Covered Calls Advisor

Covered Calls Position Established in Uber Technologies Inc.

2026-09-09T15:22:13.492-04:00

This afternoon my buy/write net debit limit order was transacted and 400 shares of Uber Technologies Inc. (ticker symbol UBER) stock were purchased at $71.23 and 4 September 25th, 2026 $69.00 Call options were sold at $3.45 per share -- a net debit of $67.78 per share. So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $1.22 per share [$3.45 Call options premium - ($71.23 stock purchase price - $69.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 66.3% when this order was transacted. As preferred, the next quarterly earnings report on November 3rd, 2026 is after the September 25th options expiration date.

As detailed below, a potential outcome for this Uber Technologies investment is +1.8% absolute return-on-investment for the next 16 days (equivalent to +40.8% annualized-return-on-investment) if the stock closes above the $69.00 strike price on the September 25th, 2026 options expiration date.

Uber Technologies Inc. (UBER) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
9/9/2026 Bought 400 shares of Uber Technologies Inc. stock @ $71.23 per share.
9/9/2026 Sold 4 Uber Sept 25th, 2026 $69.00 Call options @ $3.45 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 35.4 when this position was established which, as preferred, is well above the current VIX of 16.3.

A possible overall performance result (including commissions) if this position is assigned on its 9/25/2026 options expiration date is as follows:
Covered Calls Net Investment: $27,114.68
= ($71.23 - $3.45) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$1,377.32
= ($3.45 * 400 shares) - $2.68 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $69.00 strike price at the 9/25/2026 options expiration date): -$892.00
= ($69.00 - $71.23) * 300 shares

Potential Total Net Profit (If assigned at expiration): +$485.32
= (+$1,377.32 options income + $0.00 dividend income - $892.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.8%
= +$485.32/$27,114.68
Potential Equivalent Annualized-Return-on-Investment: +40.8%
= (+$485.32/$27,114.68) * (365/16 days)

Covered Call Position Established in Alphabet Inc.

2026-09-09T09:52:27.229-04:00

A new short-term Covered Call net debit buy/write limit order was transacted shortly after market open today in Alphabet Inc. (ticker GOOGL) for the September 18th, 2026 expiration and at the $320.00 strike price. The order was placed at a $316.68 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $3.32 per share [$12.79 Call option premium - ($329.47 stock purchase price - $320.00 strike price)]. The probability that this position will be in-the-money and therefore assigned on its options expiration date was 69.2% when this order was transacted.

As detailed below, the potential return-on-investment result is +1.0% absolute return-on-investment in 9 days (equivalent to a +42.4% annualized return-on-investment).

Alphabet Inc. (GOOGL) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
9/9/2026 Bought 100 shares of Alphabet Inc. stock @ $329.47 per share.
9/9/2026 Sold 1 Alphabet Inc. September 18th $320.00 Call option @ $12.79 per share.
Note: The Implied Volatility of the Call option was approximately 34.5 when this transaction was executed which, as I prefer, is well above the current 16.1 of the S&P 500 Volatility Index (i.e. VIX).

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $31,668.67
= ($329.47 - $12.79) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,278.33
= ($12.79 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Alphabet stock is above $320.00 strike price at the 9/18/2026 options expiration date): -$947.00
= ($320.00 strike price - $329.47 stock purchase price) * 100 shares

Total Net Profit Potential: +$331.33
= (+$1,278.33 option income +$0.00 dividend income - $947.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.0%
= +$331.33/$31,668.67
Potential Equivalent Annualized Return-on-Investment: +42.4%
= (+$331.33/$31,668.67) * (365/9 days)

September 4th, 2026 Options Expiration Results

2026-09-05T08:14:42.141-04:00

The Covered Calls Advisor Portfolio had two Covered Call positions with September 4th, 2026 options expirations and both positions (NVIDIA Corporation and T-Mobile US, Inc.) were assigned yesterday so the Call options expired and both Covered Call positions were closed out by selling the stocks at their respective strike prices. The return-on-investment summary for each position is as follows:

1. Nvidia Corporation (NVDA) -- +1.6% absolute return-on-investment (equivalent to +59.2% annualized return-on-investment) for the 10 days of this investment. This NVIDIA Covered Call position had a $200.00 strike price and it closed in-the-money at $230.36 yesterday. The original blog post showing the details of this position is here.

2. T-Mobile US, Inc. (TMUS) -- +1.7% absolute return-on-investment (equivalent to +41.6% annualized return-on-investment) for the 15 days of this investment. This T-Mobile Covered Call position had a $175.00 strike price and it closed in-the-money at $181.52 yesterday. The original blog post showing the details of this position is here.

Send your questions/comments to the email address shown below on any topics related to the Covered Calls investing strategy. As always, any new positions I establish will continue to be posted on this blog site when they occur.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

August 28th, 2026 Options Expiration Results

2026-08-29T08:28:25.895-04:00

The Covered Calls Advisor Portfolio had one Covered Calls position with an August 28th, 2026 options expiration date. The position in SK hynix Inc. ADR closed in-the-money at $161.04 so the Call options expired and the 200 shares were called away (i.e. sold) at the $150.00 strike price. A summary of results for this position is as follows:

SK hynix Inc. ADR (SHKY) -- +3.1% absolute return (equivalent to +125.2% annualized return-on-investment) for the 9 days of this investment. This Covered Calls position was assigned at the $150.00 strike price since the stock closed in-the-money at $161.04 per share. The original blog post detailing this Covered Calls position is here.

Email me at the address shown below with any questions or comments on anything related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Calls Position in SK hynix Inc. ADR

2026-08-27T14:54:21.687-04:00

A new Covered Calls position of two weeks duration was established this afternoon in SK hynix Inc. ADR (ticker SKHY). My buy/write net debit limit order at $145.62 was executed and the time value was $4.38 per share [$13.48 Call options premium - ($159.10 stock purchase price - $150.00 strike price)]. An in-the-money strike price was established with the probability that SK hynix's stock will close in-the-money (i.e. above the $150.00 strike price) on the 9/11/2026 options expiration date was 64.7% when this transaction was executed. This is the second SK hynix Covered Calls position in the Covered Calls Advisor Portfolio and serves as a continuation of the first SK hynix Covered Calls position, whose expiration date is tomorrow. The first position is also at the $150.00 strike price, so it will likely be closed out (i.e. assigned) after tomorrow's market close. As preferred, their next quarterly earnings report on October 27th is well after the September 11th options expiration date

SK hynix (based in South Korea) is one of the three major HBM (High Bandwidth Memory) suppliers -- the other two being Samsung and Micron. But SK hynix is the leader with about 58% of this market and is also the #1 HBM supplier to NVIDIA.

As detailed below, a potential return-on-investment result if SK hynix Inc. ADR's share price is in-the-money (i.e. above the $150.00 strike price) and therefore assigned on its September 11th, 2026 options expiration date is +3.0% absolute return-on-investment (equivalent to +73.1% annualized return-on-investment for the next 15 days).

SK hynix Inc. ADR (SKHY) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
8/27/2026 Bought 200 SK hynix Inc. ADR shares at $159.10.

8/27/2026 Sold 2 SK hynix 9/11/2026 $150.00 Call options @ $13.48 per share. The Implied Volatility of these Calls was 64.7 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) which was 14.7.

A possible overall performance result (including commissions) for this SK hynix Covered Calls position is as follows:

Covered Calls Net Investment: $29,125.34
= ($159.10 - $13.48) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,694.66
= ($13.48 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 SK hynix shares assigned (i.e. above the $150.00 strike price) on the 9/11/2026 options expiration date): -$1,820.00

+($150.00 strike price - $159.10 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 SK hynix shares assigned at the $150.00 strike price on the 9/11/2026 options expiration date): +$874.66

= (+$2,694.66 options income + $0.00 dividend income - $1,820.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 SK hynix shares assigned (i.e. sold) at the $150.00 strike price on the 9/11/2026 options expiration date): +3.0%

= (+$874.66/$29,125.34)

Potential Annualized Return-on-Investment (If 200 SK hynix shares assigned at the $150.00 strike price on the 9/11/2026 options expiration date): +73.1%

= (+$874.66/$29,125.34) * (365/15 days)

Established Two New Covered Call Positions in NVIDIA Corporation

2026-08-27T10:37:05.232-04:00

Two new Covered Call positions were established in NVIDIA Corporation (ticker NVDA) and the details for both positions are shown below. I almost always establish simultaneous buy/write Covered Call positions, but given my confidence in NVIDIA's earnings report, I decided to stagger the timing by first purchasing the stock and subsequently selling the Call option for both of these positions.

1. NVIDIA Corporation (NVDA) -- New Covered Call Position

This position transactions were as follows:
8/26/2026 Bought 100 NVIDIA Corporation shares at $210.88. These shares were purchased yesterday afternoon prior to the earnings release after the market closed.

8/27/2026 Sold 1 NVIDIA 9/11/2026 $215.00 Call option @ $11.75 per share when the stock price was trading at $223.90 early in today's trading session.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position if the stock closes above the $215.00 strike price on the 9/11 options expiration date is as follows:
Covered Call Net Investment: $19,913.67
= ($210.88 - $11.75) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,174.33
= ($11.75 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $215.00 strike price at expiration): +$412.00
+($215.00 strike price - $210.88 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares are in-the-money and therefore assigned at the $215.00 strike price at the options expiration date): +$1,586.33
= (+$1,174.33 option income + $0.00 dividend income + $412.00 capital appreciation)

Potential Absolute Return-on-Investment: +8.0%
= +$1,586.33/$19,913.67
Potential Annualized Return-on-Investment: +181.7%
= (+$1,586.33/$19,913.67) * (365/16 days)

2. NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's Covered Call position transactions were as follows:
8/27/2026 Bought 100 NVIDIA Corporation shares at $222.88.

8/27/2026 Sold 1 NVIDIA 9/11/2026 $220.00 Call option @ $9.56 per share when the stock price was at $225.40. The Implied Volatility of the Call was 34.3 when this option was sold and the probability that the position will close in-the-money and therefore be assigned on the options expiration date was 62.6%.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,331.33
= ($222.88 - $9.56) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$955.33
= ($9.56 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $220.00 strike price at the 9/11/2026 options expiration date): -$288.00
+($220.00 strike price - $222.88 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $220.00 strike price at the options expiration date): +$667.33
= (+$955.33 option income + $0.00 dividend income - $288.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.1%
= +$667.33/$21,331.33
Potential Annualized Return-on-Investment: +76.1%
= (+$667.33/$21,331.33) * (365/15 days)

Covered Call Position Established in NVIDIA Corporation

2026-08-25T12:03:56.545-04:00

A short-term in-the-money Covered Call position was established this morning in NVIDIA Corporation (ticker NVDA). My net buy/write limit order at $196.80 was executed when the stock price dropped to $210.71 per share and one hundred shares at that price and one September 4th, 2026 Call option was simultaneously sold at the $200.00 strike price at $13.91 per share, which provides a $3.20 per share = [$13.91 Call option premium received - ($210.71 stock purchase price - $200.00 option strike price)] time value profit potential. An in-the-money Covered Call position was established for this new position with the probability that NVIDIA's stock will close in-the-money on the 9/4/2026 options expiration date was 71.0% when this transaction was executed. I am violating my own preference since NVIDIA's Q2 earnings report is after market close tomorrow (before the options expiration date), but I am limiting my exposure with a strike price 5% below the stock price and also only 100 NVIDIA shares .

As detailed below, a potential return-on-investment result is +1.6% absolute return-on-investment (equivalent to +59.2% annualized return-on-investment for the next 10 days) if NVIDIA's share price is in-the-money (i.e. above the $200.00 strike price) and therefore assigned on its September 4th, 2026 options expiration date.

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
8/25/2026 Bought 100 NVIDIA Corporation shares at $210.71.

8/25/2026 Sold 1 NVIDIA 9/4/2026 $200.00 Call option @ $13.91 per share.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $19,680.67
= ($210.71 - $13.91) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$1,390.33
= ($13.91 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $200.00 strike price at expiration): -$1,071.00
+($200.00 strike price - $210.71 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $200.00 strike price at the options expiration date): +$319.33
= (+$1,390.33 option income + $0.00 dividend income - $1,071.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.6%
= +$319.33/$19,680.67
Potential Annualized Return-on-Investment: +59.2%
= (+$319.33/$19,680.67) * (365/10 days)

Closed Out Covered Call Position in AppLovin Inc.

2026-08-25T10:38:28.251-04:00

Last Friday, the Covered Call position in AppLovin Inc. (ticker APP) closed out-of-the-money at $305.77 which was below its $310.00 strike price. With AppLovin's stock price at $304.92 in this morning's trading session, I decided to close out the position by selling the 100 shares.

As detailed below, the return-on-investment results are: +1.3% absolute return (equivalent to +24.8% annualized return-on-investment) for the 19 days of this investment.

AppLovin Corporation (APP) -- Covered Call Position Closed Out

8/25/2026 Closed out this Covered Call position by selling the 100 remaining APP shares at $304.92.

The overall performance result (including commissions) was as follows:
Covered Call Cost Basis: $30,102.67
= ($335.02 - $34.00) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$3,399.33
= ($34.00 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (100 shares of AppLovin stock sold at $304.92): -$3,010.00
= ($304.92 stock selling price - $335.02 stock purchase price) * 100 shares

Total Net Profit: +$389.33
= (+$3,399.33 option income + $0.00 dividend income - $3,010.00 capital appreciation)

Absolute Return-on-Investment: +1.3%
= +$389.33/$30,102.67
Equivalent Annualized Return-on-Investment: +24.8%
= (+$389.33/$30,102.67) * (365/19 days)

Closed Out Positions in Deckers Outdoor Corporation and Otis Worldwide Corporation

2026-08-24T10:49:27.881-04:00

The Covered Call positions in Deckers Outdoor Corporation (ticker DECK) and Otis Worldwide Corporation (OTIS) closed out-of-the-money at last Friday's options expiration date, so their Call options expired and their shares remained in the Covered Calls Advisor Portfolio. Early in today's trading session I closed out both positions by selling the 200 Deckers and the 200 Otis shares. The transactions history for both positions and their associated return-on-investment results are detailed below.

1. Deckers Outdoor Corporation (DECK) -- Covered Calls Position Closed Out

This Covered Calls position transactions were as follows:

8/4/2026 Bought 200 shares of Deckers Outdoor Corp. stock @ $99.58 per share.
8/4/2026 Sold 2 DECK August 21st, 2026 $95.00 Call options @ $6.26 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 38.1 when this position was established which, as preferred, is well above the current VIX of 15.8.
8/21/2026 The Call options expired out-of-the-money at $91.68 and 200 Deckers shares remained in the Covered Calls Advisor Portfolio.
8/24/2026 Closed out this Covered Calls position by selling the 200 Deckers shares at $92.80.

The overall performance result (including commissions) for this Deckers Covered Calls position is as follows:
Covered Calls Net Investment: $18,665.34
= ($99.58 - $6.26) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,250.66
= ($6.26 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (200 Deckers shares sold at $92.80 on 8/24/2026 options expiration date): -$1,356.00
= ($92.80 stock selling price - $99.58 stock purchase price) * 200 shares

Total Net Loss: -$105.34
= (+$1,250.66 options income + $0.00 dividend income - $1,356 capital appreciation)

Absolute Return-on-Investment: -0.6%
= -$105.34/$18,665.34
Equivalent Annualized-Return-on-Investment: -10.3%
= (-$105.34/$18,665.34) * (365/20 days)

2. Otis Worldwide Corporation (OTIS) -- Covered Calls Position Closed Out

The buy/write net limit order transaction was as follows:
8/11/2026 Bought 200 Otis Worldwide Corporation shares at $73.08.

8/11/2026 Sold 2 Otis 88/21/2026 $72.50 Call options @ $1.38 per share. The Implied Volatility of these Calls was 26.7 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) which was 15.4.

8/14/2026 Ex-dividend of $.44 per share.

8/21/2026 The Call options expired out-of-the-money at $71.49 and 200 Otis shares remained in the Covered Calls Advisor Portfolio.
8/24/2026 Closed out this Covered Calls position by selling the 200 Otis shares at $72.26.

The overall performance result (including commissions) for this Otis Worldwide Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $14,341.34
= ($73.08 - $1.38) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$274.66
= ($1.38 * 200 shares) - $1.34 commission
(b) Dividend Income: +$88.00 = $.44 per share x 200 shares
(c) Capital Appreciation: -$164.00
+($72.26 stock selling price - $73.08 stock purchase price) * 200 shares

Total Net Profit: +$198.66

= (+$274.66 options income + $88.00 dividend income - $164.00 capital appreciation)

Absolute Return-on-Investment: +1.4%

= (+$198.66/$14,341.34)

Annualized Return-on-Investment: +38.9%
= (+$198.66/$14,341.34) * (365/13 days)

Exploiting Our Covered Calls Investing "Edges"

2026-08-22T11:34:47.146-04:00

For any given investing strategy, the investor should try to identify any and all discernible advantages that particular strategy has when compared against a basic Buy-and-Hold stocks approach. In this regard, consider this investing wisdom from renowned investor Seth Klarman: "We believe that while investors need to focus great attention on the fundamentals, they must simultaneously answer the question: What's your edge? To succeed in today's overcrowded environment, investors need an edge, an advantage over the competition, to help them allocate their scarce time. Since most everyone has access to complete and accurate databases, powerful computers, and well-trained analytical talent, these resources provide less and less of a competitive edge; they are necessary but not sufficient. You cannot have an edge doing what everyone else is doing; to add value you must stand apart from the crowd. And when you do, you benefit from watching the competition at work."

Identifying and then establishing a disciplined investing process to exploit these "edges" is what enables us to attain additional profit beyond that which would otherwise be obtained through a passive Buy-and-Hold stocks strategy. So what are our "edges" as Covered Calls investors? It is this advisor's belief that there are thirteen edges, each of which can contribute to our opportunity to achieve excess returns:

1. Specialize in Covered Calls Investing -- Here is the introduction to one of my prior blog posts: "One of the most important investing lessons I've learned is to select an investing strategy that you are most comfortable with and stay with it. That is, do not try to be "a jack-of-all-trades and a master of none." Instead, try to continually increase your knowledge related to the strategy you are using and seek to become an expert at it." This fundamental belief in combination with the performance results achieved is what has sustained my commitment to Covered Calls investing during the past three decades -- thus this Covered Calls Advisor's investing motto of "Stick with Covered Calls."

2. Active Management -- The typical Buy-and-Hold investing strategy is a passive investing approach since stocks, mutual funds, and ETFs are normally purchased and held for a period of years. Likewise, Covered Calls investing can also be deployed passively, and passive Covered Calls-related indices (for example BXM, BXY, and PUT) have been developed. Research has shown that the long-term returns performance of these indices are approximately equivalent to that of a comparable buy-and-hold investment but with approximately 30% less risk. But as individual investors, we have the opportunity to be "active" (contrasted with "passive") managers of our Covered Calls portfolios. As active managers, an associated "edge" comes from deploying the strategies itemized in the additional items enumerated in the remainder of this article.

3. Stock Selection -- Stocks are an appreciating asset over prolonged time periods and historically have achieved a higher return-on-investment than buying other asset classes (bonds, real estate, commodities, stock options, etc.). So, buying stocks should be the foundation of any long-term investing strategy, and buying stocks is fundamental to the Covered Calls strategy--where we buy stocks and sell Call options against the stocks we own. Identifying and buying good stocks is Job #1 for the Covered Calls investor. Unlike broad-based indices, such as the S&P 500 ETF (SPY) or other ETFs (such as the sector ETFs), we seek to purchase individual equities with good fundamentals which are likely to continue in the future, as they have historically, to outperform broad-based indices.

4. Adjust Moneyness of Strike Prices -- As active Covered Calls investors, we have the flexibility to sell out-of-the-money Covered Calls when our outlook is more bullish and in-the-money when bearish, whereas the mechanical indices sell the same moneyness every month (for example, only at-the-money calls in the case of BXM). With even modest success at adjusting moneyness to coincide with (1) our overall market outlook, and (2) our personal risk tolerance, incrementally higher return-on-investment results are achieved.

5. Exploiting the Volatility Risk Premium -- Academic research has demonstrated that the Implied Volatility of option prices is, on average, higher their subsequent actual realized volatility. So, by selling options to establish our Covered Calls positions (NOT buying options), we Covered Calls investors exploit this effect (another "edge" versus buy-and-hold investors) and profit from it.

6. Sell Higher-Than-Average Volatility -- Because of the large cap nature and the diversification inherent in the S&P 500 index, its Volatility Index (VIX) is lower than the overwhelming majority of individual stocks that comprise the index. Selling options on individual equities (with higher Implied Volatility than VIX) provides Covered Calls investors with higher options premium income (and thus also somewhat higher overall portfolio returns) than would be achieved by either (1) buy-and-hold investing directly in the S&P 500; or (2) selling S&P 500 options (such as is done with the BXM, BXY, and PUT indices).

In addition, we can benefit from the knowledge that the Implied Volatility of stock options have an inverse relationship with their short-term stock price performance. That is, Implied Volatility (and therefore also the annualized-return-on-investment (aroi) potential) decreases as a stock's price increases (and becomes overbought). Conversely, Implied Volatility increases when short-term stock prices decline and become oversold (I often look at the Relative Strength Index (both RSI(14 days) and RSI(2 days) and consider the stock oversold when either RSI is below 30. Increasing Implied Volatility also provides increasing potential aroi -- so this is an opportune time to establish new Covered Calls positions by "buying the dips" in stock prices [but of course only in companies we are bullish on (see item #3 on Stock Selection above)] and establishing new Covered Calls positions by simultaneously selling Call options against the stock positions bought.

7. Increase Frequency of Trading -- The time value decay of options increases the closer they get to their expiration date. So, shorter duration Covered Calls positions provide a higher potential annualized-return-on-investment than their longer duration counterparts. Favoring monthly, bi-weekly, or even weekly Covered Calls is preferable to positions of longer duration (two months, three months, or longer). An added benefit of shorter-dated options is that they provide more frequent opportunities to re-evaluate our holdings and to modify our ongoing strike prices given the ever-changing nature of market prices and individual stock outlooks.

8. Adjust Our Position Sizing -- We can use the Greek value of Delta as a good approximation of the probability of assignment of any Covered Calls position we are considering prior to entering the position. Delta values enable us also approximate an Expected Value for the Annualized Return-on-Investment potential for various stock price outcomes on the options expiration date (such as if the stock price is unchanged, or if the stock price ends in-the-money). This knowledge of various Expected Value Return-on-Investment outcomes helps us to determine the position sizing for the investment -- higher Expected Value Returns corresponding to larger-than-average total dollar positions and lower Expected Value Returns corresponding to below-average total dollar positions.

9. Seek to Minimize Losses -- Because our compounded return-on-investment results over time are geometric returns (not average returns), losses are difficult to overcome. For example, a 33 1/3% loss doesn't require a 33 1/3% gain to get back to breakeven; it requires a 50% gain (and a 50% loss would require a 100% gain). Covered Calls provide an advantage over the traditional buy-and-hold stocks in this regard since selling Call options against our stock holdings provides a hedge (i.e. lowers our stock downside breakeven price point) and therefore increases the likelihood that we will be profitable on our positions. Furthermore, when we are selecting a strike price for any position where we have doubt between two potential strikes, we can select the more conservative (i.e. lower) strike price to decrease our probability of losing money on the position, therefore further increasing our probability of achieving a profitable outcome.

10. Invest in Non-Correlated Assets -- Another way (in addition to that stated in #9 above) we can minimize drawdowns (i.e. losses) in our portfolio is to seek to diversify our portfolio via non-correlated assets. We know intuitively and from our own investing experience that different asset classes rotate in-and-out of favor and that it is extremely difficult to try to predict when these rotations will occur. But there is substantial academic research that has determined that investing in non-correlated assets (such as by asset classes, sectors, industries, geographies, etc.) enhances geometric returns. So, achieving adequate diversification via non-correlated assets in our portfolios is another important consideration.

11. Use a Tax-Advantaged IRA Account -- The great likelihood of triggering short-term capital gains makes Covered Calls an ideal strategy for either Traditional and/or Roth IRAs since these profits can be left in the IRA (tax-free) for additional future investments growth. Of course, any funds withdrawn from IRAs are subject to applicable tax laws in the year they are withdrawn.

12. Use a Dividend Capture Strategy When Appropriate -- Covered Calls investors can increase the annual dividend yield of quarterly dividend-paying companies by establishing Covered Calls positions during the single month each quarter when they go ex-dividend (and avoiding those same companies during the other two months each quarter when no dividend is paid). The Covered Calls Advisor's "Dividend Capture Strategy" worksheet (see details here) was designed to identify these opportunities that provide another "edge" to our financial results. These positions can be especially attractive to boost returns in low-growth and/or below average Implied Volatility sectors (like the Consumer Staples, Energy, Financials, Industrials, Materials, Real Estate, and Utilities sectors).

13. Avoid Earnings Reports -- I have learned (sometimes the hard way) that the stock price reaction on that day each quarter when a company issues their earnings report can frequently be extraordinarily unpredictable -- that is with very large stock price moves (sometimes very positive but also sometimes very negative). So, when considering potential companies to invest in, I always identify when their next earnings reporting date will be and I strongly recommend avoiding consideration of any company with an upcoming earnings report that is prior to the options expiration date.

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From my experience, my best estimate is that over a long-term investing horizon (say 10+ years), a disciplined Covered Calls investor that is cognizant of the thirteen "edges" described above, and works to take advantage of them might expect (on average over the years), to outperform a buy-and-hold benchmark (such as the S&P 500) by at least 3 to 5 percentage points on an annualized-return-on-investment basis. This extra return might not sound especially impressive, but the power of compounding investment returns is substantial. Suppose that over the next decade a Buy-and-Hold S&P 500 investor averages an 8% annualized return; and a Covered Calls investor averages a 12% return. Then, an initial $100,000 portfolio would grow (excluding taxes) over the next 10 years, to about $215,900 for a buy-and-hold portfolio; but to $310,600 for the Covered Calls portfolio. Whereas individually, each of these "edges" described above provides only a small advantage, together they can provide a very significant advantage for informed and disciplined Covered Calls investors.
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More detailed information on Covered Calls investing can be found on the author's free blog site, http://coveredcallsadvisor.blogspot.com/

August 21st, 2026 Options Expiration Results

2026-08-22T08:34:18.336-04:00

The Covered Calls Advisor Portfolio had five Covered Calls positions with August 21st, 2026 options expiration dates.

Two Covered Calls positions (Alphabet Inc. and IAMGOLD Corporation) closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices -- so both positions achieved their maximum potential return-on-investment results on their options expiration dates.
Three positions in AppLovin Corporation, Deckers Outdoor Corporation, and Otis Worldwide Corporation closed out-of-the-money so their Call options expired and the shares remain in the Covered Calls Advisor Portfolio. Early next week I will decide to either sell these shares to close out the Covered Call positions or continue these Covered Call positions by selling Calls against the shares now held. When these transactions occur, I will post the detailed transaction history of each position on this blog.

A summary of results for each of these five positions (listed below in alphabetical order by ticker symbol) is as follows:

1. Alphabet Inc. (GOOGL) -- +0.9% absolute return (equivalent to +32.4% annualized return-on-investment) for the 10 days of this investment. This Covered Call position was assigned at the $335.00 strike price since the stock closed in-the-money at $344.82 per share. The original recent blog post detailing this Covered Calls position is here.

2. AppLovin Corporation (APP) -- This Covered Call position closed yesterday at $305.77 which was below its $310.00 strike price, so the one Call option expired and 100 AppLovin 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 one Call option against the 100 APP shares currently held or close out the position by selling these shares.

3. Deckers Outdoor Corporation (DECK) -- This Covered Calls position closed yesterday at $91.68 which was below its $95.00 strike price, so the two Call options expired and 200 Deckers 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 Calls position by selling two Call options against the 200 Deckers shares currently held or close out the position by selling these shares.

4. IAMGOLD Corporation (IAG) -- +7.6% absolute return (equivalent to +87.1% annualized return-on-investment) for the 32 days of this investment. This Covered Calls position was assigned at the $14.00 strike price since the stock closed in-the-money at $21.13 per share. The original blog post detailing this Covered Call position is here.

5. Otis Worldwide Corporation (OTIS) -- This Covered Calls position closed yesterday at $71.49 which was below its $72.50 strike price, so the two Call options expired and 200 Otis 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 Calls position by selling two Call options against the 200 Otis Worldwide Corp. shares currently held or close out the position by selling these shares.

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

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Covered Call Position Established in T-Mobile US, Inc.

2026-08-20T11:30:15.626-04:00

This morning a short-term Covered Call position was established in T-Mobile US, Inc. (ticker symbol TMUS) using my Dividend Capture Strategy (see description of Dividend Capture Strategy here). My buy/write limit order was executed when 100 shares were purchased at $180.86 and 1 September 4th, 2026 weekly Call option was sold at $7.80 per share at the $175.00 strike price. The time value (aka extrinsic value) profit potential in the Call option was $1.94 per share [$7.80 Call option premium - ($180.86 stock price - $175.00 strike price)] when this transaction executed. There is also an upcoming ex-dividend of $1.02 per share this next Friday (August 28th, 2026). Two potential return-on-investment results for this position are detailed below and include the possibility of early exercise since the ex-dividend is prior to the September 4th, 2026 options expiration date. When this position was established, the probability that the Call will be in-the-money on the options expiration date was 70.1%. Important to the Covered Calls Advisor, T-Mobile's next quarterly earnings report on October 22nd is after the September 4th options expiration date.

Analysts' average target price for T-Mobile is currently $242.11 which is +33.9% above today's stock purchase price. Fundamentally speaking, T-Mobile is rated by LSEG Stocks Plus Report (on a scale of 1 to 10) with an Average Score of 9 and an Optimized Score of 9. T-Mobile also currently meets all criteria in my Shareholder Yield stock screener:

As detailed below, two potential return-on-investment results are:

+1.1% absolute return (equivalent to +57.8% annualized return-on-investment for the next 7 days) if the stock is assigned early (on the last business day prior to the August 28th, 2026 ex-dividend date); OR

+1.7% absolute return (equivalent to +41.6% annualized return-on-investment over the next 15 days) if T-Mobile's stock is assigned on the September 4th options expiration date.

T-Mobile US, Inc. (TMUS) -- New Covered Call Position

The buy/write transaction was:
8/20/2026 Bought 100 T-Mobile shares @ $180.86.
8/20/2026 Sold 1 T-Mobile 9/4/2026 $175.00 Call option @ $7.80 per share. The Implied Volatility of the Call option was 32.5 when this transaction was executed. I prefer to establish Covered Call positions when a stock price is temporarily declining and the short-term Relative Strength [RSI(2)] is in oversold territory (i.e. below 30) -- both of these conditions were met when establishing this T-Mobile position, and when this occurs the Implied Volatility is temporarily increasing so that the potential annualized return-on-investment is also increasing. 😄
8/28/2026 Upcoming quarterly ex-dividend of $1.02 per share.

Two possible overall performance results (including commissions) for this Covered Call position are as follows:
T-Mobile Covered Call Cost Basis: $17,306.67
= ($180.86 - $7.80) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$780.00
= ($7.80 * 100 shares)
(b) Dividend Income (If option exercised early on August 27th, 2026, the business day prior to the August 28th ex-div date): +$0.00; or
(b) Dividend Income (If T-Mobile stock assigned at the September 4th, 2026 options expiration): +$102.00
= ($1.02 dividend per share x 100 shares)
(c) Capital Appreciation (If T-Mobile Call option assigned early on August 28th): -$586.00
+($175.00 strike price - $180.86 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $175.00 strike price on the 9/4/2026 options expiration date): -$586.00
+($175.00 - $180.86) * 100 shares

1. Total Net Profit [If option exercised on Aug. 27th (business day prior to the Aug. 28th ex-dividend date)]: +$194.00

= (+$780.00 option income + $0.00 dividend income - $586.00 capital appreciation); or

2. Total Net Profit (If T-Mobile shares assigned at $175.00 strike price at the September 4th, 2026 options expiration date): +$296.00

= (+$785.00 option income + $102.00 dividend income - $586.00 capital appreciation)

1. Absolute Return (If option exercised early): +1.1%

= +$194.00/$17,306.67

Annualized Return-on-Investment (If option exercised early): +58.4%

= (+$194.00/$17,306.67) * (365/7 days); or

2. Absolute Return (If T-Mobile shares assigned at the $175.00 strike price at the Sept. 4th, 2026 options expiration date): +1.7%

= +$296.00/$17,306.67

Annualized Return-on-Investment (If T-Mobile shares assigned at the $175.00 at the Sept. 4th, 2026 options expiration date): +41.6%

= (+$296.00/$17,306.67) x (365/15 days)

These attractive return-on-investment results will be achieved as long as the stock is above the $175.00 strike price at assignment. If the stock declines below the strike price, the breakeven price of $172.04 ($180.86 - $7.80 - $1.02) provides 4.9% downside protection below today's stock purchase price.

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position. As shown below with this T-Mobile US, Inc. position, eight of the nine criteria are met.

Established Covered Calls Position in SK hynix Inc. ADR

2026-08-19T10:31:29.798-04:00

A short-term Covered Calls position of 9 days duration was established this morning in SK hynix Inc. ADR (ticker SKHY). My buy/write net debit limit order at $145.50 was executed and the time value was $4.50 per share [$12.47 Call options premium - ($157.97 stock purchase price - $150.00 strike price)]. An in-the-money strike price was established with the probability that SK hynix's stock will close in-the-money (i.e. above the $150.00 strike price) on the 8/28/2026 options expiration date was 63.8% when this transaction was executed.

As detailed below, a potential return-on-investment result if SK hynix Inc. ADR's share price is in-the-money (i.e. above the $150.00 strike price) and therefore assigned on its August 28th, 2026 options expiration date is +3.1% absolute return-on-investment (equivalent to +125.2% annualized return-on-investment for the next 9 days).

SK hynix Inc. ADR (SKHY) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
8/19/2026 Bought 200 SK hynix Inc. shares at $157.97.

8/19/2026 Sold 2 SK hynix 8/28/2026 $150.00 Call options @ $12.47 per share. The Implied Volatility of these Calls was 79.3 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) which was 15.3.

A possible overall performance result (including commissions) for this SK hynix Covered Calls position is as follows:

Covered Calls Net Investment: $29,101.34
= ($157.97 - $12.47) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,492.66
= ($12.47 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 SK hynix shares assigned (i.e. above the $150.00 strike price) on the 8/28/2026 options expiration date): -$1,594.00

+($150.00 strike price - $157.97 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 SK hynix Worldwide Corp. shares assigned at the $150.00 strike price on the 8/28/2026 options expiration date): +$898.66

= (+$2,492.66 options income + $0.00 dividend income - $1,594.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 SK hynix shares assigned (i.e. sold) at the $150.00 strike price on the 8/28/2026 options expiration date): +3.1%

= (+$898.66/$29,101.34)

Potential Annualized Return-on-Investment (If 200 SK hynix shares assigned at the $150.00 strike price on the 8/28/2026 options expiration date): +125.2%

= (+$898.66/$29,101.34) * (365/9 days)

August 14th, 2026 Options Expiration Results

2026-08-15T07:29:58.887-04:00

The Covered Calls Advisor Portfolio had two Covered Call positions with August 14th, 2026 options expirations and both positions (D.R. Horton Inc. and NVIDIA Corporation) closed with their stock prices in-the-money. So, their Calls expired with no remaining time value and the Covered Calls were closed out by the stocks being sold at their respective strike prices on their August 14th options expiration date. The return-on-investment details for each position is as follows:

1. D.R. Horton Inc. (DHI) -- +1.6% absolute return-on-investment (equivalent to +39.4% annualized return-on-investment) for the 15 days of this investment. This D.R. Horton Covered Call position had a $140.00 strike price and it closed at $148.81 yesterday. The original blog post showing the details of this position is here.

2. Nvidia Corporation (NVDA) -- +3.7% absolute return-on-investment (equivalent to +83.3% annualized return-on-investment) for the 16 days of this investment. This NVIDIA Covered Call position had a $190.00 strike price and it closed at $225.16 yesterday. The original blog post showing the details of this position is here.

I look forward to receiving your emails with your questions/comments at the email address shown below on any topics related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Early Assignment of Covered Call Position in Expand Energy Corporation

2026-08-13T07:28:50.739-04:00

I was notified by Schwab early this morning that the one Expand Energy Corporation August 21st, 2026 Call option was exercised yesterday on the day prior to today's $.575 ex-dividend date. The Expand Energy stock price increased from $91.26 when this position was established to $96.28 at yesterday's market close, the original $1.40 time value in the Call option when the position was established had declined on yesterday's market close to $0.62. So, with 9 days remaining until the August 21st options expiration date, the owner of this Call exercised their option to buy the 100 EXE shares at the $90.00 strike price in order to receive today's $.575 per share ex-dividend.

I was surprised that the owner of this Call option exercised their right in this instance since they decided to immediately forego the remaining $.62 time value profit potential (which I am pleased to have received as an immediate profit addition to my return-on-investment result for this position). I am also pleased with the +72.1% annualized-return-on-investment (aroi) result achieved today by early assignment since it exceeds the maximum +50.8% aroi that might have been achieved if this position instead remained in-the-money and would therefore be assigned on its August 21st, 2026 options expiration date.

The post when this Expand Energy Covered Call position was originally established is shown here.

As detailed below, the return-on-investment result for this Expand Energy Covered Call position was +1.6% absolute return in 8 days (equivalent to a +72.1% annualized return-on-investment).

Expand Energy Corporation (EXE) -- Covered Call Position Closed by Early Assignment
The Buy/Write transaction was as follows:
8/5/2026 Bought 100 shares of Expand Energy Corp. stock @ $91.26 per share.
8/5/2026 Sold 1 Expand Energy August 21st, 2026 $90.00 Call option @ $2.66 per share. The Implied Volatility of the Call option was 26.6 which, as preferred, is well above the current 15.5 of VIX.
8/13/2026 One Expand Energy Call was exercised on the day prior to its August 13th, 2026 ex-dividend date, so the Call option expired and the 100 Expand Energy shares were sold at the $90.00 strike price, which closed out this Covered Call position.

The overall performance results (including commissions) are as follows:
Covered Call Position Net Investment: $8,860.67
= ($91.26 - $2.66) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$266.00
= ($2.66 * 100 shares)
(b) Dividend Income (EXE Call option exercised early on Aug. 12th, the last business day prior to the August 13th ex-div date): +$0.00
(c) Capital Appreciation: -$126.00
+($90.00 strike price - $91.26 stock price) * 100 shares

Total Net Profit: +$140.00

= (+$266.00 option income +$0.00 dividend income -$126.00 capital appreciation)

Absolute Return-on-Investment: +1.6%

= +$140.00/$8,860.67

Annualized Return-on-Investment: +72.1%

= (+$140.00/$8,860.67) * (365/8 days)

Covered Call Position Established in Alphabet Inc.

2026-08-12T09:16:43.003-04:00

A new short-term Covered Call net debit buy/write limit order was established yesterday afternoon in Alphabet Inc. (ticker GOOGL) for the August 21st, 2026 expiration and at the $335.00 strike price. The order was placed at a $332.05 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $2.95 per share [$14.67 Call option premium - ($346.72 stock purchase price - $335.00 strike price)]. The probability that this position will be in-the-money and therefore assigned on its options expiration date was 74.6% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 10 days (equivalent to a +32.4% annualized return-on-investment).

Alphabet Inc. (GOOGL) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
8/11/2026 Bought 100 shares of Alphabet Inc. stock @ $346.72 per share.
8/11/2026 Sold 1 Alphabet Inc. August 21st $335.00 Call option @ $14.67 per share.
Note: The Implied Volatility of the Call options was 30.8 when this transaction was executed which, as I prefer, is well above the current 15.4 of the S&P 500 Volatility Index (i.e. VIX).

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $33,205.67
= ($346.72 - $14.67) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,466.33
= ($14.67 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Alphabet stock is above $335.00 strike price at the 8/21/2026 options expiration date): -$1,172.00
= ($335.00 strike price - $346.72 stock purchase price) * 100 shares

Total Net Profit Potential: +$294.33
= (+$1,466.33 option income +$0.00 dividend income - $1,172.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$294.33/$33,205.67
Potential Equivalent Annualized Return-on-Investment: +32.4%
= (+$294.33/$33,205.67) * (365/10 days)

Established Covered Calls Position in Otis Worldwide Corporation

2026-08-11T14:22:23.652-04:00

A short-term Covered Calls position of 10 days duration was established late this morning in Otis Worldwide Corporation (ticker OTIS). My buy/write net debit limit order at $71.70 was executed and the time value was $.80 per share [$1.38 Call options premium - ($73.08 stock purchase price - $72.50 strike price)]. An in-the-money strike price was established with the probability that Otis' stock will close in-the-money (i.e. above the $72.50 strike price) on the 8/21/2026 options expiration date was 57.5% when this transaction was executed. An upcoming ex-dividend this Friday of $.44 per share is included in the potential return-on-investment results shown below.

As detailed below, a potential return-on-investment result if Otis' share price is in-the-money (i.e. above the $72.50 strike price) and therefore assigned on its August 21st, 2026 options expiration date is +1.7% absolute return-on-investment (equivalent to +62.8% annualized return-on-investment for the next 10 days).

Otis Worldwide Corporation (OTIS) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
8/11/2026 Bought 200 Otis Worldwide Corporation shares at $73.08.

8/14/2026 Ex-dividend of $.44 per share.

A possible overall performance result (including commissions) for this Otis Worldwide Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $14,341.34
= ($73.08 - $1.38) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$274.66
= ($1.38 * 200 shares) - $1.34 commission
(b) Dividend Income: +$88.00 = $.44 per share x 200 shares
(c) Capital Appreciation (If 200 Otis shares assigned (i.e. above the $72.50 strike price) on the 8/21/2026 options expiration date): -$116.00
+($72.50 strike price - $73.08 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 Otis Worldwide Corp. shares assigned at the $72.50 strike price on the 8/21/2026 options expiration date): +$246.66

= (+$274.66 options income + $88.00 dividend income - $116.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 Otis shares assigned (i.e. sold) at the $72.50 strike price on the 8/21/2026 options expiration date): +1.7%

= (+$246.66/$14,341.34)

Potential Annualized Return-on-Investment (If 200 Otis shares assigned at the $72.50 strike price on the 8/21/2026 options expiration date): +62.8%
= (+$246.66/$14,341.34) * (365/10 days)

Early Assignment of Covered Calls Position in IBM Corporation

2026-08-08T08:25:43.840-04:00

I was notified via email early this morning by my broker (Schwab) that two IBM Corporation (ticker IBM) August 21st, 2026 Call options were exercised early. IBM's stock price increased from $217.67 when this position was established to $237.28 at yesterday's market close. The original $3.98 time value in the Call options when the position was established had declined completely to $0.00 at yesterday's market close. So, with 14 days remaining until the 8/21/2026 options expiration date, the owner of these Calls exercised their option to buy the 200 shares at the $205.00 strike price in order to receive Monday's $1.69 per share ex-dividend -- so I achieved all of the original $3.98 per share time value as profit.

Although I will not receive the ex-dividend, I am pleased with the +51.5% annualized-return-on-investment (aroi) result achieved since it exceeds the 41.1% maximum aroi that might have been achieved if this position instead had remained in-the-money and would have therefore been assigned on its upcoming August 21st options expiration date.

The post when this IBM Covered Calls position was originally established is here.

As detailed below, the return-on-investment result for this IBM Corporation Covered Calls position was +2.0% absolute return in 14 days (equivalent to a +51.5% annualized return-on-investment).

IBM Corporation (IBM) -- Covered Calls Position Closed by Early Assignment

The detailed transactions for this position were as follows:

7/27/2026 Bought 200 IBM Corporation shares @ $217.67
7/27/2026 Sold 2 IBM 7/27/2026 $205.00 Call options @ $16.65 per share.
8/7/2026 Early Assignment of these two IBM Call options, so the Calls expired and 200 IBM shares were sold at the $205.00 strike price.

The overall performance results (including commissions) for this IBM Covered Calls position are as follows:
Covered Calls Net Investment: $40,205.34
= ($217.67 - $16.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$3,328.66
= ($16.65 * 200 shares) - $1.34 commission
(b) Dividend Income (Two Call options exercised early on August 7th, the last business day prior to the August 10th, 2026 ex-div date): +$0.00
(c) Capital Appreciation (IBM Call options assigned early): -$2,534.00
+($205.00 strike price - $217.67 stock purchase price) * 200 shares

Total Net Profit [Two Call options exercised early]: +$794.66

= (+$3,328.66 options income +$0.00 dividend income -$2,534.00 capital appreciation)

Absolute Return-on-Investment: +2.0%

= +$794.66/$40,205.34

Annualized Return-on-Investment: +51.5%

= (+$794.66/$40,205.34) * (365/14 days)

Covered Call Position Established in AppLovin Corporation

2026-08-06T10:49:30.072-04:00

This morning a new short-term Covered Call net debit buy/write limit order was established in AppLovin Corporation (ticker APP) for the August 21st, 2026 expiration and at the $310.00 strike price. The stock price declined by 20% this morning after yesterday afternoon's quarterly earnings results. Investors reacted negatively to quarterly revenue and forward quarter guidance that were slightly below expectations. But I believe this decline is overdone since this year's earnings and next year's forecasted growth now imply a forward PEG Ratio less than 1.0.

Today's limit order was placed at a $301.02, so the extrinsic value (which represents the maximum profit potential for this position) was $8.98 per share [$34.00 Call option premium - ($335.02 stock purchase price - $310.00 strike price)]. The Implied Volatility of the Call option was 70.2% and the probability that this position will be in-the-money and therefore assigned on its options expiration date was 69.2% when this order was transacted.

AppLovin is a $140 billion market cap (now only $113 billion after today's drop) leading global provider of a full-stack AI/Machine Learning powered software platform for advertisers to monetize their mobile advertising applications content. They have a self-serve ads-management dashboard that has enhanced the rate at which they add new customers which will continue to support their revenue growth and also their substantial GAAP profit margins. Their visionary CEO is Adam Foroughi who was one of the co-founders of the company in 2012. Their IPO was in 2021. They employ highly educated machine learning research scientists with graduate degrees from top-rated universities.

As detailed below, the potential return-on-investment result is +3.0% absolute return-on-investment in 15 days (equivalent to a +72.5% annualized return-on-investment).

AppLovin Corporation (APP) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
8/6/2026 Bought 100 shares of AppLovin stock @ $335.02 per share.
8/6/2026 Sold 1 AppLovin August 21st $310.00 Call option @ $34.00 per share.
Note: The Implied Volatility of the Call option was 70.2% when this transaction was executed which, as preferred, substantially exceeds the current 15.6 of the S&P 500 Volatility Index (i.e. VIX).

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $30,102.67
= ($335.02 - $34.00) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$3,399.33
= ($34.00 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If AppLovin stock is above the $310.00 strike price at the 8/21/2026 options expiration date): -$2,502.00
= ($310.00 strike price - $335.02 stock purchase price) * 100 shares

Total Net Profit Potential: +$897.33
= (+$3,399.33 option income + $0.00 dividend income - $2,502.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.0%
= +$897.33/$30,102.67
Potential Equivalent Annualized Return-on-Investment: +72.5%
= (+$897.33/$30,102.67) * (365/15 days)

Established Covered Call Position in Expand Energy Corporation

2026-08-05T15:23:54.634-04:00

This afternoon a small Covered Call position was established in Expand Energy Corporation (ticker EXE) using my Dividend Capture Strategy. My net debit limit order at the August 21st, 2026 $90.00 strike price was executed when one Expand Energy Call option was sold at $2.66 and 100 shares were bought simultaneously at $91.26 per share. The net debit was $88.60 per share and the Call option's time value profit potential was $1.40 [$2.66 option price - ($91.26 stock price - $90.00 strike price)]. The probability that the Call will be in-the-money (i.e. above the $90.00 strike price) on the 8/21/2026 options expiration date was 59.4% when this position was established. There is an intervening ex-dividend of $.575 per share (2.5% annual dividend yield) on August 13th which is included in the potential return-on-investment results detailed below.

Expand Energy Corp. is the largest independent natural gas producer in North America, focused on acquiring, developing, and producing natural gas, oil, and natural gas liquids from premier U.S. shale basins, with revenues generated through commodity sales and increasingly through marketing and logistics capabilities. Its business model emphasizes low-cost production, disciplined capital allocation, operational efficiency, and proximity to LNG export infrastructure to maximize long-term free cash flow and shareholder returns. It holds a leading competitive position in the U.S. natural gas industry following the merger of Chesapeake Energy and Southwestern Energy, giving it unmatched scale, high-quality acreage in the Haynesville and Appalachian basins, and one of the industry's deepest drilling inventories. While it competes with major producers such as EQT, Antero Resources, and Comstock Resources, its size, low-cost asset base, growing gas marketing capabilities, and strategic exposure to rising LNG exports position it as one of the industry's strongest long-term competitors.

There are 26 analysts covering Expand Energy Corp. and their average target price is $127.36 which is +39.6% above today's purchase price. Also, LSEG Stock Reports Plus has their highest Average Score of 10 and an Optimized Score of 10 (on a scale of 1 to 10).

As detailed below, two potential return-on-investment results are: (1) +1.6% absolute return-on-investment (equivalent to a +72.1% annualized return-on-investment in 8 days if the Call option is exercised and the stock is therefore assigned on the last business day prior to the August 13th ex-dividend date; and (2) +2.2% absolute return-on-investment (equivalent to a +50.8% annualized return-on-investment in 16 days if the Expand Energy stock is in-the-money and the stock is assigned on its August 21st, 2026 options expiration date.

Expand Energy Corporation (EXE) -- New Covered Call Position
The Buy/Write transaction was as follows:
8/5/2026 Bought 100 shares of Expand Energy Corp. stock @ $91.26 per share.
8/5/2026 Sold 1 Expand Energy August 21st, 2026 $90.00 Call option @ $2.66 per share. The Implied Volatility of the Call option was 26.6 which, as preferred, is well above the current 15.5 of VIX.
8/13/2026 Upcoming ex-dividend of $.575 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Call Position Net Investment: $8,860.67
= ($91.26 - $2.66) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$266.00
= ($2.66 * 100 shares)
(b) Dividend Income (If option exercised early on Aug. 12th, the last business day prior to the August 13th ex-div date): +$0.00; or
(b) Dividend Income (If Expand Energy stock assigned at the Aug 21st, 2026 expiration): $57.50
= ($.575 dividend per share x 100 shares)
(c) Capital Appreciation (If Expand Energy Call option is assigned early on August 12th): -$126.00
+($90.00 strike price - $91.26 stock price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at the $90.00 strike price at the Aug. 21st options expiration): -$126.00
+($90.00 - $91.26) * 100 shares

1. Total Net Profit [If option exercised early on the last business day prior to the August 13th ex-dividend date)]: +$140.00

= (+$266.00 option income +$0.00 dividend income -$126.00 capital appreciation); or

2. Total Net Profit (If stock shares assigned at the $90.00 strike price at the Aug. 21st, 2026 expiration): +$197.50

= (+$266.00 option income + $57.50 dividend income - $126.00 capital appreciation)

1. Absolute Return-on-Investment (If option exercised early on August 13th): +1.6%

= +$140.00/$8,860.67

Annualized Return-on-Investment: +72.1%

= (+$140.00/$8,860.67) * (365/8 days); or

2. Absolute Return-on-Investment (If Expand Energy shares assigned at the $90.00 strike price and at the August 21st, 2026 options expiration date): +2.2%

= +$197.50/$8,860.67

Annualized Return-on-Investment (If shares assigned at the 8/21/2026 options expiration date): +50.8%

= (+$197.50/$8,860.67) * (365/16 days)

Covered Calls Position Established in Deckers Outdoor Corporation

2026-08-04T10:40:40.119-04:00

This afternoon a buy/write net debit limit order was executed and 200 shares of Deckers Outdoor Corporation (ticker symbol DECK) stock were purchased at $99.58 and 2 August 21st, 2026 $95.00 Call options were sold at $6.26 per share -- a net debit of $93.32 per share. So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $1.68 per share [$6.26 Call options premium - ($99.58 stock purchase price - $95.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 73.4% when this order was transacted. As preferred, the next quarterly earnings report on October 22nd, 2026 is after the August 21st options expiration date.

Deckers is a branded footwear and apparel company that designs, markets, and distributes premium products under its flagship HOKA, UGG, and Teva brands, while outsourcing manufacturing and selling through both wholesale partners and its own direct-to-consumer e-commerce and retail channels. Its business model emphasizes brand development, product innovation, premium pricing, and a growing direct-to-consumer mix, which supports industry-leading gross margins and strong customer loyalty. Deckers currently holds one of the strongest competitive positions in the global premium footwear industry, driven by the rapid growth of HOKA in performance running and the enduring strength of UGG in lifestyle footwear, while Teva provides additional exposure to the outdoor category. Although it competes against much larger companies such as Nike, Adidas, and On Holding, Deckers has consistently gained market share through differentiated products, disciplined brand management, and strong profitability, making it one of the industry's highest-margin footwear companies.

Deckers passed all 25 criteria in my Quality + Growth stock screener:

As detailed below, a potential outcome for this Deckers investment is +1.8% absolute return-on-investment for the next 17 days (equivalent to +38.5% annualized-return-on-investment) if the stock closes above the $95.00 strike price on the August 21st, 2026 options expiration date.

Deckers Outdoor Corporation (DECK) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
8/4/2026 Bought 200 shares of Deckers Outdoor Corp. stock @ $99.58 per share.
8/4/2026 Sold 2 DECK August 21st, 2026 $95.00 Call options @ $6.26 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 38.1 when this position was established which, as preferred, is well above the current VIX of 15.8.

A possible overall performance result (including commissions) if this position is assigned on its 8/21/2026 options expiration date is as follows:
Covered Calls Net Investment: $18,665.34
= ($99.58 - $6.26) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,250.66
= ($6.26 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Deckers stock is above the $95.00 strike price at the 8/21/2026 options expiration date): -$916.00
= ($95.00 - $99.58) * 200 shares

Potential Total Net Profit (If assigned at expiration): +$334.66
= (+$1,250.66 options income + $0.00 dividend income - $916.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.8%
= +$334.66/$18,665.34
Potential Equivalent Annualized-Return-on-Investment: +38.5%
= (+$334.66/$18,665.34) * (365/17 days)

July 31st, 2026 Options Expiration Results

2026-08-01T07:11:06.897-04:00

The Covered Calls Advisor Portfolio had two Covered Calls positions with July 31st, 2026 options expirations and both positions (Alphabet Corporation and Uber Technologies Inc.) were in-the-money (and therefore assigned) yesterday so they were closed out at their respective strike prices. The return-on-investment summary for each position is as follows:

1. Alphabet Corporation (GOOGL) -- +0.9% absolute return-on-investment (equivalent to +40.0% annualized return-on-investment) for the 8 days of this investment. This Alphabet Covered Call position had a $305.00 strike price and it closed yesterday at $356.13. The original blog post showing the details of this position is here.

2. Uber Technologies Inc. (UBER) -- +1.7% absolute return-on-investment (equivalent to +37.9% annualized return-on-investment) for the 16 days of this investment. This Uber Covered Calls position had a $70.00 strike price and it closed at $70.36 yesterday. The original blog post showing the details of this position is here.

Send your questions/comments to the email address shown below on any topics related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net

Established Covered Call Position in D.R. Horton Inc.

2026-07-30T16:24:30.434-04:00

This afternoon my Covered Call net debit limit order was entered and soon thereafter executed in D.R. Horton Inc. (ticker DHI) with a short-term August 14th, 2026 options expiration date. One D.R. Horton Call option was sold at $7.99 at the $140.00 strike price when the stock price was $145.89 -- the net debit was $137.90 per share and the Call option's time value profit potential was $2.10 [$7.99 option price - ($145.89 stock price - $140.00 strike price)]. The probability that the Call will be in-the-money (i.e. above the $140.00 strike price) on the 814/2026 options expiration date was 69.4% when this position was established. There is an intervening ex-dividend of $.45 per share (1.2% annual dividend yield) on August 6th which is included in the potential return-on-investment results detailed below.

D.R. Horton is the largest homebuilder in America by market cap. Importantly, it is considered the best-in-class operator in its industry and has the highest exposure to the critically important entry-level buyers (67% of closings), lowest debt leverage, and least on-balance sheet land risk. Although homebuilders' business has been stagnant during the past 3 years, home buyers' demand is strong but constricted by the current high mortgage interest rates. Just yesterday the 30-year treasury bond yield hit an intraday high above 5.20% which was last seen two decades ago. Whenever these rates begin to reverse (especially if below 4.5%), homebuilders' financials will begin to improve. In the meantime, D.R. Horton will continue to manage their business wisely and profitably.

As detailed below, two potential return-on-investment results are: (1) +1.3% absolute return-on-investment (equivalent to a +67.3% annualized return-on-investment in 7 days if the Call option is exercised and the stock is therefore assigned on the last business day prior to the August 6th ex-dividend date; and (2) +1.6% absolute return-on-investment (equivalent to a +39.4% annualized return-on-investment in 15 days if the DHI stock is in-the-money and the stock is assigned on its August 14th, 2026 options expiration date.

D.R. Horton Inc. (DHI) -- New Covered Call Position
The Buy/Write transaction was as follows:
7/30/2026 Bought 100 shares of D.R. Horton Inc. stock @ $145.89 per share.
7/30/2026 Sold 1 D.R. Horton August 14th, 2026 $140.00 Call option @ $7.99 per share. The Implied Volatility of the Call option was 35.8 which, as preferred, is well above the current 17.1 of VIX.
8/6/2026 Upcoming ex-dividend of $.45 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Call Position Net Investment: $13,787.67
= ($145.89 - $7.99) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$767.00
= ($7.67 * 100 shares)
(b) Dividend Income (If option exercised early on Aug. 5th, the last business day prior to the August 6th ex-div date): +$0.00; or
(b) Dividend Income (If DHI stock assigned at the Aug 14th, 2026 expiration): $45.00
= ($.45 dividend per share x 100 shares)
(c) Capital Appreciation (If D.R. Horton Call option is assigned early on August 6th): -$589.00
+($140.00 strike price - $145.89 stock price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $140.00 strike price at the Aug. 14th options expiration): -$589.00
+($140.00 - $145.89) * 100 shares

1. Total Net Profit [If option exercised early on the last business day prior to the August 6th ex-dividend date)]: +$178.00

= (+$767.00 option income +$0.00 dividend income -$589.00 capital appreciation); or

2. Total Net Profit (If stock shares assigned at $140.00 strike price at the Aug. 14th, 2026 expiration): +$223.00

= (+$767.00 option income + $45.00 dividend income - $589.00 capital appreciation)

1. Absolute Return-on-Investment (If option exercised early on August 5th): +1.3%

= +$178.00/$13,787.67

Annualized Return-on-Investment: +67.3%

= (+$178.00/$13,787.67) * (365/7 days); or

2. Absolute Return-on-Investment (If D.R. Horton shares assigned at $140.00 at the August 14th, 2026 options expiration date): +1.6%

= +$223.00/$13,787.67

Annualized Return-on-Investment (If shares assigned at the 8/14/2026 options expiration date): +39.4%

= (+$223.00/$13,787.67) * (365/15 days)

Established Covered Call in NVIDIA Corporation

2026-07-29T11:21:15.580-04:00

A Covered Call position of 16 days duration was established today in NVIDIA Corporation (ticker NVDA). My buy/write net debit limit order at $183.30 was executed and the time value (aka extrinsic value) was $6.70 per share [$7.72 Call option premium - ($191.02 stock purchase price - $190.00 strike price)]. A slightly in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $190.00 strike price) on the 8/14/2026 options expiration date was 51.3% when this transaction was executed. NVIDIA's next earnings report is on 8/26 which, as preferred, is after the 8/14 expiration date. But the Implied Volatility of the Call option sold was high at 44.0 given the uncertainty of the four megacap companies reporting earnings this week (Meta, Microsoft, Amazon, and Apple) and their commentary about their capital expenditures -- which will also influence NVIDIA's stock price reaction. I'm optimistic the four will continue their large capex spending plans given Alphabet's increase in capex plans communicated during their recent earnings report.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $190.00 strike price) and therefore assigned on its August 14th, 2026 options expiration date is +3.7% absolute return-on-investment (equivalent to +83.3% annualized return-on-investment for the next 16 days). This very high potential roi result stems from both the close to at-the-money strike price selected as well as the high Implied Volatility of the Call option sold.

NVIDIA Corporation (NVDA) -- New Covered Call Position

The buy/write net limit order transaction was as follows:
7/29/2026 Bought 100 NVIDIA Corporation shares at $191.02. Note: NVIDIA's stock price was very oversold this morning when this transaction was executed -- the RSI(2) was only 5.5.

7/29/2026 Sold 1 NVIDIA 8/14/2026 $190.00 Call option @ $7.72 per share. The Implied Volatility of this Call was 44.0 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 19.8.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $18,330.67
= ($191.02 - $7.72) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$771.33
= ($7.72 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $190.00 strike price) on the 8/14/2026 options expiration date): -$102.00
+($190.00 strike price - $191.02 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares are in-the money and therefore assigned at the $190.00 strike price on the 8/14/2026 options expiration date): +$669.33

= (+$771.33 option income + $0.00 dividend income - $102.00 capital appreciation)

Potential Absolute Return-on-Investment (If 100 NVIDIA shares assigned (i.e. sold) at the $190.00 strike price on the 8/14/2026 options expiration date): +3.7%

= (+$669.33/$18,330.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $190.00 strike price on the 8/14/2026 options expiration date): +83.3%
= (+$669.33/$18,330.67) * (365/16 days)

Established Covered Calls Position in IBM Corporation

2026-07-27T11:44:27.113-04:00

Today a Covered Calls position was established in IBM Corp. (ticker symbol IBM) when the Covered Calls Advisor's buy/write limit order was executed -- 200 shares were purchased at $217.67 and two August 21st, 2026 Call options were sold at $16.65 per share at the $205.00 strike price. Therefore, a net debit price of $201.02 which is a time value of $3.98 per share [$16.65 Call options price - ($217.67 stock price - $205.00 strike price)]. This is a moderately in-the-money position since its probability of closing in-the-money on the 8/21/2026 options expiration date was 69.6% when this position was established.

Two potential return-on-investment results for this position are highlighted below and includes the possibility of early assignment since a quarterly ex-dividend of $1.69 per share (3.2% annualized dividend yield) goes ex-dividend on August 10th which is prior to the August 21st options expiration date. Either result would be attractive since they both substantially exceed my preferred minimum annualized return-on-investment criteria when using my Dividend Capture Strategy. Also, as I prefer, there is no intervening quarterly earnings report since IBM's next quarterly earnings report on October 28th, 2026 is after the options expiration date for this position. Finally, IBM passed every criterion in my "Overall Rating Versus Peers" stock screener.

As detailed below, two potential return-on-investment results are:

+2.0% absolute return (equivalent to +51.5% annualized return for the next 14 days) if the stock is assigned early (business day prior to the August 10th ex-dividend date); OR

+2.8% absolute return (equivalent to +41.1% annualized return over the next 25 days) if the stock is assigned on the August 21st, 2026 options expiration date.

IBM Corporation (IBM) -- New Covered Calls Position
The buy/write transaction was:
7/27/2026 Bought 200 IBM shares @ $217.67
7/27/2026 Sold 2 IBM 8/21/2026 $205.00 Call options @ $16.65 The Implied Volatility of the Calls was 40.4 when this transaction occurred, well above the current VIX of 19.2.
8/10/2026 Upcoming quarterly ex-dividend of $1.69 per share

Two possible overall performance results (including commissions) for this IBM Covered Calls position are as follows:
Covered Calls Net Investment: $40,205.34
= ($217.67 - $16.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$3,328.66
= ($16.65 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on August 7th, the last business day prior to the August 10th ex-div date): +$0.00; or
(b) Dividend Income (If IBM stock assigned at the August 21st, 2026 options expiration date): +$338.00
= ($1.69 dividend per share x 200 shares)
(c) Capital Appreciation (If IBM Call options assigned early): -$2,534.00
+($205.00 strike price - $217.67 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $205.00 strike price at options expiration): -$2,534.00 = +($205.00 - $217.67) * 200 shares

1. Total Net Profit [If options exercised early]: +$794.66

= (+$3,328.66 options income +$0.00 dividend income -$2,534.00 capital appreciation); or

2. Total Net Profit (If IBM shares assigned at $205.00 at the August 21st expiration): +$1,132.66

= (+$3,328.66 options income +$338.00 dividend income -$2,534.00 capital appreciation)

1. Absolute Return-on-Investment [If option exercised early on August 7th (last business day prior to the 8/10/2026 ex-dividend date)]: +2.0%

= +$794.66/$40,205.34

Annualized Return-on-Investment (If option exercised early): +51.5%

= (+$794.66/$40,205.34) * (365/14 days); or

2. Absolute Return-on-Investment (If IBM shares assigned at $205.00 at the Augus 21st, 2026 options expiration): +2.8%

= +$1,132.66/$40,205.34

Annualized Return-on-Investment (If IBM shares assigned at $205.00 at the August 21st options expiration date): +41.1%

= (+$1,132.66/$40,205.34) * (365/25 days)