Established Covered Call in Lowe's Companies Inc.

Today, a two-week buy/write net debit limit order in Lowe's Companies Inc. (ticker LOW) was executed at the Covered Calls Advisors' net debit price of $267.84 per share.  One hundred shares were purchased at $276.50 and simultaneously one January 30th, 2026 Call option was sold for $8.66 at the $270.00 strike price, therefore a maximum time value profit potential of $2.16 per share = [$8.66 Call option premium - ($276.50 stock price - $270.00 strike price)] for the Call option portion of this trade was established.  The probability that Lowe's stock will close in-the-money on the January 30th options expiration date was 69.7% today when this position was established.

Lowe's has an upcoming quarterly ex-dividend of $1.20 per share next Tuesday (January 20th, 2026), so this dividend is included in the detailed return-on-investment calculations below.  Importantly to the Covered Calls Advisor, there is no quarterly earnings report (which increases the volatility of the stock price on the day earnings are reported) prior to the options expiration date since the next earnings report on February 25th, 2026 is after the January 30th options expiration date.

As detailed below, a potential return-on-investment result is +1.3% absolute return (equivalent to +32.6% annualized return-on-investment over the next 14 days) if the stock is assigned on the January 30th, 2026 options expiration date. 

Lowe's Companies Inc. (LOW) -- New 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.

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: +$865.33
= ($8.66 * 100 shares) - $.67 commission
(b) Dividend Income (If Lowe's stock assigned at the January 30th, 2026 options expiration date): +$120.00
= ($1.20 dividend per share x 100 shares)

(c) Capital Appreciation (If shares are in-the-money and therefore assigned at $270.00 strike price at the options expiration date): -$650.00

+($270.00 strike price - $276.50) * 100 shares

Total Net Profit (If Lowe's shares assigned at the $270.00 strike price at the Jan. 30th, 2026 options expiration date): +$335.33

= (+$865.33 option income + $120.00 dividend income - $650.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.3%

= +$335.33/$26,784.67

Potential Annualized Return-on-Investment: +32.6%

= (+$335.33/$26,784.67) * (365/14 days)

Established Covered Call in Palo Alto Networks Inc.

A Covered Call position was established this afternoon in Palo Alto Networks Inc. (ticker PANW).  My net buy/write limit order at $181.96 was executed by simultaneously purchasing one hundred shares at $189.28 and selling one January 30th, 2026 Call option at the $185.00 strike price at $7.32 per share, which provides a $3.04 per share = [$7.32 Call option premium received - ($189.28 stock purchase price - $185.00 option strike price)] time value profit potential.  A moderately in-the-money Covered Call position was established for this new position with the probability that Palo Alto's stock will close in-the-money on the 1/30/2026 options expiration date was 63.8% when this transaction was executed.  As I prefer, the next earnings report on February 12th, 2026 is after the January 30th, 2026 options expiration date. 

As detailed below, a potential return-on-investment result is +1.7% absolute return-on-investment (equivalent to +40.6% annualized return-on-investment for the next 15 days) if Palo Alto's share price is in-the-money (i.e. above the $185.00 strike price) and therefore assigned on its January 30th, 2026 options expiration date.  

Palo Alto Networks Inc. (PANW) -- New Covered Call Position

Today's buy/write net debit limit order transaction was as follows:
1/15/2026 Bought 100 Palo Alto Networks shares at $189.28.

1/15/2026 Sold 1 Palo Alto Networks 1/30/2026 $185.00 Call option @ $7.32 per share. The Implied Volatility of this Call option was 31.5 when this position was established. 

A possible overall performance result (including commissions) for this Palo Alto Networks Covered Call position is as follows:
Covered Call Net Investment: $18,196.67
= ($189.28 - $7.32) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$731.33
= ($7.32 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 Palo Alto shares assigned at the $185.00 strike price at expiration): -$428.00
+($185.00 strike price - $189.28 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 Palo Alto Networks shares are in-the-money and therefore assigned at the $185.00 strike price at the options expiration date): +$303.33
= (+$731.33 option income + $0.00 dividend income - $428.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.7%
= +$303.33/$18,196.67
Potential Annualized Return-on-Investment: +40.6%
= (+$037.33/$18,196.67) * (365/15 days)

Covered Calls Position Established in Dexcom Inc.

Early in this afternoon's trading session, a Covered Calls position in Dexcom Inc. (DXCM) was established when two hundred shares were purchased at $69.30 and two January 30th, 2026 Call options were sold at $4.45 per share at the $66.00 strike price.  The buy/write net debit limit order at $64.85 was executed, so the time value was $1.15 per share [$4.45 Call options premium - ($69.30 stock purchase price - $66.00 strike price)].  As I prefer, Dexcom's next quarterly earnings report on February 12th, 2026 is after the January 30th, 2026 options expiration date.  Given the Covered Calls Advisor's current cautious market outlook, an in-the-money Covered Calls position was established with a 70.5% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Dexcom designs and commercializes continuous glucose monitoring (CGM) systems for diabetic patients.  It is evolving its CGM systems to provide integration with insulin pumps from Insulet and Tandem for automatic insulin delivery.  Dexcom appeared in my recently developed "Super Growers" stock screener.  As shown below, Dexcom passed all 15 of my screener criteria including the fact that the average target price of the 25 analysts currently covering the company is +22.9% above today's stock purchase price.

  

As detailed below, a potential return-on-investment result is +1.8% absolute return-on-investment (equivalent to +40.2% annualized return-on-investment over the next 16 days) if the stock is assigned on the January 30th, 2026 options expiration date.

Dexcom Inc. (DXCM) -- New Covered Calls Position
The simultaneous buy/write transaction today was as follows:
1/14/2026 Bought 200 Dexcom Inc. shares @ $69.30
1/14/2026 Sold 2 DXCM 1/30/2026 $66.00 Call options @ $4.45 per share
Note: the Implied Volatility of the Calls was 41.9 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.7.

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: $12,971.34
= ($69.30 - $4.45) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$888.66
= ($4.45 * 200 shares) - $1.34 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Dexcom shares assigned at $66.00 strike price at options expiration): -$660.00
+($66.00 - $69.30) * 200 shares

Total Net Profit (If Dexcom shares assigned at the $66.00 strike price at the 1/30/2026 expiration): +$228.66

= (+$888.66 + $0.00 - $660.00)

Absolute Return-on-Investment (If DXCM shares assigned at $66.00 strike price on Jan. 30th, 2026 options expiration date): +1.8%

= +$228.66/$12,971.34

Annualized Return-on-Investment (If Dexcom stock assigned at $66.00 at the 1/30/2026 options expiration date): +40.2%

= (+$228.66/$12,971.34) * (365/16 days)

Closed Out NetApp Inc. Covered Call Position

Last Friday, the Covered Call position in NetApp Inc. (ticker NTAP) closed out-of-the-money at $105.39 which was below its $107.00 strike price.  When NTAP's stock price advanced to $107.10 in today's trading session, I decided to close out the position by selling the 100 shares.

As detailed below, the return-on-investment results are: +2.0% absolute return (equivalent to +27.6% annualized return-on-investment) for the 26 days of this investment.

NetApp Inc. (NTAP) -- Covered Call Position
The simultaneous net debit buy/write transaction was:
12/17/2025 Bought 100 NetApp Inc. shares @ $110.74.
12/17/2025 Sold 1 NetApp 1/9/2026 $107.00 Call option @ $5.20 per share.
Note: the Implied Volatility of this Call option was 26.3 when this position was established.

1/2/2026 NetApp ex-dividend at $.52 per share.
1/9/2026 Call option closed out-of-the-money, so the Call option expired and 100 NetApp shares remained in the Covered Calls Advisor Portfolio.

1/12/2026 Sold 100 shares of NetApp at $107.10 per share.

The overall performance results (including commission) for this NetApp Inc. Covered Call position are as follows:
Covered Call Cost Basis: $10,554.67

= ($110.74 - $5.20) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$519.33
= ($5.20 * 100 shares) - $.67 commission
(b) Dividend Income: +$52.00
= ($.52 dividend per share x 100 shares)

(c) Capital Appreciation (100 NetApp shares sold at $107.10): -$364.00
+($107.10 stock sales price - $110.74 stock purchase price) * 100 shares

Total Net Profit: +$207.33

= (+$519.33 option income + $52.00 dividend income - $364.00 capital appreciation)

Absolute Return-on-Investment: +2.0%

= +$207.33/$10,554.67

Annualized Return-on-Investment: +27.6%

= (+$207.33/$10,554.67) * (365/23 days)