Covered Calls Advisor

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)

July 24th, 2026 Options Expiration Results

2026-07-25T06:49:54.597-04:00

The Covered Calls Advisor Portfolio had two Covered Calls positions with July 24th, 2026 options expirations and both positions (IBM Corporation and NVIDIA Corporation) were assigned yesterday so they were closed out at their respective strike prices. The return-on-investment summary for each position is as follows:

1. IBM Corporation (IBM) -- +1.6% absolute return-on-investment (equivalent to +71.7% annualized return-on-investment) for the 8 days of this investment. This IBM Covered Call position had a $200.00 strike price and it closed at $214.19 yesterday. The original blog post showing the details of this position is here.

2. NVIDIA Corporation (NVDA) -- +2.3% absolute return-on-investment (equivalent to +84.3% annualized return-on-investment) for the 10 days of this investment. This NVIDIA Covered Calls position had a $202.50 strike price and it closed at $206.84 yesterday. The original blog post showing the details of this position is here.

There are two primary reasons why these annualized returns are so high: (1) these were short-term (i.e. 8 days and 10 days duration), and the rate of time value decay in the price of options increases (so the potential annualized roi normally also increases) as the duration of the initial position decreases; and (2) both positions also benefited from temporary upward spikes in the Implied Volatility of the Calls when the positions were established. The IBM position was established on the day after it reported disappointing earnings and the stock was plummeting by an intraday record of more than 25%. The NVIDIA position was established when its prior day closing price was $212.50 and the stock was purchased the following day when the price had declined to $207.61.

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

Covered Call Position Established in Alphabet Inc.

2026-07-23T12:30:19.866-04:00

Late this morning a new short-term Covered Call net debit buy/write limit order was established in Alphabet Inc. (ticker GOOGL) for the July 31st, 2026 expiration and at the $305.00 strike price. The stock price declined by over 7% this morning after yesterday afternoon's quarterly earnings results. Investors reacted negatively to the increased capex plan for this year and the negative free cash flow for this quarter. The order was placed at a $302.34 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $2.66 per share [$15.30 Call option premium - ($317.64 stock purchase price - $305.00 strike price)]. The probability that this position will be in-the-money and therefore assigned on its options expiration date was 76.1% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 8 days (equivalent to a +40.0% annualized return-on-investment).

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

The simultaneous buy/write transaction was as follows:
7/23/2026 Bought 100 shares of Alphabet Inc. stock @ $317.64 per share.
7/23/2026 Sold 1 Alphabet Inc. July 31st $305.00 Call option @ $15.30 per share.
Note: The Implied Volatility of the Call options was 37.4 when this transaction was executed which, as I prefer, is well above the current 19.0 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: $30,234.67
= ($317.64 - $15.30) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,529.33
= ($15.30 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Alphabet stock is above $305.00 strike price at the 7/31/2026 options expiration date): -$1,264.00
= ($305.00 strike price - $317.64 stock purchase price) * 100 shares

Total Net Profit Potential: +$265.33
= (+$1,529.33 option income +$0.00 dividend income - $1,264.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$265.33/$30,234.67
Potential Equivalent Annualized Return-on-Investment: +40.0%
= (+$265.33/$30,234.67) * (365/8 days)

Established Covered Calls in IAMGOLD Corporation

2026-07-21T11:04:42.847-04:00

A Covered Calls position of 32 days duration was established yesterday in IAMGOLD Corporation (ticker IAG). My buy/write net debit limit order at $13.00 was executed and the time value was $1.00 per share [$1.10 Call options premium - ($14.10 stock purchase price - $14.00 strike price)]. An in-the-money strike price was established with the probability that IAMGOLD's stock will close in-the-money (i.e. above the $14.00 strike price) on the 8/21/2026 options expiration date was 48.4% when this transaction was executed.

IAMGOLD Corporation (NYSE: IAG, TSX: IMG) is a Canada-based intermediate gold producer with mines in Canada (Côté Gold, Westwood) and Burkina Faso (Essakane), plus exploration projects like Nelligan in Quebec. Its flagship Côté Gold, run in a 70/30 partnership with Sumitomo Metal Mining, is among Canada's largest producing gold mines and drives growth beyond typical mid-tier peers. Geographic diversification spreads jurisdictional risk while strong Q1 2026 results (~$1.03B revenue, $525M free cash flow) reflect high leverage to gold prices. Competitively, low all-in sustaining costs, disciplined capital allocation, and shareholder returns support its position, though West African exposure and development execution risk remain factors.

IAMGOLD has an intervening quarterly earnings report on August 6th but given the associated very high Implied Volatility of 62.2% as well as the likelihood of a strong report given that spot gold is now 20% higher than at this time last year and IAMGOLD's positive production growth prospects, I am confident in this investment. Its stock passed all criteria on three of my stock screeners (Acquirers Multiple, Energy and Materials Sectors, and Quality+Value+Growth). Also, the 9 analysts now following IAMGOLD have an average 1-year target price of $26.13 (+85.3% above the stock purchase price) and LSEG Stock Reports Plus rates it as a 9 for both its Average Score and Optimized Score (on a scale of 1 to 10).

As detailed below, a potential return-on-investment result if IAMGOLD's share price is in-the-money (i.e. above the $14.00 strike price) and therefore assigned on its August 21st, 2026 options expiration date is +7.6% absolute return-on-investment (equivalent to +87.1% annualized return-on-investment for the next 32 days).

IAMGOLD Corporation (IAG) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/20/2026 Bought 600 IAMGOLD Corporation shares at $14.10.

7/20/2026 Sold 6 IAMGOLD 8/21/2026 $14.00 monthly Call options @ $1.10 per share. The Implied Volatility of these Calls was 62.2% when this position was established.

A possible overall performance result (including commissions) for this IAMGOLD Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $7,804.02
= ($14.10 - $1.10) * 600 shares + $4.02 commission

Net Profit:
(a) Options Income: +$655.98
= ($1.10 * 600 shares) - $4.02 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 600 IAMGOLD shares assigned (i.e. above the $14.00 strike price) on the 8/21/2026 options expiration date): -$60.00
+($14.00 strike price - $14.10 stock purchase price) * 600 shares

Total Net Profit Potential (If 600 IAG shares assigned at the $14.00 strike price on the 8/21/2026 options expiration date): +$595.98

= (+$655.98 options income + $0.00 dividend income - $60.00 capital appreciation)

Potential Absolute Return-on-Investment (If 600 IAMGOLD shares assigned (i.e. sold) at the $14.00 strike price on the 8/21/2026 options expiration date): +7.6%

= (+$595.98/$7,804.02)

Potential Annualized Return-on-Investment (If 600 IAMGOLD shares assigned at the $14.00 strike price on the 8/21/2026 options expiration date): +87.1%
= (+$595.98/$7,804.02) * (365/32 days)

July 17th, 2026 Options Expiration Results

2026-07-18T06:58:53.856-04:00

The Covered Calls Advisor Portfolio had one Covered Call position with a July 17th, 2026 options expiration date. The position in NVIDIA Corporation closed in-the-money at $202.81 so the Call option expired and the 200 shares were called away (i.e. sold) at the $187.50 strike price. A summary of results for this position is as follows:

NVIDIA Corporation (NVDA) -- +1.6% absolute return (equivalent to +38.9% annualized return-on-investment) for the 15 days of this investment. This Covered Call position was assigned at the $187.50 strike price since the stock closed in-the-money at $202.81 per share. The original blog post detailing this Covered Call 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 in NVIDIA Corporation

2026-07-16T13:20:29.212-04:00

A short-term Covered Calls position of 8 days duration was established today in NVIDIA Corporation (ticker NVDA). My buy/write net debit limit order at $199.36 was executed and the time value was $3.14 per share [$8.25 Call options premium - ($207.61 stock purchase price - $202.50 strike price)]. An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $202.50 strike price) on the 7/24/2026 options expiration date was 64.5% when this transaction was executed.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $202.50 strike price) and therefore assigned on its July 24th, 2026 options expiration date is +1.6% absolute return-on-investment (equivalent to +71.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/16/2026 Bought 200 NVIDIA Corporation shares at $207.61.

7/16/2026 Sold 2 NVIDIA 7/24/2026 $202.50 Call options @ $8.25 per share. The Implied Volatility of these Calls was 42.5 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 16.3.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $39,873.34
= ($207.61 - $8.25) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,648.66
= ($8.25 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $202.50 strike price) on the 7/24/2026 options expiration date): -$1,022.00
+($202.50 strike price - $207.61 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $202.50 strike price on the 7/24/2026 options expiration date): +$626.66

= (+$1,648.66 options income + $0.00 dividend income - $1,022.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $202.50 strike price on the 7/24/2026 options expiration date): +1.6%

= (+$626.66/$39,873.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +71.7%
= (+$626.66/$39,873.34) * (365/8 days)

Covered Calls Position Established in Uber Technologies Inc.

2026-07-15T13:45:43.741-04:00

This afternoon a buy/write net debit limit order was executed and 300 shares of Uber Technologies Inc.(ticker symbol UBER) stock were purchased at $72.97 and 3 July 31st, 2026 $70.00 Call options were sold at $4.12 per share -- a net debit of $68.85 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 $1.15 per share [$4.12 Call options premium - ($72.97 stock purchase price - $70.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 68.6% when this order was transacted. As preferred, the next quarterly earnings report on August 5th, 2026 is after the July 31st options expiration date. Uber passed all criteria in my Key Metrics stock screener:

As detailed below, a potential outcome for this Uber Technologies investment is +1.7% absolute return-on-investment for the next 16 days (equivalent to +37.9% annualized-return-on-investment) if the stock closes above the $70.00 strike price on the July 31st, 2026 options expiration date.

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

The net debit buy/write limit order was executed as follows:
7/15/2026 Bought 300 shares of Uber Technologies Inc. stock @ $72.97 per share.
7/15/2026 Sold 3 Uber July 31st, 2026 $70.00 Call options @ $4.12 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 38.6 when this position was established which, as preferred, is well above the current VIX of 15.9.

A possible overall performance result (including commissions) if this position is assigned on its 7/31/2026 options expiration date is as follows:
Covered Calls Net Investment: $20,657.01
= ($72.97 - $4.12) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,233.99
= ($4.12 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $70.00 strike price at the 7/31/2026 options expiration date): -$891.00
= ($70.00 - $72.97) * 300 shares

Potential Total Net Profit (If assigned at expiration): +$342.99
= (+$1,233.99 options income + $0.00 dividend income - $891.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.7%
= +$342.99/$20,657.01
Potential Equivalent Annualized-Return-on-Investment: +37.9%
= (+$342.99/$20,657.01) * (365/16 days)

Covered Call Position Established in IBM Corporation

2026-07-14T12:06:14.521-04:00

Today a short-term Covered Call position in IBM Corporation (IBM) was established when one hundred shares were purchased at $217.68 and one July 24th, 2026 Call option was sold at $22.20 per share at the $200.00 strike price. The buy/write net debit limit order at $195.48 was executed, so the time value was $4.52 per share [$22.20 Call option premium - ($217.68 stock purchase price - $200.00 strike price)]. An in-the-money Covered Call position was established with a 71.0% probability of assignment on the options expiration date when this buy/write limit order was executed. IBM stock was down an intraday record of over 25% this morning after they pre-announced disappointing quarterly revenues and earnings. I took advantage of the upward spike in implied volatility to 81.7 in the 7/24 $200 Call option and established this IBM Covered Call position.

As detailed below, a potential return-on-investment result is +2.3% absolute return-on-investment (equivalent to +84.3% annualized return-on-investment over the next 10 days) if the stock is assigned on the July 24th, 2026 options expiration date.

IBM Corporation (IBM) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
7/14/2026 Bought 100 IBM Corp. shares @ $217.68
7/14/2026 Sold 1 IBM 7/24/2026 $200.00 Call option @ $22.20 per share
Note: the Implied Volatility of the Call was 81.7 when this transaction was executed. As I prefer, this value greatly exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 16.3.

A possible overall performance result (including commission) for this IBM Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $19,548.67
= ($217.68 - $22.20) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$2,219.33
= ($22.20 * 100 shares) - $.67 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If IBM shares assigned at the $200.00 strike price on the options expiration date): -$1,768.00
+($200.00 strike price - $217.68 stock purchase price) * 100 shares

Total Net Profit (If IBM shares assigned at the $200.00 strike price at the 7/24/2026 expiration date): +$451.33

= (+$2,219.33 option income + $0.00 - $1,768.00 capital appreciation)

Absolute Return-on-Investment (If IBM shares assigned at the $200.00 strike price on the July 24th, 2026 options expiration date): +2.3%

= +$451.33/$19,548.67

Annualized Return-on-Investment (If IBM stock assigned at the $200.00 strike at the 7/24/2026 options expiration date): +84.3%

= (+$451.33/$19,548.67) * (365/10 days)

Established Covered Calls in NVIDIA Corporation

2026-07-02T11:06:36.038-04:00

A Covered Calls position of 15 days duration was established today in NVIDIA Corporation (ticker NVDA). My buy/write net debit limit order at $184.54 was executed and the time value was $2.96 per share [$11.25 Call options premium - ($195.79 stock purchase price - $187.50 strike price)]. An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $187.50 strike price) on the 7/17/2026 options expiration date was 69.3% when this transaction was executed.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $187.50 strike price) and therefore assigned on its July 17th, 2026 options expiration date is +1.6% absolute return-on-investment (equivalent to +38.9% annualized return-on-investment for the next 15 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
7/2/2026 Bought 200 NVIDIA Corporation shares at $195.79.

7/2/2026 Sold 2 NVIDIA 7/17/2026 $187.50 Call options @ $11.25 per share. The Implied Volatility of these Calls was 39.4% 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 16.2.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $36,909.34
= ($195.79 - $11.25) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,248.66
= ($11.25 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $187.50 strike price) on the 7/17/2026 options expiration date): -$1,658.00
+($187.50 strike price - $195.79 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +$590.66

= (+$2,248.66 options income + $0.00 dividend income - $1,658.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $187.50 strike price on the 7/17/2026 options expiration date): +1.6%

= (+$590.66/$36,909.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $187.50 strike price on the 7/17/2026 options expiration date): +38.9%
= (+$590.66/$36,909.34) * (365/15 days)

June 18th, 2026 Options Expiration Results

2026-06-19T08:10:15.424-04:00

The Covered Calls Advisor Portfolio had two Covered Calls positions with June 18th, 2026 options expirations and both positions (Insulet Corporation and NVIDIA Corporation) 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. Insulet Corporation (PODD) -- +3.0% absolute return-on-investment (equivalent to +49.0% annualized return-on-investment) for the 22 days of this investment. This Insulet Corp. Covered Call position had a $135.00 strike price and it closed in-the-money at $145.76 yesterday. The original blog post showing the details of this position is here.

2. Nvidia Corporation (NVDA) -- +1.9% absolute return-on-investment (equivalent to +61.7% annualized return-on-investment) for the 15 days of this investment. This NVIDIA Covered Calls position had a $210.00 strike price and it closed in-the-money at $210.69 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. During my upcoming vacation period, I expect new positions will be more limited than usual and available cash will be maintained in a Schwab Money Market Fund (SWVXX). However, 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

June 12th, 2026 Options Expiration Results

2026-06-15T09:54:47.025-04:00

The Covered Calls Advisor Portfolio had two Covered Calls positions with June 12th, 2026 options expiration dates. The position in The Cigna Group closed in-the-money at $298.00 so the Call option expired and the 100 shares were called away (i.e. sold) at the $270.00 strike price. The other position in Pan American Silver Corporation closed out-of-the-money so the Call option expired and the 300 shares remained in the Covered Calls Advisor Portfolio. This morning I sold the 300 Pan American shares. A summary of results for each of these positions is as follows:

1. The Cigna Group (CI) -- +1.7% absolute return (equivalent to +36.3% annualized return-on-investment) for the 17 days of this investment. This Covered Call position was assigned at the $270.00 strike price since the stock closed in-the-money at $298.00 per share at last Friday's market close. The original blog post detailing this Covered Call position is here.

2. Pan American Silver Corporation (PAAS) -- This Covered Call position closed last Friday at $48.14 which was well below its $56.00 strike price, so the three Call option expired and 300 PAAS shares remained in the Covered Calls Advisor Portfolio. The most recent blog post detailing this position is here. This morning I sold the 300 shares at $51.935 per share. The result for this position was -7.1% absolute return (equivalent to -76.6% annualized return-on-investment) for the 34 days of this investment.

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

Closed Out Covered Call Position in T-Mobile USA Inc.

2026-06-09T10:00:26.749-04:00

Last Friday, the Covered Call position in T-Mobile USA Inc. (ticker TMUS) closed out-of-the-money at $178.10 which was below its $185.00 strike price. Today I decided to close out the position by selling the 100 shares at a net loss of $343.00.

As detailed below, the return-on-investment results are: -1.9% absolute return-on-investment (equivalent to -48.8% annualized return-on-investment) for the 14 days of this investment.

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

The overall performance result (including commission) for this Covered Call position is as follows:
T-Mobile Covered Call Cost Basis: $18,315.67
= ($188.74 - $5.59) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$559.00
= ($5.59 * 100 shares)
(b) Dividend Income: +$102.00
= ($1.02 dividend per share x 100 shares)
(c) Capital Loss (100 shares sold at $178.70 per share): -$1,004.00
+($178.70 stock selling price - $188.74 stock purchase price) * 100 shares

Total Net Loss: -$343.00

= (+$559.00 option income + $102.00 dividend income - $1,004.00 capital appreciation)

Absolute Return-on-Investment: -1.9%

= -$343.00/$18,315.67

Annualized Return-on-Investment: -48.8%

= (-$343.00/$18,315.67) x (365/14 days)

June 5th, 2026 Options Expiration Results

2026-06-06T07:46:13.832-04:00

The Covered Calls Advisor Portfolio had two Covered Calls positions with June 5th, 2026 options expiration dates. The position in NVIDIA Corporation closed slightly in-the-money at $205.10 so the Call option expired and the 100 shares were called away (i.e. sold) at the $205.00 strike price. The other position in T-Mobile USA Inc. closed out-of-the-money so the Call option expired and the 100 shares remain in the Covered Calls Advisor Portfolio. A summary of results for each of these positions is as follows:

1. NVIDIA Corporation (NVDA) -- +1.5% absolute return (equivalent to +61.7% annualized return-on-investment) for the 8 days of this investment. This Covered Calls position was assigned at the $205.00 strike price since the stock closed in-the-money at $205.10 per share. The original blog post detailing this Covered Call position is here.

2. T-Mobile USA Inc. (TMUS) -- This Covered Call position closed yesterday at $178.10 which was below its $185.00 strike price, so the one Call option expired and 100 T-Mobile 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 T-Mobile 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

Established Covered Calls in NVIDIA Corporation

2026-06-04T14:00:49.453-04:00

A Covered Calls position of 15 days duration was established yesterday in NVIDIA Corporation (ticker NVDA). My buy/write net debit limit order at $206.28 was executed and the time value was $3.72 per share [$13.56 Call options premium - ($219.84 stock purchase price - $210.00 strike price)]. An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $210.00 strike price) on the 6/18/2026 options expiration date was 69.2% when this transaction was executed.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $210.00 strike price) and therefore assigned on its June 18th, 2026 options expiration date is +1.9% absolute return-on-investment (equivalent to +61.7% annualized return-on-investment for the next 15 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
6/3/2026 Bought 200 NVIDIA Corporation shares at $219.84.

6/3/2026 Sold 2 NVIDIA 6/18/2026 $210.00 Call options @ $13.56 per share. The Implied Volatility of these Calls was 42.4 when this position was established, which is well above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX).

6/4/2026 Ex-dividend of $.25 per share.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $41,257.34
= ($219.84 - $13.56) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$2,710.66
= ($13.56 * 200 shares) - $1.34 commission
(b) Dividend Income: +$50.00 = $.25 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $210.00 strike price) on the 6/18/2026 options expiration date): -$1,968.00
+($210.00 strike price - $219.84 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $210.00 strike price on the 6/18/2026 options expiration date): +$792.56

= (+$2,710.56 options income + $50.00 dividend income - $1,968.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $210.00 strike price on the 6/18/2026 options expiration date): +1.9%

= (+$792.56/$41,257.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $210.00 strike price on the 6/18/2026 options expiration date): +61.7%
= (+$792.56/$41,257.34) * (365/15 days)

May 29th, 2026 Options Expiration Results

2026-05-30T07:48:34.519-04:00

The Covered Calls Advisor Portfolio had two Covered Calls positions with May 29th, 2026 options expirations and both positions (IBM Corporation and NVIDIA Corporation) were assigned yesterday so they were closed out at their respective strike prices. The return-on-investment summary for each position is as follows:

1. IBM Corporation (IBM) -- +3.1% absolute return-on-investment (equivalent to +45.0% annualized return-on-investment) for the 25 days of this investment. This IBM Covered Call position had a $225.00 strike price and it closed at $297.80 yesterday. The most recent blog post showing the details of this position is here.

2. Nvidia Corporation (NVDA) -- +1.2% absolute return-on-investment (equivalent to +53.7% annualized return-on-investment) for the 8 days of this investment. The owner of these three NVDA Calls exercised their option yesterday to buy the 300 NVIDIA shares despite the stock closing below the $212.50 strike price at $211.14 per share. 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

Covered Call Position Established in Insulet Corporation

2026-05-27T15:22:00.511-04:00

Today a Covered Call position in Insulet Corporation (PODD) was established when one hundred shares were purchased at $144.07 and one June 18th, 2026 Call option was sold at $12.95 per share at the $135.00 strike price. The buy/write net debit limit order at $131.12 was executed, so the time value was $3.88 per share [$12.95 Call option premium - ($144.07 stock purchase price - $135.00 strike price)]. An in-the-money Covered Calls position was established with a 66.9% probability of assignment on the options expiration date when this buy/write limit order was executed.

Insulet Corporation makes, sells, and develops its proprietary Omnipod System, an automated insulin pump for insulin-dependent diabetics in the U.S. and Internationally. Their business operates on a razor-and-blade model centered on its Omnipod system, pairing its low-cost controller (the razor hardware) with its disposable (replaced every 3 days) insulin pods (the consumable blades) that generate recurring, high-margin revenue and strong cash flow visibility. Financially, the company has delivered a decade of consistent high growth, with revenue expanding from under $1B in 2020 to ~$2.7B in 2025 (roughly a 25–30% annual growth rate in recent years), including its 10th consecutive year of 20%+ growth and accelerating ~30% growth in 2025. Profitability has scaled alongside revenue, with gross margins around ~70%+ and operating leverage improving as volumes increase, though near-term earnings can fluctuate due to reinvestment in sales and R&D. Looking forward, management continues to guide to ~20%+ revenue growth with even faster EPS expansion, driven by international expansion, penetration of the large Type 2 diabetes market, and deeper integration with leading automated insulin delivery ecosystems such as Dexcom's G7 and Abbott's FreeStyle Libre. Overall, Insulet offers investors a rare combination of durable recurring revenue, strong historical execution, and a long runway for growth in an underpenetrated global market.

Insulet is highly rated by analysts. The average target price of the 25 analysts currently covering the company is +81.0% above today's stock purchase price. In addtion, Morningstar has a 5-star strong buy rating and CFRA a 4-star buy rating.

As detailed below, a potential return-on-investment result is +3.0% absolute return-on-investment (equivalent to +49.0% annualized return-on-investment over the next 22 days) if the stock is assigned on the June 18th, 2026 options expiration date.

Insulet Corporation (PODD) -- New Covered Call Position
The simultaneous buy/write transaction today was as follows:
5/27/2026 Bought 100 Insulet Corp. shares @ $144.07
5/27/2026 Sold 1 PODD 6/18/2026 $135.00 Call option @ $12.95 per share
Note: the Implied Volatility of the Call was 54.2 when this transaction was executed. As I prefer, this value greatly exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 16.5.

A possible overall performance result (including commission) for this Insulet Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $13,112.67
= ($144.07 - $12.95) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,294.33
= ($12.95 * 100 shares) - $.67 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If Insulet shares assigned at the $135.00 strike price on the options expiration date): -$907.00
+($135.00 strike price - $144.07 stock purchase price) * 100 shares

Total Net Profit (If Insulet shares assigned at the $135.00 strike price at the 6/18/2026 expiration date): +$387.33

= (+$1,294.33 option income + $0.00 - $907.00 capital appreciation)

Absolute Return-on-Investment (If PODD shares assigned at the $135.00 strike price on the June 18th, 2026 options expiration date): +3.0%

= +$387.33/$13,112.67

Annualized Return-on-Investment (If Insulet stock assigned at the $135.00 strike at the 6/18/2026 options expiration date): +49.0%

= (+$387.33/$13,112.67) * (365/22 days)

Established Covered Calls in NVIDIA Corporation

2026-05-27T14:59:17.516-04:00

Today I established a short-term Covered Calls position in NVIDIA Corporation (ticker NVDA). My buy/write net debit limit order at $202.18 was executed and the time value was $2.82 per share [$9.14 Call options premium - ($211.32 stock purchase price - $205.00 strike price)]. An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $205.00 strike price) on the 6/5/2026 options expiration date was 67.0% when this transaction was executed.

I prefer not to hold positions on earnings reporting dates and since NVIDIA reported their earnings just last week (which were stellar in all respects), I decided to continue my normal practice of establishing weekly Covered Call positions in NVIDIA each week.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $205.00 strike price) and therefore assigned on its June 5th, 2026 options expiration date is +1.5% absolute return-on-investment (equivalent to +61.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
5/27/2026 Bought 200 NVIDIA Corporation shares at $211.32.

5/27/2026 Sold 2 NVIDIA 6/5/2026 $205.00 Call options @ $9.14 per share. The Implied Volatility of these Calls was 41.8 when this position was established, which is well above (as preferred) the current 16.6 value of VIX.

6/4/2026 Ex-dividend of $.25 per share.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $40,437.34
= ($211.32 - $9.14) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,829.34
= ($9.14 * 200 shares) - $2.01 commission
(b) Dividend Income: +$50.00 = $.25 per share x 200 shares
(c) Capital Appreciation (If 200 NVIDIA shares assigned (i.e. above the $205.00 strike price) on the 6/5/2026 options expiration date): -$1,264.00
+($205.00 strike price - $211.32 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 NVIDIA shares assigned at the $202.00 strike price on the 6/5/2026 options expiration date): +$615.34

= (+$1,829.34 options income + $50.00 dividend income - $1,264.00 capital appreciation)

Potential Absolute Return-on-Investment (If 200 NVIDIA shares assigned (i.e. sold) at the $205.00 strike price on the 6/5/2026 options expiration date): +1.5%

= (+$615.34/$40,437.34)

Potential Annualized Return-on-Investment (If 200 NVIDIA shares assigned at the $205.00 strike price on the 6/5/2026 options expiration date): +61.7%
= (+$615.34/$40,437.34) * (365/9 days)

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

2026-05-26T15:19:46.794-04:00

Today a short-term Covered Call position was established in T-Mobile US, Inc. (ticker symbol TMUS). My buy/write limit order was executed when 100 shares were purchased at $188.74 and 1 June 5th, 2026 weekly Call option was sold at $5.59 per share at the $185.00 strike price. The time value (aka extrinsic value) profit potential in the Call option was $1.85 per share [$5.59 Call option premium - ($188.74 stock price - $185.00 strike price)] when this transaction executed. There is also an upcoming ex-dividend of $1.02 per share this Friday (May 29th, 2026). When this position was established, the probability that the Call will be in-the-money on the options expiration date was 64.9%. Since it is unlikely that the Call option will be exercised early (i.e. on the day prior this Friday's ex-dividend date), only the potential return-on-investment results are shown below if the stock is in-the-money on its June 5th options expiration date. Important to the Covered Calls Advisor, T-Mobile's next quarterly earnings report on July 22nd is after the June 6th options expiration date.

Analysts' average target price for T-Mobile is currently $257.90 which is +36.6% above today's stock purchase price. Fundamentally speaking, T-Mobile is Buy rated by LSEG Stocks Plus Report (on a scale of 1 to 10) with an Average Score of 6 and an Optimized Score of 7. It is rated 4* by Morningstar and 5* Strong Buy by CFRA.

As detailed below, a potential return-on-investment result is: +1.6% absolute return (equivalent to +57.2% annualized return-on-investment over the next 10 days) if the stock is assigned on the June 5th options expiration date.

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

The buy/write transaction was:
5/26/2026 Bought 100 T-Mobile shares @ $188.74.
5/26/2026 Sold 1 T-Mobile 6/5/2026 $185.00 Call option @ $5.59 per share. The Implied Volatility of the Call option was 29.3 when this transaction was executed.
5/29/2026 Upcoming quarterly ex-dividend of $1.02 per share.

A possible overall performance result (including commission) for this Covered Call position are as follows:
T-Mobile Covered Call Cost Basis: $18,315.67
= ($188.74 - $5.59) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$559.00
= ($5.59 * 100 shares)
(b) Dividend Income (T-Mobile stock assigned at the June 5th, 2026 options expiration): +$102.00
= ($1.02 dividend per share x 100 shares)
(c) Capital Appreciation (If shares assigned at the $185.00 strike price on the 6/5/2026 options expiration date): -$374.00
+($185.00 - $188.74) * 100 shares

Potential Total Net Profit (If T-Mobile shares assigned at $185.00 strike price at the June 5th, 2026 options expiration date): +$287.00

= (+$559.00 option income + $102.00 dividend income - $374.00 capital appreciation)

Potential Absolute Return (If T-Mobile shares assigned at the $185.00 strike price at the June 5th, 2026 options expiration date): +1.6%

= +$287.00/$18,315.67

Potential Annualized Return-on-Investment (If T-Mobile shares assigned at the $185.00 strike price at the June 5th, 2026 options expiration date): +57.2%

= (+$287.00/$18,315.67) x (365/10 days)

Covered Call Position Established in The Cigna Group

2026-05-26T14:56:26.674-04:00

Today a Covered Call position was established in The Cigna Group (ticker symbol CI) using my Dividend Capture Strategy (see post describing this strategy here). One hundred Cigna shares were purchased at $280.79 and one June 12th, 2026 Call option was sold for $13.75 per share at the $270.00 strike price. The buy/write net debit limit order at $267.04 was executed, so the potential time value profit is $2.96 per share [$13.75 Call option premium - ($280.79 stock purchase price - $270.00 strike price)]. There is an upcoming quarterly ex-dividend of $1.56 (annual dividend yield of 2.2%) on June 4th, so the potential return-on-investment results detailed below for this position includes this dividend income.

As preferred by the Covered Calls Advisor, Cigna's next quarterly earnings report on July 30th, 2026 will be after the June 12th options expiration date. Given the Covered Calls Advisor's current Overall Market Meter indicator of Neutral, an in-the-money Covered Call position was established with the probability the stock is in-the-money on the options expiration date was 73.2%.

Cigna is rated a Buy with a 7 Average Score and 8 Optimized Score by LSEG Stock Reports Plus and the average analysts' target price is $339.96 (+21.1% above today's stock purchase price). It is also rated as 4* Buys by both Morningstar and CFRA.

As detailed below, two potential return-on-investment results are: (1) +1.1% absolute return-on-investment (equivalent to +44.9% annualized return-on-investment over the next 9 days) if the stock is assigned on the day prior to the June 4th ex-dividend date; or (2) +1.7% absolute return-on-investment (equivalent to +36.3% annualized return-on-investment over the next 17 days) if the stock is assigned on the June 12th, 2026 options expiration date.

The Cigna Group (CI) -- New Covered Call Position
The buy/write transaction today was as follows:
5/26/2026 Bought 100 Cigna Group shares @ $280.79
5/26/2026 Sold 1 Cigna 6/12/2026 $270.00 Call option @ $13.75 per share. The Implied Volatility of this Call was 28.6 when this transaction was executed.
6/4/2026 Upcoming quarterly ex-dividend of $1.56 per share

Two potential overall performance results (including commissions) for this Cigna Covered Call position are as follows:
Covered Call Cost Basis: $26,704.67
= ($280.79 - $13.75) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,374.33
= ($13.75 * 100 shares) - $.67 commissions
(b) Dividend Income (If Cigna shares assigned on the day prior to the June 4th ex-dividend date): +$0.00
(b) Dividend Income (If Cigna shares assigned at the June 12th, 2026 options expiration date): +$156.00
= ($1.56 dividend per share x 100 shares)

+($270.00 strike price - $280.79 stock purchase price) * 100 shares

(c) Capital Appreciation (If Cigna shares assigned at the $270.00 strike price at options expiration): -$1,079.00
+($270.00 - $280.79) * 100 shares

1. Total Net Profit (If Cigna shares assigned on the day prior to the June 4th ex-dividend date): +$295.33

= (+$1,374.33 option income + $0.00 dividend income - $1,079.00 capital appreciation)

2. Total Net Profit (If Cigna shares assigned at the June 12th, 2026 options expiration date): +$451.33

= (+$1,374.33 option income + $156.00 dividend income - $1,079.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If Cigna shares assigned on the day prior to the June 4th ex-dividend date) : +1.1%

= +$295.33/$26,704.67

Potential Annualized Return-on-Investment: +44.9%

= (+$349.33/$27,150.67) *(365/9 days)

2. Potential Absolute Return-on-Investment (If Cigna shares assigned at the June 12th, 2026 options expiration date): +1.7%

= +$451.33/$26,704.67

Potential Annualized Return-on-Investment: +36.3%

= (+$451.33/$26,704.67) *(365/17 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position. As shown below with this Cigna Group position, all nine criteria are met.

Continued Covered Calls Position in Pan American Silver Corporation

2026-05-26T10:05:15.492-04:00

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

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

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

The buy/write transaction was:

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

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

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

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

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

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

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

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

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

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

Established Covered Calls in NVIDIA Corporation

2026-05-21T15:37:44.004-04:00

Today I established a short-term Covered Calls position in NVIDIA Corporation (ticker NVDA). My buy/write net debit limit order at $210.02 was executed and the time value was $2.48 per share [$9.24 Call options premium - ($219.26 stock purchase price - $212.50 strike price)]. An in-the-money strike price was established with the probability that NVIDIA's stock will close in-the-money (i.e. above the $212.50 strike price) on the 5/29/2026 options expiration date was 69.6% when this transaction was executed.

I prefer not to hold positions on earnings reporting dates and since NVIDIA reported their earnings yesterday (which were stellar in all respects), I decided to re-establish my normal practice of establishing weekly Covered Call positions in NVIDIA each week.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $212.50 strike price) and therefore assigned on its May 29th, 2026 options expiration date is +1.2% absolute return-on-investment (equivalent to +53.7% annualized return-on-investment for the next 8 days).

NVIDIA Corporation (NVDA) -- New Covered Calls Position

Today's buy/write net limit order transaction was as follows:
5/21/2026 Bought 300 NVIDIA Corporation shares at $219.26.

5/21/2026 Sold 3 NVIDIA 5/29/2026 $212.50 Call options @ $9.24 per share. The Implied Volatility of these Calls was 39.5 when this position was established, which is well above (as preferred) the current value of VIX.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $63,008.01
= ($219.26 - $9.24) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$2,769.99
= ($9.24 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 NVIDIA shares assigned (i.e. above the $212.50 strike price) on the 5/29/2026 options expiration date): -$2,028.00
+($212.50 strike price - $219.26 stock purchase price) * 300 shares

Total Net Profit Potential (If 300 NVIDIA shares assigned at the $212.50 strike price on the 5/29/2026 options expiration date): +$741.99

= (+$2,769.99 options income + $0.00 dividend income - $2,028.00 capital appreciation)

Potential Absolute Return-on-Investment (If 300 NVIDIA shares assigned (i.e. sold) at the $212.50 strike price on the 5/29/2026 options expiration date): +1.2%

= (+$741.99/$63,008.01)

Potential Annualized Return-on-Investment (If 300 NVIDIA shares assigned at the $212.50 strike price on the 5/29/2026 options expiration date): +53.7%
= (+$741.99/$63,008.01) * (365/8 days)

Continued Covered Calls Position in IBM Corporation

2026-05-18T14:19:22.665-04:00

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

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

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

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

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

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

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

Potential Absolute Return-on-Investment: +3.1%

= +$1,375.32/$44,581.34

Potential Annualized Return-on-Investment: +45.0%

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

Closed Out Covered Calls Position in Wells Fargo & Company

2026-05-18T14:00:35.287-04:00

Last Friday, the Covered Calls position in Wells Fargo & Company (ticker WFC) closed out-of-the-money at $73.42 which was below its $78.00 strike price. When Wells Fargo's stock price advanced to $74.33 in this afternoon's trading session, I decided to close out the position by selling the 300 shares at a net loss of $776.01.

As detailed below, the return-on-investment results are: -3.3% absolute return (equivalent to -87.2% annualized return-on-investment) for the 14 days of this investment.

Wells Fargo & Company (WFC) -- Closed Out Covered Calls Position
The buy/write transaction was:
5/4/2026 Bought 300 Wells Fargo shares @ $80.07
5/4/2026 Sold 3 Wells Fargo 2/13/2026 $84.00 Call options @ $3.82
5/8/2026 Quarterly ex-dividend of $.45 per share
5/15/2026 Three WFC Call options closed out-of-the-money, so the Call options expired and 300 Wells Fargo shares remained in the Covered Calls Advisor Portfolio.
5/18/2026 Closed out this Wells Fargo Covered Calls position by selling the 300 shares at $74.33 per share.

The overall performance results (including commissions) for this Wells Fargo Covered Calls position are as follows:
Covered Calls Net Investment: $23,210.01
= ($80.07 - $2.71) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$810.99
= ($2.71 * 300 shares) - $2.01 commission
(b) Dividend Income: +$135.00
= ($.45 dividend per share x 300 shares)

Total Net Loss: -$776.01

= (+$810.99 options income + $135.00 dividend income - $1,722.00 capital appreciation)

Absolute Return-on-Investment: -3.3%

= -$776.01/$23,210.01

Annualized Return-on-Investment: -87.2%

= (-$776.01/$23,210.01) * (365/14 days)