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)

January 9th, 2026 Options Expiration Results

The Covered Calls Advisor Portfolio had four Covered Calls positions with January 9th, 2026 options expiration dates.  One position (Medtronic PLC) closed in-the-money so the three Call options expired and the shares were called away (i.e. sold) at its $96.00 strike price.  The other three positions in NVIDIA Corporation, NetApp Inc., and Dell Holdings Inc. closed out-of-the-money so their Calls expired and their shares now remain in the Covered Calls Advisor Portfolio.  A summary of results for each of these positions is as follows:

1. Medtronic PLC (MDT) -- +1.5% absolute return (equivalent to +24.2% annualized return-on-investment) for the 23 days of this investment.  This Covered Calls position was assigned at the $96.00 strike price since the stock closed in-the-money at $97.53 per share.  The original blog post detailing this Covered Calls position is here. 

2. NVIDIA Corporation (NVDA) -- This Covered Call position closed yesterday at $184.86 which was slightly below its $185.00 strike price, so the one Call option expired and 100 NVIDIA shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will most likely decide to continue this Covered Call position by selling a Call option against the 100 NVIDIA shares currently held or possibly close out the position by selling the shares.

3. NetApp Inc. (NTAP) -- This Covered Call position closed yesterday at $105.39 which was below its $107.00 strike price, so the one Call option expired and 100 NetApp shares now remain in the Covered Calls Advisor Portfolio.  The original blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Call position by selling a Call option against the 100 NetApp shares currently held or close out the position by selling the shares. 

4. Dell Holdings Inc. (DELL) -- This Covered Calls position closed yesterday at $120.62 which was well below its $130.00 strike price, so the two Call options expired and 200 Dell shares now remain in the Covered Calls Advisor Portfolio.  The most recent blog post detailing this position is here.  Early in this upcoming week I will decide to either continue this Covered Callsposition by selling two Call options against the 200 Dell shares currently held or close out the position by selling the shares. 

As always, I welcome your feedback at my email address shown below on anything related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

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)