of the Call option was at 23.2 when this position was transacted which, as preferred, is above the current VIX of 15.5.   
1/20/2026 Upcoming quarterly ex-dividend of $1.20 per share.

1/30/2026 Continued Covered Call position with a diagonal spread transaction by buying-to-close one 1/30/2026 $270.00 Call and selling-to-open one 2/13/2026 $265.00 Call at $5.00 per share when the price of Lowe's stock was at $264.31.

A possible overall performance result (including commission) for this Lowe's Companies Inc. Covered Call position is as follows:
Covered Call Cost Basis: $26,784.67
= ($276.50 - $8.66) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,364.66
= ($8.66 + $5.00) * 100 shares - $1.34 commission
(b) Dividend Income: +$120.00 = $1.20 per share x 100 shares
= ($1.20 dividend per share x 100 shares)

(c) Capital Appreciation (If shares are in-the-money and therefore assigned at $265.00 strike price at the 2/13/2026 options expiration date): -$1,150.00

+($265.00 strike price - $276.50) * 100 shares

Total Net Profit (If Lowe's shares assigned at the $265.00 strike price at the Feb. 13th, 2026 options expiration date): +$334.66

= (+$1,364.66 option income + $120.00 dividend income - $1,150.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.2%

= +$334.66/$26,784.67

Potential Annualized Return-on-Investment: +16.3%

= (+$334.66/$26,784.67) * (365/28 days)

Continuation of Covered Calls Positions in Sea Limited ADR and Universal Health Services Inc.

My Covered Calls positions in Sea Limited ADR (ticker SE) and Universal Health Services Inc. (ticker UHS) closed out-of-the-money on their options expiration dates, so the Call options expired and the shares remained in the Covered Calls Advisor Portfolio.  This morning, I decided to continue both of these Covered Calls positions by selling Call options against the shares currently held.  The transactions-to-date for these positions as well as the potential return-on-investment results if these positions are in-the-money and therefore assigned on their respective options expiration dates are as follows:

1. Sea Limited ADR (SE) -- Rolled Out this Covered Calls Position
The original simultaneous buy/write transaction was as follows:
12/1/2025 Bought 200 Sea Ltd. shares @ $137.15
12/1/2025 Sold 2 SE 12/19/2025 $130.00 Call options @ $9.65 per share
Note: the Implied Volatility of the Calls was 43.0 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.2.
12/19/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/26/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $2.38 per share when the price of Sea Ltd. stock was at $126.96.
1/9/2026 Sea Ltd. Covered Calls rolled out by buying-to-close the two 1/9/2026 $130.00 Calls at $4.25 per share and simultaneously selling two 1/23/2026 $130.00 Calls at $6.70 per share, so a net credit of $2.45 per share.
1/23/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
1/27/2025 Continued Covered Calls position by selling-to-open two 2/6/2026 $127.00 Calls at $3.30 per share when the price of Sea Ltd. stock was at $125.41.

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if the stock price is in-the-money and therefore assigned at the $127.00 strike price on the options expiration date is as follows:

Covered Calls Cost Basis: $25,501.34
= ($137.15 - $9.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$3,549.97
= ($9.65 + $2.38 - $4.25 + $6.70 + $3.30) * 200 shares - $6.03 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $127.00 strike price at the 2/6/2026 options expiration date): -$2,030.00
+($127.00 strike price - $137.15 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $127.00 strike price on the 2/6/2026 options expiration date): +$1,519.97

= (+$3,549.97 options income + $0.00 dividend income - $2,030.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $127.00 strike price on the 2/6/2026 options expiration date): +6.0%

= +$1,519.97/$25,501.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $127.00 strike price at the 2/6/2026 options expiration date): +32.5%

= (+$1,519.97/$25,501.34) * (365/67 days)

  

2. Universal Health Services Inc. (UHS) -- Rolled Out this Covered Call Position
The simultaneous buy/write transaction today was as follows:
12/30/2025 Bought 100 Universal Health Services shares @ $225.63
12/30/2025 Sold 1 UHS 1/16/2026 $220.00 Call option @ $8.67 per share
Note: the Implied Volatility of the Call was 28.5 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 14.3.
1/16/2025 One UHS Call expired out-of-the-money, so the 100 shares remained in the Covered Calls Advisor Portfolio.
1/27/2025 Continued Covered Call position by selling-to-open one 2/20/2026 $220.00 Call at $2.80 per share when the price of Univeral Health Services stock was at $212.80.

A possible overall performance result (including commissions) for this Universal Health Services Inc. Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $21,696.67
= ($225.63 - $8.67) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,145.66
= ($8.67 + $2.80) * 100 shares - $1.34 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If Universal Health shares assigned at their $220.00 strike price at options expiration): -$563.00
+($220.00 - $225.63) * 100 shares

Total Net Profit (If Universal Health Services shares assigned at the $220.00 strike price at the 2/20/2026 expiration): +$582.66

= (+$1,145.66 option income + $0.00 dividend income - $563.00 capital appreciation)

Absolute Return-on-Investment (If UHS shares assigned at $220.00 strike price on the Feb. 20th, 2026 options expiration date): +2.7%

= +$582.66/$21,696.67

Annualized Return-on-Investment (If Universal Health Services shares assigned at $220.00 at the 2/20/2026 options expiration date): +18.9%

= (+$303.33/$21,696.67) * (365/52 days)

Continuation of Covered Call Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Call position in NVIDIA Corporation (ticker NVDA) with 100 shares which expired last Friday with the stock at $184.86 which was below the $185.00 strike price. Today this position was continued by rolling up-and-out to the January 30th, 2026 options expiration date at the $187.50 strike price by selling-to-open one NVDA Call at $5.70 per share today when NVIDIA's stock price was $186.97.  As preferred, the next NVIDIA quarterly earnings report is not until February 25th, which is after the January 30th, 2026 options expiration date. 

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the January 30th, 2026 options expiration date is +6.8% absolute return-on-investment over 32 days (equivalent to +77.5% annualized-return-on-investment) if the stock closes above the $187.50 strike price on the 1/30/2026 options expiration date. The details showing this potential return-on-investment result are as follows:

NVIDIA Corporation (NVDA) -- Continuation of Covered Call Position

The original buy/write net debit limit order transaction was as follows:
12/29/2025 Bought 100 NVIDIA Corporation shares at $186.29.

12/29/2025 Sold 1 NVIDIA 1/9/2026 $185.00 Call option @ $5.40 per share.  

1/9/2026 One hundred NVIDIA shares closed below the $185.00 strike price at $184.86, so the Call option expired and the 100 NVIDIA shares remained in the Covered Calls Advisor Portfolio.

1/12/2026 Continued this NVIDIA Covered Call position by selling-to-open 1 January 30th, 2026 $187.50 Call option at $5.70 per share when the NVDA stock was trading at $186.97 per share.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position if the stock is in-the-money and therefore assigned on the 1/30/2026 options expiration date is as follows:
Covered Calls Net Investment: $18,089.67
= ($186.29 - $5.40) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,108.66
= ($5.40 + $5.70) * 100 shares - $1.34 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $187.50 strike price at expiration): +$121.00
+($187.50 strike price - $186.29 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $187.50 strike price at the 1/30/2026 options expiration date): +$1,229.66
= (+$1,108.66 option income + $0.00 dividend income + $121.00 capital appreciation)

Potential Absolute Return-on-Investment: +6.8%
= +$1,229.66/$18,089.67
Potential Annualized Return-on-Investment: +77.5%
= (+$1,229.66/$18,089.67) * (365/32 days)

Continued Covered Calls Position in Dell Technologies Inc.

The Covered Calls Advisor Portfolio has a Covered Calls position in Dell Technologies Inc.(ticker DELL) which expired last Friday with the stock at $120.62 which was well below the $130.00 strike price.  Today this position was continued by rolling down-and-out to the January 30th, 2026 options expiration date at the same $125.00 strike price by selling-to-open two Calls at $3.30 per share when the price of Dell's stock was $121.93.  

As detailed below, a potential outcome for this Dell Technologies Inc. investment if the stock is in-the-money and therefore assigned on the options expiration date is +3.3% absolute return-on-investment over 50 days (equivalent to +24.1% annualized-return-on-investment) if the stock closes above the $125.00 strike price on the 1/30/2026 options expiration date.    

 

Dell Technologies Inc. (DELL) -- Continuation of Covered Calls Position

The net debit buy/write limit order was executed as follows:

12/11/2025 Bought 200 shares of Dell Technologies stock @ $136.00 per share.  
12/11/2025 Sold 2 DELL December 26th, 2025 $130.00 Call options @ $8.40 per share.  Note: the Implied Volatility of the Calls was 44.1% when this position was established.  
12/26/2025 Two Dell Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/29/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $3.00 per share when the price of Dell stock was at $128.10.

1/9/2026 Two Dell 1/9/2026 $130.00 Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
1/12/2026 Continued Covered Calls position by selling-to-open two 1/30/2026 $125.00 Calls at $3.30 per share when the price of Dell stock was at $121.93.

A possible overall performance result (including commissions) if this Covered Calls position is in-the-money on the 1/30/2026 options expiration date is as follows:
Dell Technologies Covered Calls Net Investment: $25,521.34
= ($136.00 - $8.40) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,935.98
= ($8.40 + $3.00 + $3.30) * 200 shares - $4.02 commissions
(b) Dividend Income: +$105.00 = $.525 ex-div on 1/20/2026 x 200 shares
(c) Capital Appreciation (If Dell Technologies stock is above the $125.00 strike price at the January 30th options expiration date): -$2,200.00
= ($125.00 strike price - $136.00 stock purchase price) * 200 shares

Potential Total Net Profit (If in-the-money and therefore assigned at expiration): +$840.98
= (+$2,935.98 options income + $105.00 dividend income - $2,200.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 1/30/2026 options expiration date): +3.3% = +$840.98/$25,521.34

Potential Equivalent Annualized-Return-on-Investment: +24.1%
= (+$840.98/$25,521.34) x (365/50 days)

Rolled Out the Covered Calls Position in Sea Limited ADR

The Covered Calls Advisor Portfolio had a Covered Calls position in Sea Limited ADR (ticker SE) that has an options expiration date today (January 9th, 2026) at the $130.00 strike price.  Sea's stock price has decreased from $137.15 when it was originally purchased on December 1st, 2025 to $134.25 today when I decided to continue with this Covered Calls position with a two-week rollout transaction to the January 23rd, 2026 expiration and at the same $130.00 strike price.  To accomplish this rollout, a debit spread transaction was executed by simultaneously buying-to-close 2 January 9th, 2026 $130.00 Calls @ $3.60 per share (so only $.05 time value remaining since the stock price was $67.55 when this transaction was executed) and selling-to-open 3 January 16th, 2026 $65.00 Calls @ $4.21 per share--a net credit of $.61 per share to roll-up by $1.00 per share (from $64.00 to $65.00).  

Sea Ltd. is a large-cap ($72 billion enterprise value) company headquartered in Singapore.  It is a consumer internet company with three core businesses -- e-commerce, digital gaming, and fintech services.  The e-commerce business called Shopee is their largest business (by revenue) and is a mobile-centric, social-focused marketplace providing users a shopping environment with integrated payment, logistics, and seller services.  The digital gaming business is called Galena which offers mobile and personal computer online games and develops mobile games for the worldwide market. The fintech services (called Monee) includes mobile wallet services, payment processing, credit, banking, and insurance tech.  Their operations are primarily in Indonesia, Taiwan, Thailand, Singapore, Malaysia, the Philippines, and Brazil.  

As detailed below, a potential outcome for this Sea Limited investment if the stock is in-the-money and therefore assigned on the options expiration date is +5.7% absolute return-on-investment over 53 days (equivalent to +39.4% annualized-return-on-investment) if the stock closes above the $130.00 strike price on the 1/23/2026 options expiration date.   The details showing this potential return-on-investment result are as follows:

Sea Limited ADR (SE) -- Rolled Out the Covered Calls Position
The original simultaneous buy/write transaction was as follows:
12/1/2025 Bought 200 Sea Ltd. shares @ $137.15
12/1/2025 Sold 2 SE 12/19/2025 $130.00 Call options @ $9.65 per share
Note: the Implied Volatility of the Calls was 43.0 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.2.
12/19/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/26/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $2.38 per share when the price of Sea Ltd. stock was at $126.96.
1/9/2026 Sea Ltd. Covered Calls rolled out by buying-to-close the two 1/9/2026 $130.00 Calls at $4.25 per share and simultaneously selling two 1/23/2026 $130.00 Calls at $6.70 per share, so a net credit of $2.45 per share.

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if the stock price is in-the-money and therefore assigned at the $130.00 strike price on the options expiration date is as follows:

Covered Calls Cost Basis: $25,501.34
= ($137.15 - $9.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,890.64
= ($9.65 + $2.38 - $4.25 + $6.70) * 200 shares - $5.36 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $130.00 strike price at the 1/23/2026 options expiration date): -$1,430.00
+($130.00 strike price - $137.15 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $130.00 strike price on the 1/23/2026 options expiration date): +$1,460.64

= (+$2,890.64 options income + $0.00 dividend income - $1,430.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $130.00 strike price on the 1/23/2026 options expiration date): +5.7%

= +$1,460.64/$25,501.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $130.00 strike price at the 1/23/2026 options expiration date): +39.4%

= (+$1,460.64/$25,501.34) * (365/53 days)

  

Rolled Up-and-Out the Covered Calls Position in Dexcom Inc.

The Covered Calls Advisor Portfolio had a Covered Calls position in Dexcom Inc. (ticker DXCM) that has an options expiration date today at the $64.00 strike price.  Dexcom's stock price had increased slightly from $66.66 when it was originally purchased on December 23rd, 2025 to $67.55 today when I decided to continue with this Covered Calls position with a one-week roll up-and-out transaction to the monthly January 16th, 2026 $65.00 strike price.  To accomplish this rollout, a debit spread transaction was executed by simultaneously buying-to-close 3 January 9th, 2026 $65.00 Calls @ $3.60 per share (so only $.05 time value remaining since the stock price was $67.55 when this transaction was executed) and selling-to-open 3 January 16th, 2026 $65.00 Calls @ $4.21 per share--a net credit of $.61 per share to roll-up by $1.00 per share (from $64.00 to $65.00).  

As detailed below, a potential return-on-investment result is +4.0% absolute return-on-investment (equivalent to +69.7% annualized return-on-investment over the 24 days duration of this Covered Calls position) if the stock is assigned on the January 16th, 2026 options expiration date.

Dexcom Inc. (DXCM) -- Rolled Up-and-Out this Covered Calls Position
The original simultaneous buy/write transaction today was as follows:
12/23/2025 Bought 300 Dexcom Inc. shares @ $66.66
12/23/2025 Sold 3 DXCM 1/9/2026 $64.00 Call options @ $3.60 per share
Note: the Implied Volatility of the Calls was 33.1 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 14.1.
1/9/2026 Dexcom Covered Calls rolled up-and-out by buying-to-close the three 1/9/2026 $64.00 Calls at $3.60 per share and simultaneously selling three 1/16/2026 $65.00 Calls at $4.21 per share, so a net credit of $.61 per share.

A possible overall performance result (including commissions) for this Dexcom Covered Calls position if assigned on the options expiration date is as follows:
Covered Calls Cost Basis: $18,920.01
= ($66.66 - $3.60) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,256.97
= ($3.60 - $3.60 +$4.21) * 300 shares - $6.03 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Dexcom shares assigned at $65.00 strike price at the 1/16/2026 options expiration date): -$498.00
+($65.00 - $66.66) * 300 shares

Total Net Profit (If Dexcom shares assigned at the $65.00 strike price at the 1/16/2026 options expiration date): +$758.97

= (+$1,256.97 options income + $0.00 dividend income - $498.00 capital appreciation)

Absolute Return-on-Investment (If DXCM shares assigned at $65.00 strike price on Jan. 16th, 2026 options expiration date): +4.0%

= +$758.97/$18,920.01

Annualized Return-on-Investment (If Dexcom stock assigned at $65.00 at the 1/16/2026 options expiration date): +69.7%

= (+$758.97/$18,920.01) * (365/24 days)

Continuation of Covered Call Position in Microsoft Corporation

The Covered Calls Advisor Portfolio has a Covered Call position in Microsoft Corporation (ticker MSFT) which expired last Friday (January 2nd, 2026).  Today I decided to continue this position by rolling down-and-out from the $487.50 strike price to the January 16th, 2026 options expiration at the $485.00 strike price by selling-to-open one Call at $5.40 per share when Microsoft's stock price was $482.52.  

As detailed below, a potential outcome for this Microsoft investment if the stock is in-the-money and therefore assigned on the January 16th, 2026 options expiration date is +0.2% absolute return-on-investment over 78 days (equivalent to +1.1% annualized-return-on-investment) if the stock closes above the $485.00 strike price on the 1/16/2026 options expiration date.  Although this would be a small return-on-investment result, it shows that selling in-the-money strike prices can still be profitable even when there is a substantial decline in the stock price -- for example, from $522.64 to $485.00 (-7.2% decline) in this Microsoft position.  The potential return-on-investment results are detailed below as follows:

Microsoft Corporation (MSFT) -- Continuation of Covered Call Position

The net debit buy/write limit order was executed as follows:
10/30/2025 Bought 100 shares of Microsoft stock @ $522.64 per share.  
10/30/2025 Sold 1 MSFT November 7th, 2025 $512.50 Call option @ $14.08 per share.  The Implied Volatility of the Call was 25.3 when this transaction was executed.

11/7/2025 One hundred Microsoft shares closed below the $512.50 strike price at $496.77, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

11/10/2025 Continued this Microsoft Corporation Covered Call position by selling 1 November 14th, 2025 $505.00 Call option at $4.00 per share when the stock was trading at $502.45 per share.

11/14/2025 One Microsoft 11/14/2025 $505.00 Call option expired out-of-the-money, so the 100 Microsoft shares remain in the Covered Calls Advisor Portfolio.

11/20/2025 Ex-dividend of $.91 per share.

11/28/2025 Continued this Microsoft Covered Call position by rolling down-and-out by selling one 12/12/2025 $492.50 Call option at $8.20 per share.  

12/12/2025 One hundred Microsoft shares closed below the $492.50 strike price, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

12/18/2025 Continued this Microsoft Corporation Covered Call position by selling 1 January 2nd, 2026 $487.50 Call option at $6.30 per share when the stock was trading at $484.12 per share.

1/2/2026 One hundred Microsoft shares closed below the $487.50 strike price, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

1/7/2026 Continued this Microsoft Corporation Covered Call position by selling 1 January 16th, 2026 $485.00 Call option at $5.40 per share when the stock was trading at $482.40 per share.  

A possible overall performance result (including commissions) if this position is assigned on its 1/16/2026 options expiration date is as follows:
Microsoft Covered Call Net Investment: $50,856.67
= ($522.64 - $14.08) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$3,794.65
= ($14.08 + $4.00 + $8.20 + $6.30 + $5.40) * 100 shares - $3.35 commissions
(b) Dividend Income: +$91.00 = $.91 ex-dividend x 100 shares
(c) Capital Appreciation (If Microsoft stock is above the $485.00 strike price at the January 16th, 2026 option expiration date): -$3,764.00
= ($485.00 strike price - $522.64 stock purchase price) * 100 shares

Potential Total Net Profit (If assigned at expiration): +$121.65
= (+$3,794.65 Call option income + $91.00 dividend income - $3,764.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.2%
= +$121.65/$50,856.67
Potential Equivalent Annualized-Return-on-Investment: +1.1%
= (+$121.65/$50,856.67) * (365/78 days)

Continuation of Covered Calls Position in Generac Holdings Inc.

The Covered Calls Advisor Portfolio has a Covered Calls position in Generac Holdings Inc. (ticker GNRC) which expired last Friday with the stock at $141.10 which was well below the $155.00 strike price.  Today this position was continued by rolling down-and-out to the January 16th, 2026 monthly options expiration date at the $150.00 strike price by selling-to-open two Calls at $3.05 per share when the price of Generac's stock was $147.56.  

As detailed below, a potential outcome for this Generac investment if the stock is in-the-money and therefore assigned on the options expiration date is +1.2% absolute return-on-investment over 32 days (equivalent to +13.9% annualized-return-on-investment) if the stock closes above the $150.00 strike price on the 1/16/2026 options expiration date.   The details showing this potential return-on-investment result are as follows:  

Generac Holdings Inc. (GNRC) -- Continuation of Covered Calls Position

Today's buy/write net limit order transaction was as follows:
12/15/2025 Bought 200 Generac shares at $158.49.

12/15/2025 Sold 2 Generac 1/2/2026 $155.00 Call options @ $7.29 per share.  The Implied Volatility of these Calls was 37.5 when this position was established.  

1/2/2026 Two Generac Calls expired out-of-the-money, so 200 Generac shares remain in the Covered Calls Advisor Portfolio

1/5/2026 Continued this Covered Calls position by selling-to-open two Generac January 16th, 2026 $150.00 Call options at $3.05 per share.  The Implied Volatility of these Calls was 40.8 when they were sold.

A possible overall performance result (including commissions) for this Generac Covered Calls position if the stock is in-the-money and therefore assigned at the $150.00 strike price is as follows:
Covered Calls Net Investment: $30,241.34
= ($158.49 - $7.29) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,065.32
= ($7.29 +$3.05) * 200 shares - $2.68 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 Generac shares assigned (i.e. above the $150.00 strike price) on the 1/16/2026 options expiration date): -$1,698.00
+($150.00 strike price - $158.49 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 Generac shares assigned at the $150.00 strike price on the 1/16/2026 options expiration date): +$367.32

= ($2,065.32 options income + $0.00 dividend income - $1,698.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 Generac shares assigned at the $150.00 strike price on the 1/16/2026 options expiration date): +1.2%
= (+$367.32/$30,241.34)

Potential Annualized Return-on-Investment (If 200 Generac shares assigned at the $155.00 strike price on the 1/2/2026 options expiration date): +13.9%
= (+$758.66/$30,241.34) * (365/32 days)

Continued Covered Calls Position in Dell Technologies Inc.

The Covered Calls Advisor Portfolio has a Covered Calls position in Dell Technologies Inc.(ticker DELL) which expired last Friday with the stock at $129.24 which was below the $130.00 strike price.  Today this position was continued by rolling out to the January 9th, 2026 options expiration date at the same $130.00 strike price by selling-to-open two Calls at $3.00 per share when the price of Dell's stock was $128.10.  

As detailed below, a potential outcome for this Dell Technologies Inc. investment if the stock is in-the-money and therefore assigned on the options expiration date is +4.2% absolute return-on-investment over 29 days (equivalent to +53.1% annualized-return-on-investment) if the stock closes above the $130.00 strike price on the 1/9/2026 options expiration date.    

 

Dell Technologies Inc. (DELL) -- Continuation of Covered Calls Position

The net debit buy/write limit order was executed as follows:

12/11/2025 Bought 200 shares of Dell Technologies stock @ $136.00 per share.  
12/11/2025 Sold 2 DELL December 26th, 2025 $130.00 Call options @ $8.40 per share.  Note: the Implied Volatility of the Calls was 44.1% when this position was established.  
12/26/2025 Two Dell Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/29/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $3.00 per share when the price of Dell stock was at $128.10.

A possible overall performance result (including commissions) if the position is in-the-money on the 1/9/2026 options expiration date is as follows:
Dell Technologies Covered Calls Net Investment: $25,521.34
= ($136.00 - $8.40) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,277.32
= ($8.40 + $3.00) * 200 shares - $2.68 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Dell Technologies stock is above the $130.00 strike price at the January 9th options expiration date): -$1,200.00
= ($130.00 strike price - $136.00 stock purchase price) * 200 shares

Potential Total Net Profit (If in-the-money and therefore assigned at expiration): +$1,077.32
= (+$2,277.32 options income + $0.00 dividend income - $1,200.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 1/9/2026 options expiration date): +4.2% = +$1,077.32/$25,521.34

Potential Equivalent Annualized-Return-on-Investment: +53.1%
= (+$1,077.32/$25,521.34) * (365/29 days)

Continuation of Covered Calls Position in Halozyme Therapeutics Inc.

The Covered Calls Advisor Portfolio has a Covered Calls position in Halozyme Therapeutics Inc. (ticker HALO) which expired last Friday with the stock at $67.35 which was below the $70.00 strike price.  Today this position was continued by rolling out to the January 16th, 2026 monthly options expiration date at the same $70.00 strike price by selling-to-open two Calls at $1.45 per share when the price of Halozyme's stock was $68.57.  

As detailed below, a potential outcome for this Halozyme Therapeutics investment if the stock is in-the-money and therefore assigned on the options expiration date is +4.6% absolute return-on-investment over 49 days (equivalent to +34.0% annualized-return-on-investment) if the stock closes above the $70.00 strike price on the 1/16/2026 options expiration date.   The details showing this potential return-on-investment result are as follows:  

Halozyme Therapeutics Inc. (HALO) -- Continuation of Covered Calls Position

The net debit buy/write limit order was executed as follows:

11/28/2025 Bought 200 shares of Halozyme Therapeutics stock @ $71.57 per share.  
11/28/2025 Sold 2 HALO December 19th, 2025 $70.00 Call options @ $3.25 per share.  Note: the Implied Volatility of the Calls was 32.5 when this position was established.  
12/19/2025 Two HALO Calls expired out-of-the-money, so 200 Halozyme Therapeutics shares remain in the Covered Calls Advisor Portfolio

12/26/2025 Continued this Covered Calls position by selling-to-open two Halozyme January 16th, 2026 $70.00 Call options at $1.45 per share.  The Implied Volatility of these Calls was 38.5 when they were sold.

A possible overall performance results (including commissions) if the position is in-the-money on the options expiration date is as follows:
Halozyme Covered Calls Net Investment: $13,665.34
= ($71.57 - $3.25) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$937.32
= ($3.25 + $1.45) * 200 shares - $2.68 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Halozyme stock is above the $70.00 strike price at the January 16th options expiration date): -$314.00
= ($70.00 strike price - $71.57 stock purchase price) * 200 shares

Potential Total Net Profit (If stock price is in-the-money and therefore assigned at the Jan. 16th, 2026 options expiration date): +$623.32
= (+$937.32 options income + $0.00 dividend income - $314.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 1/16/2026 options expiration date): +4.6% = +$623.32/$13,665.34

Potential Equivalent Annualized-Return-on-Investment: +34.0%
= (+$623.32/$13,665.34) * (365/49 days)

Continuation of Covered Calls Position in Sea Limited ADR

The Covered Calls Advisor Portfolio has a Covered Calls position in Sea Limited ADR (ticker SE) which expired last Friday with the stock at $121.97 which was well below the $130.00 strike price.  Today this position was continued by rolling out to the January 9th, 2026 options expiration date at the same $130.00 strike price by selling-to-open two Calls at $2.38 per share when the price of Sea's stock was $126.96.  

As detailed below, a potential outcome for this Sea Limited investment if the stock is in-the-money and therefore assigned on the options expiration date is +3.8% absolute return-on-investment over 39 days (equivalent to +35.7% annualized-return-on-investment) if the stock closes above the $130.00 strike price on the 1/9/2026 options expiration date.   The details showing this potential return-on-investment result are as follows:

Sea Limited ADR (SE) -- Continuation of Covered Calls Position
The simultaneous buy/write transaction today was as follows:
12/1/2025 Bought 200 Sea Ltd. shares @ $137.15
12/1/2025 Sold 2 SE 12/19/2025 $130.00 Call options @ $9.65 per share
Note: the Implied Volatility of the Calls was 43.0 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.2.
12/19/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/26/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $2.38 per share when the price of Sea Ltd. stock was at $126.96.

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if assigned on the options expiration date is as follows:

Covered Calls Cost Basis: $25,501.34
= ($137.15 - $9.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,403.32
= ($9.65 + $2.38) * 200 shares - $2.68 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $130.00 strike price at options expiration): -$1,430.00
+($130.00 strike price - $137.15 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $130.00 strike price at the 1/9/2026 expiration): +$973.32

= (+$2,403.32 options income + $0.00 dividend income - $1,430.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $130.00 strike price on the 1/9/2026 options expiration date): +3.8%

= +$973.32/$25,501.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $130.00 strike price at the 1/9/2026 options expiration date): +35.7%

= (+$973.32/$25,501.34) * (365/39 days)

Continuation of Covered Calls Position in NVIDIA Corporation

The Covered Calls Advisor Portfolio has a Covered Calls position in NVIDIA Corporation (ticker NVDA) with 200 shares which expired last Friday with the stock at $180.99 which was below the $185.00 strike price.  Today this position was continued by rolling down-and-out eleven days to the January 2nd, 2026 options expiration date at an in-the-money $182.50 strike price by selling-to-open two NVDA Calls at $4.35 per share when NVIDIA's stock price was $183.29.  

As detailed below, a potential outcome for this NVIDIA investment if the stock is in-the-money and therefore assigned on the January 2nd, 2026 options expiration date is +11.2% absolute return-on-investment over 43 days (equivalent to +95.0% annualized-return-on-investment) if the stock closes above the $182.50 strike price on the 1/2/2026 options expiration date.  The details showing this potential return-on-investment result are as follows:

NVIDIA Corporation (NVDA) -- New Covered Call Position

The original buy/write net limit order transaction was as follows:
11/21/2025 Bought 200 NVIDIA Corporation shares at $177.70.

11/21/2025 Sold 2 NVIDIA 12/5/2025 $185.00 Call options @ $4.50 per share.  The Implied Volatility of these Calls was 52.0 when this position was established.  
12/4/2025 Ex-dividend of $.01 per share.

12/5/2025 Two hundred NVIDIA shares 

12/8/2025 Continued this NVIDIA Corporation Covered Calls position by selling 2 December 19th, 2025 $185.00 Call options at $5.75 per share when the stock was trading at $185.38 per share.  

12/19/2025 Two hundred NVIDIA shares closed below the $185.00 strike price at $180.99, so the two Call options expired and the 200 NVIDIA shares remained in the Covered Calls Advisor Portfolio.

12/22/2025 Continued this Covered Calls position by selling-to-open 2 January 2nd, 2026 $182.50 Call options at $4.35 per share when the NVDA stock was trading at $183.29 per share.

 

The overall performance results (including commissions) for this NVIDIA Corporation Covered Calls position if it closes above the $182.50 strike price at the January 2nd, 2026 options expiration is as follows:
Covered Calls Net Investment: $34,641.34
= ($177.70 - $4.50) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,915.98
= ($4.50 + $5.75 + $4.35) * 200 shares - $4.02 commissions
(b) Dividend Income: +$2.00 = $.01 x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $182.50 strike price) on the 1/2/2026 options expiration date): +$960.00
+($182.50 strike price - $177.70 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $182.50 strike price on the 1/2/2026 options expiration date): +$3,877.98

= (+$2,915.98 options income + $2.00 dividend income + $960.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned at the $182.50 strike price on the 1/2/2026 options expiration date): +11.2%
= (+$3,877.98/$34,641.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $182.50 strike price on the 1/2/2026 options expiration date): +95.0%
= (+$3,877.98/$34,641.34) * (365/43 days)

Continuation of Covered Call Position in Microsoft Corporation

The Covered Calls Advisor Portfolio has a Covered Call position in Microsoft Corporation (ticker MSFT) which expired on Friday, December 12th.  Today I decided to continue this position by rolling down-and-out from the $492.50 strike price to the January 2nd, 2026 options expiration at the $487.50 strike price by selling-to-open one Call at $6.30 per share when Microsoft's stock price was $484.12.  

As detailed below, a potential outcome for this Microsoft investment if the stock is in-the-money and therefore assigned on the January 2nd, 2026 options expiration date is -0.3% absolute return-on-investment over 64 days (equivalent to -1.9% annualized-return-on-investment) if the stock closes above the $487.50 strike price on the 1/2/2026 options expiration date.  The details showing the potential return-on-investment results are as follows:

Microsoft Corporation (MSFT) -- Continuation of Covered Call Position

The net debit buy/write limit order was executed as follows:
10/30/2025 Bought 100 shares of Microsoft stock @ $522.64 per share.  
10/30/2025 Sold 1 MSFT November 7th, 2025 $512.50 Call option @ $14.08 per share.  The Implied Volatility of the Call was 25.3 when this transaction was executed.

11/7/2025 One hundred Microsoft shares closed below the $512.50 strike price at $496.77, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

11/10/2025 Continued this Microsoft Corporation Covered Call position by selling 1 November 14th, 2025 $505.00 Call option at $4.00 per share when the stock was trading at $502.45 per share.

11/14/2025 One Microsoft 11/14/2025 $505.00 Call option expired out-of-the-money, so the 100 Microsoft shares remain in the Covered Calls Advisor Portfolio.

11/20/2025 Ex-dividend of $.91 per share.

11/28/2025 Continued this Microsoft Covered Call position by rolling down-and-out by selling one 12/12/2025 $492.50 Call option at $8.20 per share.  

12/12/2025 One hundred Microsoft shares closed below the $492.50 strike price, so the one Call option expired and the 100 Microsoft shares remained in the Covered Calls Advisor Portfolio.

12/18/2025 Continued this Microsoft Corporation Covered Call position by selling 1 January 2nd, 2026 $487.50 Call option at $6.30 per share when the stock was trading at $484.12 per share.

A possible overall performance result (including commissions) if this position is assigned on its 1/2/2026 options expiration date is as follows:
Microsoft Covered Call Net Investment: $50,856.67
= ($522.64 - $14.08) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$3,255.32
= ($14.08 + $4.00 + $8.20 + $6.30) * 100 shares - $2.68 commissions
(b) Dividend Income: +$91.00 = $.91 ex-dividend x 100 shares
(c) Capital Appreciation (If Microsoft stock is above the $487.50 strike price at the January 2nd, 2026 option expiration date): -$3,514.00
= ($487.50 strike price - $522.64 stock purchase price) * 100 shares

Potential Total Net Profit (If assigned at expiration): -$167.68
= (+$3,255.32 option income + $91.00 dividend income - $3,514.00 capital appreciation)

Potential Absolute Return-on-Investment: -0.3%
= -$167.68/$50,856.67
Potential Equivalent Annualized-Return-on-Investment: -1.9%
= (-$167.68/$50,856.67) * (365/64 days)