Covered Calls Advisor

Continuation of Covered Call Position in Alphabet Inc.

2026-11-04T11:11:51.607-05:00

The Covered Calls Advisor Portfolio has a Covered Call position in Alphabet Inc. (ticker GOOGL) with 100 shares which expired on Oct. 23rd with the stock at $320.21 which was below the $340.00 strike price. Alphabet's stock had a huge decline to the low $280s when it missed earnings expectations when it reported its quarterly earnings on October 28th. Today this position was continued by rolling down-and-out to the November 20th, 2026 options expiration date at the $300.00 strike price by selling-to-open one GOOGL Call at $6.51 per share when Alphabet's stock price was $295.90.

Alphabet Inc. (GOOGL) -- Continuation of Covered Call Position

11/4/2026 Continued Covered Call position by selling 1 GOOGL November 20th, 2026 $300 Call option at $6.51 per share when the stock price was $295.90.

A possible overall performance result (including commissions) if the stock is in-the-money on its options expiration date would be as follows:
Covered Call Cost Basis: $33,582.67
= ($347.53 - $11.71) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,820.66
= ($11.71 + $6.51) * 100 shares) - $1.34
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Alphabet stock is above $300.00 strike price at the 11/20/2026 options expiration date): -$4,753.00
= ($300.00 strike price at options expiration - $347.53 stock purchase price) * 100 shares

Total Net Loss Potential: -$2,932.34
= (+$1,820.66 option income + $0.00 dividend income - $4,753.00 capital appreciation)

Potential Absolute Return-on-Investment: -8.7%
= -$2,932.34/$33,582.67
Potential Equivalent Annualized Return-on-Investment: -86.1%
= (-$2,932.34/$33,582.67) * (365/37 days)

October 30th, 2026 Options Expiration Results

2026-10-31T10:17:52.273-04:00

The Covered Calls Advisor Portfolio had one Covered Call position in NVIDIA Corporation with an October 30th, 2026 options expiration date. This position closed well out-of-the-money yesterday so the Call option expired and 100 NVIDIA shares remain in the Covered Calls Advisor Portfolio. This position history to-date is as follows:

NVIDIA Corporation (NVDA) -- This Covered Call position closed yesterday at $204.64 which was well below its $225.00 strike price, so the one Call option expired and 100 NVIDIA shares now remain in the Covered Calls Advisor Portfolio. The most recent blog post detailing this position is here. Early in this upcoming week I will decide to either continue this Covered Call position by selling one Call option against the 100 NVIDIA shares currently held or close out the position at a net loss by selling these shares.

So far in 2026, I have closed out 25 consecutive NVIDIA Covered Call positions profitably without a single losing position; so, it is a difficult decision whether to try to repair this currently losing position back to profitability over time by continuing to sell Calls against the 100 shares or whether to accept a loss now and move on to a new position. My reading and research in this regard over the next couple of days will assist me in this decision.

I have been reducing my Covered Calls stock exposure during the past month and replaced it with money market fund exposure. This has been fortuitous so far since the S&P 500 Index has declined in each of the past 3 weeks.

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

Early Assignment of Covered Call Position in Morgan Stanley

2026-10-30T10:58:44.981-04:00

I was notified via email early this morning by my broker (Schwab) that the one Morgan Stanley (ticker MS) November 6th, 2026 Call option was exercised early. Morgan Stanley's stock price increased from $181.43 when this position was established to $190.00 at yesterday's market close. The original $2.20 time value in the Call option when the position was established had declined to almost $0.00 at yesterday's market close. So, with 7 days remaining until the Nov. 6th, 2026 options expiration date, the owner of this Call exercised their option to buy the 100 shares at the $175.00 strike price in order to receive today's $1.15 per share ex-dividend and I achieved all of the original $2.20 per share time value as profit.

Although I will not receive the ex-dividend, I am satisfied with the +42.1% annualized-return-on-investment (aroi) result achieved since it slightly exceeds the +39.2% 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 November 6th options expiration date.

The post when this Morgan Stanley Covered Call position was originally established is here.

As detailed below, the return-on-investment result for this Morgan Stanley Covered Call position was +1.3% absolute return in 11 days (equivalent to a +42.1% annualized return-on-investment).

Morgan Stanley (MS) -- New Covered Call Position
The buy/write transaction was:
10/19/2026 Bought 100 Morgan Stanley shares @ $181.43
10/19/2026 Sold 1 Morgan Stanley 11/6/2026 $175.00 Call option @ $8.63
Note: the Implied Volatility of the Call option was 30.2 when this buy/write transaction was executed.
10/30/2026 Early Assignment of this one Morgan Stanley Call option, so the Call expired and 100 Morgan Stanley shares were sold at the $175.00 strike price.

The overall performance results (including commissions) for this Morgan Stanley Covered Call position are as follows:
Covered Call Cost Basis: $17,280.67
= ($181.43 - $8.63) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$862.33
= ($8.63 * 100 shares) - $.67 commission
(b) Dividend Income (If option exercised early on October 29th, the last business day prior to the October 30th, 2026 ex-div date): +$0.00

(c) Capital Appreciation (Morgan Stanley Call option assigned early on Oct. 30th): -$643.00
+($175.00 strike price - $181.43 stock purchase price) * 100 shares

Total Net Profit: +$219.33

= (+$862.33 option income + $0.00 dividend income - $643.00 capital appreciation)

Absolute Return-on-Investment: +1.3%

= +$219.33/$17,280.67

Annualized Return-on-Investment: +42.1%

= (+$219.33/$17,280.67) * (365/11 days)

Covered Call Position Established in NVIDIA Corporation

2026-10-27T15:12:41.036-04:00

A short-term (10 days) slightly in-the-money Covered Call position was established this afternoon in NVIDIA Corporation (ticker NVDA). My net buy/write limit order at $212.32 was executed when one hundred shares were purchased at $217.67 and one November 6th, 2026 Call option was simultaneously sold at the $217.50 strike price at $5.35 per share, which provides a $5.18 per share = [$5.35 Call option premium received - ($217.67 stock purchase price - $217.50 option strike price)] time value profit potential. The probability that NVIDIA's stock will close in-the-money on the 11/6/2026 options expiration date was 50.0% when this transaction was executed. Also, the next quarterly earnings report on November 17th is after the November 6th options expiration date.

As detailed below, a potential return-on-investment result is +2.4% absolute return-on-investment (equivalent to +88.9% annualized return-on-investment for the next 10 days) if NVIDIA's share price is in-the-money (i.e. above the $217.50 strike price) and therefore assigned on its November 6th, 2026 options expiration date.

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
10/27/2026 Bought 100 NVIDIA Corporation shares at $217.67.

10/27/2026 Sold 1 NVIDIA 11/6/2026 $217.50 Call option @ $5.35 per share. The Implied Volatility of this Call option was 35.8 when this position was established.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,232.67
= ($217.67 - $5.35) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$534.33
= ($5.35 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $217.50 strike price at expiration): -$17.00
+($217.50 strike price - $217.67 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $217.50 strike price at the options expiration date): +$517.33
= (+$534.33 option income + $0.00 dividend income - $17.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.4%
= +$517.33/$21,232.67
Potential Annualized Return-on-Investment: +88.9%
= (+$517.33/$21,232.67) * (365/10 days)

Covered Call Positions Closed in Akamai Technologies Inc. and AppLovin Corporation

2026-10-26T11:12:54.186-04:00

On Friday October 16th, the Covered Call position in Akamai Technologies Inc. (ticker AKAM) closed out-of-the-money at $87.81 which was well below its $105.00 strike price. Today I decided to close out this position by selling the 100 AKAM shares. So early in this morning's trading session, I closed out the position at a net loss of $554.67 when I sold the 100 Akamai Technologies shares at $96.00.

Last Friday on October 23rd, the Covered Call position in AppLovin Corporation (ticker APP) closed out-of-the-money at $260.25 which was below its $262.50 strike price. Today I closed out this position by selling the 100 AppLovin shares at a net profit of $459.33 when I sold the 100 AppLovin shares at $262.00.

The transactions history for both Covered Call positions and their associated return-on-investment results are detailed below.

1. Akamai Technologies Inc. (AKAM) -- Closed Out this Covered Call Position

10/16/2026 One Akamai $105.00 Call option closed out-of-the-money at $87.81, so the Call expired and 100 AKAM shares remained in the Covered Calls Advisor Portfolio.

10/26/2026 Closed out this Covered Call position by selling the 100 Akamai shares at $96.00 per share.

The overall performance result (including commissions) was as follows:
Covered Call Cost Basis: $10,154.67
= ($110.11 - $8.57) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$856.33
= ($8.57 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Akamai stock sold at $96.00): -$1,411.00
= ($96.00 stock selling price - $110.11 stock purchase price) * 100 shares

Total Net Loss: -$554.67
= (+$856.33 option income + $0.00 dividend income - $1,411.00 capital appreciation)

Absolute Return-on-Investment: -5.5%
= -$554.67/$10,154.67
Equivalent Annualized Return-on-Investment: -71.2%
= (-$554.67/$10,154.67) * (365/28 days)

2. AppLovin Corporation (APP) -- Closed Out this Covered Call Position

10/23/2026 One AppLovin $262.50 Call option closed out-of-the-money at $260.25, so the Call expired and 100 AppLovin shares remained in the Covered Calls Advisor Portfolio.

10/26/2026 Closed out this Covered Call position by selling the 100 AppLovin shares at $262.00 per share.

The overall performance result (including commissions) was as follows:
Covered Call Cost Basis: $25,740.67
= ($276.98 - $19.58) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,957.33
= ($19.58 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (AppLovin stock sold at $262.00 per share): -$1,498.00
= ($262.00 stock selling price - $276.98 stock purchase price) * 100 shares

Total Net Profit: +$459.33
= (+$1,957.33 option income + $0.00 dividend income - $1,498.00 capital appreciation)

Absolute Return-on-Investment: +1.8%
= +$459.33/$25,740.67
Equivalent Annualized Return-on-Investment: +38.3%
= (+$459.33/$25,740.67) * (365/17 days)

October 23rd, 2026 Options Expiration Results

2026-10-24T10:37:14.607-04:00

The Covered Calls Advisor Portfolio had two Covered Calls positions (Alphabet Inc. and AppLovin Corporation with October 23rd, 2026 options expiration dates. Both positions closed out-of-the-money so the Call options expired and the shares remain in the Covered Calls Advisor Portfolio. A summary for each of these positions is as follows:

1. Alphabet Inc. (GOOGL) -- This Covered Call position closed yesterday at $321.15 which was below its $340.00 strike price, so the one Call option expired and 100 Alphabet Inc. 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 Alphabet shares currently held or close out the position by selling these shares.

2. AppLovin Corporation (APP) -- This Covered Call position closed yesterday at $260.60 which was below its $262.50 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 AppLovin 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

Continuation of Covered Call Position in NVIDIA Corporation

2026-10-21T10:09:35.225-04:00

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

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

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

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

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

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

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

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

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

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

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

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

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

Established Covered Call in Morgan Stanley

2026-10-20T10:50:46.669-04:00

A Covered Call position was established in Morgan Stanley (ticker symbol MS) yesterday using my Dividend Capture Strategy (see here) when 100 shares were purchased at $181.43 and 1 November 6th, 2026 Call option was sold at $8.63 per share at the $175.00 strike price. The net debit limit order at $172.80 was executed, so the time value was $2.20 per share [$8.63 Call option premium - ($181.43 stock purchase price - $175.00 strike price)]. There is also an upcoming quarterly ex-dividend of $1.15 per share on October 30th (an increase of 15% from last year and a current annual dividend yield of 2.5%), so two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment because the ex-dividend is prior to the November 6th, 2026 options expiration date.

Morgan Stanley's Q3 2025 earnings report was last week so there will be no new earnings report prior to the options expiration date. The average target price of analysts following Morgan Stanley is $216 (+19.1% above the stock purchase price). An in-the-money Covered Calls position was established when the probability of the stock closing in-the-money (and therefore being assigned) on the 11/6/2026 options expiration date was 69.0%.

Most companies in the Financial Sector provide only modest growth prospects, but they often provide good annual dividend yields (such as the 2.5% annual dividend yield for this Morgan Stanley position). Consequently, the Covered Calls Advisor targets opportunities to use the Dividend Capture Strategy in all Financial Sector Covered Calls positions. This new November 6th, 2026 Morgan Stanley Covered Call position continues the Dividend Capture Strategy of often selling in-the-money monthly Covered Calls for one of six megacap U.S. banks (Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo) for each options expiration month:
(JPMorgan Chase quarterly for Jan, Apr, July, and Oct options expirations;
Citigroup, Morgan Stanley, and/or Wells Fargo for Feb, May, Aug, and Nov options expirations; and Bank of America and/or Goldman Sachs for Mar, Jun, Sep, and Dec options expirations).

The goal of these monthly Covered Call positions in these banks is to both provide an opportunity to either: (1) potentially capture the quarterly dividend payment and if the stock price remains above the strike price at options expiration, the maximum possible return-on-investment result on the options expiration date would be achieved; or (2) have the stock assigned early on the last trading day prior to the ex-dividend date in which case the Covered Calls Advisor is usually very pleased since the Dividend Capture Strategy criteria are designed such that most often the annualized return-on-investment for early assignment is somewhat greater than what would be achieved if the stock was instead assigned on its options expiration date (which is the case for this Morgan Stanley position). So far, applying this approach has provided attractive annualized return results -- significantly better than would be achieved if Covered Calls positions for these bank stocks were instead held in the Covered Calls Advisor Portfolio in the other two non-dividend paying months each quarter.

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

+1.3% absolute return (equivalent to +42.1% annualized return-on-investment for the next 11 days) if the stock is assigned early (on the last business day prior to the October 30th, 2026 ex-dividend date); OR

+1.9% absolute return (equivalent to +39.2% annualized return-on-investment over the next 18 days) if the stock is assigned on the November 6th, 2026 options expiration date.

Morgan Stanley (MS) -- New Covered Call Position
The buy/write transaction was:
10/19/2026 Bought 100 Morgan Stanley shares @ $181.43
10/19/2026 Sold 1 Morgan Stanley 11/6/2026 $175.00 Call option @ $8.63
Note: the Implied Volatility of the Call option was 30.2 when this buy/write transaction was executed.
10/30/2026 Upcoming quarterly ex-dividend of $1.15 per share

Two possible overall performance results (including commissions) for this Morgan Stanley Covered Call position are as follows:
Covered Call Cost Basis: $17,280.67
= ($181.43 - $8.63) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$862.33
= ($8.63 * 100 shares) - $.67 commission
(b) Dividend Income (If option exercised early on October 29th, the last business day prior to the October 30th, 2026 ex-div date): +$0.00; or
(b) Dividend Income (If Morgan Stanley stock assigned at the November 6th, 2026 expiration): +$115.00

= ($1.15 dividend per share x 100 shares)

(c) Capital Appreciation (If Morgan Stanley Call option is assigned early on Oct. 30th): -$643.00
+($175.00 strike price - $181.43 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $175.00 strike price at the 11/6/2026 options expiration): -$643.00
+($175.00 - $181.43) * 100 shares

1. Total Net Profit [If option exercised early on the last business day prior to the October 30th ex-dividend date)]: +$219.33

= (+$862.33 option income + $0.00 dividend income - $643.00 capital appreciation); or

2. Total Net Profit (If Morgan Stanley shares assigned at $175.00 strike price at the November 6th, 2026 expiration): +$334.33

= (+$862.33 + $115.00 - $643.00)

1. Potential Absolute Return-on-Investment (If option exercised early on Oct. 30th): +1.3%

= +$219.33/$17,280.67

Potential Annualized Return-on-Investment: +42.1%

= (+$219.33/$17,280.67) * (365/11 days); or

2. Potential Absolute Return-on-Investment (If Morgan Stanley shares assigned at $175.00 at the Nov. 6th, 2026 options expiration date): +1.9%

= +$334.33/$17,280.67

Potential Annualized Return-on-Investment (If Morgan Stanley shares assigned at the November 6th options expiration date): +39.2%

= (+$334.33/$17,280.67) * (365/18 days)

Either outcome would provide an attractive return-on-investment result for this Morgan Stanley investment. These returns 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 $171.65 ($181.43 - $8.63 - $1.15) provides 5.4% downside protection below the 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 Morgan Stanley position, all nine criteria were met.

October 16th, 2026 Options Expiration Results

2026-10-17T08:14:09.533-04:00

The Covered Calls Advisor Portfolio had three Covered Call positions with October 16th, 2026 options expirations. One position in Uber Technologies Inc. (UBER) closed with its stock price in-the-money. So, Uber's Calls expired with no remaining time value and the Covered Calls were closed out by the 300 shares being sold at its $66.00 strike price. Two positions in Akamai Technologies Inc. (AKAM) and NVIDIA Corporation (NVDA) closed yesterday with their stock prices out-of-the-money, so those Call options expired and 100 shares in each company now remain in the Covered Calls Advisor Portfolio. The return-on-investment details for each position is as follows:

1. Uber Technologies Inc. (UBER) -- +2.1% absolute return-on-investment (equivalent to +43.1% annualized return-on-investment) for the 18 days of this investment. This Uber Covered Calls position had a $66.00 strike price and it closed at $70.35 yesterday. The original blog post showing the details of this position is here.

2. Akamai Technologies Inc. (AKAM) -- This Covered Call position closed yesterday at $87.81 which was below its $105.00 strike price, so the Call option expired and 100 Akamai shares remain in the Covered Calls Advisor Portfolio. Early next week I will either continue this Covered Call position by selling another Call against the 100 shares owned or sell the shares to close out the position. The original blog post detailing this position is here.

3. Nvidia Corporation (NVDA) -- This Covered Call position closed yesterday at $214.13 which was well below its $230.00 strike price, so the Call option expired and 100 NVIDIA shares remain in the Covered Calls Advisor Portfolio. Early next week I will either continue this Covered Call position by selling another Call against the 100 shares owned or sell the shares to close out the position. The original blog post detailing this position is here.

Please 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.

2026-10-14T14:48:23.808-04:00

A new short-term Covered Call net debit buy/write limit order was transacted in today's trading session in Alphabet Inc. (ticker GOOGL) for the October 23rd, 2026 expiration and at the $340.00 strike price. The order was placed at a $335.82 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $4.18 per share [$11.71 Call option premium - ($347.53 stock purchase price - $340.00 strike price)]. The probability that this position will be in-the-money and therefore assigned on its options expiration date was 65.7% when this order was transacted.

As detailed below, the potential return-on-investment result is +1.2% absolute return-on-investment in 9 days (equivalent to a +50.4% annualized return-on-investment).

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

The simultaneous buy/write transaction was as follows:
10/14/2026 Bought 100 shares of Alphabet Inc. stock @ $347.53 per share.
10/14/2026 Sold 1 Alphabet Inc. October 23rd $340.00 Call option @ $11.71 per share.
Note: The Implied Volatility of the Call option was approximately 33.0 when this transaction was executed which, as I prefer, is well above the current 17.2 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: $33,582.67
= ($347.53 - $11.71) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,170.33
= ($11.71 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Alphabet stock is above $340.00 strike price at the 10/23/2026 options expiration date): -$753.00
= ($340.00 strike price - $347.53 stock purchase price) * 100 shares

Total Net Profit Potential: +$417.33
= (+$1,170.33 option income + $0.00 dividend income - $753.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.2%
= +$417.33/$33,582.67
Potential Equivalent Annualized Return-on-Investment: +50.4%
= (+$417.33/$33,582.67) * (365/9 days)

Closed Out Covered Calls Position in Bristol-Myers Squibb Company

2026-10-12T09:58:16.656-04:00

Last Friday, the Covered Calls position in Bristol-Myers Squibb Company (ticker BMY) closed out-of-the-money at $59.12 which was below its $60.00 strike price. Early in this morning's trading session, Bristol-Myers' stock price advanced above the $60.00 strike price and I decided to close out the position by selling the 200 BMY shares at $60.44 per share.

As detailed below, the return-on-investment results are: +2.8% absolute return (equivalent to +57.5% annualized return-on-investment) for the 18 days of this investment.

Bristol-Myers Squibb Company (BMY) -- Covered Calls Position Closed Out

The buy/write net limit order transaction was as follows:
9/24/2026 Bought 200 Bristol-Myers Squibb Company shares at $60.95.

9/24/2026 Sold 2 BMY 10/9/2026 $60.00 Call options @ $1.57 per share. The Implied Volatility of these Calls was 21.6 when this position was established, which is above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) which was 15.7.

10/2/2026 Quarterly ex-dividend of $.63 per share.
10/9/20/2026 Two Bristol-Myers Call options closed out-of-the-money at $59.12, so the Call options expired and 200 BMY shares remained in the Covered Calls Advisor Portfolio.
10/12/2026 Closed out this Bristol-Myers Covered Calls position by selling the 200 shares at $60.44 per share.

The overall performance results (including commissions) for this Bristol Myers Covered Calls position are as follows:
Covered Calls Cost Basis: $11,877.34
= ($60.95 - $1.57) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$312.66
= ($1.57 * 200 shares) - $1.34 commission
(b) Dividend Income: +$126.00 = ($.63 dividend per share x 200 shares)

(c) Capital Appreciation (BMY shares sold at $60.44 per share on the Monday following the 10/9/2026 options expiration): -$102.00

+($60.44 stock selling price - $60.95 stock purchase price) * 200 shares

Total Net Profit: +$336.66

= (+$312.66 options income + $126.00 dividend income - $102.00 capital appreciation)

Absolute Return-on-Investment: +2.8%

= +$336.66/$11,877.34

Equivalent Annualized Return-on-Investment: +57.5%

= (+$336.66/$11,877.34) * (365/18 days)

October 9th, 2026 Options Expiration Results

2026-10-10T08:52:42.251-04:00

The Covered Calls Advisor Portfolio had two Covered Call positions with October 9th, 2026 options expirations. One position in NVIDIA Corporation closed with its stock price in-the-money. So, the Call expired with no remaining time value and the Covered Call was closed out by NVIDIA stock being sold at its strike price. A second position in Bristol-Myers Squibb Company with a $60.00 strike price closed yesterday out-of-the-money at $59.12, so the Call option expired and 100 shares now remain in the Covered Calls Advisor Portfolio. The details for each position is as follows:

1. Nvidia Corporation (NVDA) -- +1.4% absolute return-on-investment (equivalent to +34.6% annualized return-on-investment) for the 15 days of this investment. This NVIDIA Covered Call position had a $215.00 strike price and it closed at $229.28 yesterday. The original blog post showing the details of this position is here.

2. Bristol-Myers Squibb Company (BMY) -- This Covered Calls position closed yesterday at $59.12 which was below its $60.00 strike price, so the Call options expired and 200 Bristol-Myers shares remain in the Covered Calls Advisor Portfolio. Early next week I will either continue this Covered Calls position by selling two Calls against the 200 shares owned or sell the shares to close out the position. The original blog post detailing 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

Covered Call Position Established in AppLovin Corporation

2026-10-09T14:32:35.266-04:00

This afternoon a new two-week Covered Call net debit buy/write limit order was established in AppLovin Corporation (ticker APP) for the October 23rd, 2026 expiration and at the $262.50 strike price. Today's limit order was placed at a $257.40, so the extrinsic value (which represents the maximum profit potential for this position) was $5.10 per share [$19.58 Call option premium - ($276.98 stock purchase price - $262.50 strike price)]. The Implied Volatility of the Call option was 51.8% and the probability that this position will be in-the-money and therefore assigned on its options expiration date was 68.7% when this order was transacted.

AppLovin is a $94 billion market cap 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 +2.0% absolute return-on-investment in 14 days (equivalent to a +51.6% annualized return-on-investment).

AppLovin Corporation (APP) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
10/9/2026 Bought 100 shares of AppLovin stock @ $276.98 per share.
10/9/2026 Sold 1 AppLovin October 23rd $262.50 Call option @ $19.58 per share.

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $25,740.67
= ($276.98 - $19.58) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,957.33
= ($19.58 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If AppLovin stock is above the $262.50 strike price at the 10/23/2026 options expiration date): -$1,448.00
= ($262.50 strike price - $276.98 stock purchase price) * 100 shares

Total Net Profit Potential: +$509.33
= (+$1,957.33 option income + $0.00 dividend income - $1,448.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.0%
= +$509.33/$25,740.67
Potential Equivalent Annualized Return-on-Investment: +51.6%
= (+$509.33/$25,740.67) * (365/14 days)

Covered Call Position Established in NVIDIA Corporation

2026-10-07T13:54:34.430-04:00

A short-term (9 days) in-the-money Covered Call position was established this afternoon in NVIDIA Corporation (ticker NVDA). My net buy/write limit order at $227.98 was executed when one hundred shares were purchased at $236.93 and one October 16th, 2026 Call option was simultaneously sold at the $230.00 strike price at $8.95 per share, which provides a $2.02 per share = [$8.95 Call option premium received - ($236.93 stock purchase price - $230.00 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 10/16/2026 options expiration date was 72.6% when this transaction was executed.

As detailed below, a potential return-on-investment result is +0.9% absolute return-on-investment (equivalent to +35.8% annualized return-on-investment for the next 9 days) if NVIDIA's share price is in-the-money (i.e. above the $230.00 strike price) and therefore assigned on its October 16th, 2026 options expiration date.

NVIDIA Corporation (NVDA) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
10/7/2026 Bought 100 NVIDIA Corporation shares at $236.93.

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

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $22,798.67
= ($236.93 - $8.95) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$894.33
= ($8.95 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned at the $230.00 strike price at expiration): -$693.00
+($230.00 strike price - $236.93 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 NVIDIA shares in-the-money and therefore assigned at the $230.00 strike price at the options expiration date): +$201.33
= (+$894.33 option income + $0.00 dividend income - $693.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$201.33/$22,798.67
Potential Annualized Return-on-Investment: +35.8%
= (+$201.33/$22,798.67) * (365/9 days)

Early Assignment of Covered Calls Position in Gap Inc.

2026-10-07T13:26:09.911-04:00

This morning my broker (Schwab) emailed me that six Gap Inc. (ticker GAP) October 9th, 2026 Call options were exercised early. Gap's stock price increased from $21.23 when this position was established to $23.79 at yesterday's market close. The original $.30 time value in the Call options when the position was established had declined to $0.06 at yesterday's market close. So, with 2 days remaining until the 10/9/2026 options expiration date, the owner of these Calls exercised their option to buy the 600 shares at the $20.50 strike price in order to receive today's $.175 per share ex-dividend.

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

As detailed below, the return-on-investment result for this Gap Inc. Covered Calls position was +1.5% absolute return in 13 days (equivalent to a +40.8% annualized return-on-investment).

Gap Inc. (GAP) -- Covered Calls Position Closed by Early Assignment
The buy/write transaction was:

9/24/2025 Bought 600 Gap Inc. shares @ $21.23
9/24/2025 Sold 6 Gap 10/9/2026 $20.50 Call options @ $1.03
Note: the Implied Volatility of the Call options was 35.4 when this buy/write transaction was executed.
10/7/2026 Early Assignment of these six Gap Call options, so the Calls expired and 600 Gap shares were sold at the $20.50 strike price.

The overall performance results (including commissions) for this Gap Covered Calls position are as follows:
Covered Calls Net Investment: $12,124.02

= ($21.23 - $1.03) * 600 shares + $4.02 commission

Net Profit Components:
(a) Options Income: +$613.98
= ($1.03 * 600 shares) - $4.02 commission

(b) Dividend Income (Six Call options exercised early on October 6th, the last business day prior to the Oct. 7th, 2026 ex-div date): +$0.00
(c) Capital Appreciation (Gap Call options assigned early): -$438.00
+($20.50 strike price - $21.23 stock purchase price) * 600 shares

Total Net Profit [Six Call options exercised early]: +$175.98

= (+$613.98 options income + $0.00 dividend income - $438.00 capital appreciation)

Absolute Return-on-Investment: +1.5%

= +$175.98/$12,124.02

Annualized Return-on-Investment: +40.8%

= (+$175.98/$12,124.02) * (365/13 days)

October 2nd, 2026 Options Expiration Results

2026-10-03T07:58:18.097-04:00

The Covered Calls Advisor Portfolio had three Covered Calls positions with October 2nd, 2026 options expirations and all three positions (Alphabet Inc., Hewlett Packard Enterprise Company, 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 October 2nd options expiration date. The return-on-investment details (in alphabetical order) for each position is as follows:

1. Alphabet Inc. (GOOGL) -- +0.9% absolute return-on-investment (equivalent to +38.1% annualized return-on-investment) for the 9 days of this investment. This Alphabet Covered Call position had a $330.00 strike price and it closed at $343.50 yesterday. The original blog post showing the details of this position is here.

2. Hewlett Packard Enterprise Company (HPE) -- +2.0% absolute return-on-investment (equivalent to +74.1% annualized return-on-investment) for the 10 days of this investment. This Hewlett Packard Enterprise Covered Calls position had a $58.00 strike price and it closed at $69.33 yesterday. The original blog post showing the details of this position is here.

3. Nvidia Corporation (NVDA) -- +3.3% absolute return-on-investment (equivalent to +81.1% annualized return-on-investment) for the 15 days of this investment. This NVIDIA Covered Call position had a $220.00 strike price and it closed at $233.95 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

Covered Call Position Established in Akamai Technologies Inc.

2026-09-28T11:10:10.812-04:00

This morning at 10:53 am, my in-the-money Covered Call net-debit buy/write limit order was transacted in Akamai Technologies Inc. (ticker AKAM) for the October 16th, 2026 expiration and at the $105.00 strike price. Since Akamai's announcement last week that a new $11.6 billion 7-year commitment from Anthropic to support its CPU workload that will use Akamai Cloud's infrastructure, several Wall Street firms have raised their price targets citing a significantly positive outlook for Akamai's future revenue and profit growth estimates. The average target price of the 20 analysts following Akamai is now $159.71 (+45% above today's stock purchase price).

This morning's net-debit limit order was placed at a $101.54, so the extrinsic value (which represents the maximum profit potential for this position) was $3.46 per share [$8.57 Call option premium - ($110.11 stock purchase price - $105.00 strike price)]. The Implied Volatility of the Call option was high at 58.9% and the probability that this position will be in-the-money and therefore assigned on its October 16th options expiration date was 61.9% when this order was transacted.

Akamai is a $16 Billion market cap company headed by CEO and Co-Founder Tom Leighton who was a Professor of Applied Math at MIT in 1998 when the company was founded and he has been CEO now for 13 years. Akamai's business model is increasingly a cybersecurity and cloud-infrastructure company, with its traditional content-delivery business now becoming a smaller part of the mix. In 2025, Security generated $2.24B, or 53% of revenue, Delivery $1.26B, or 30%, and Cloud Computing $708M, or 17%; security was also the fastest-growing major business at 10%, versus a 5% decline in Delivery and 12% growth in Cloud Computing. The shift is continuing in 2026: in Q2, Security represented 55% of revenue and grew 10%, while Delivery/other cloud applications represented 36% and declined 6%, and Cloud Infrastructure Services represented 9% but grew 39%.

As detailed below, the potential return-on-investment result is +3.4% absolute return-on-investment in 18 days (equivalent to a +69.0% annualized return-on-investment).

Akamai Technologies Inc. (AKAM) -- New Covered Call Position

The simultaneous buy/write transaction was as follows:
9/28/2026 Bought 100 shares of Akamai Technologies stock @ $110.11 per share.
9/28/2026 Sold 1 Akamai October 16th, 2026 $105.00 Call option @ $8.57 per share.

A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $10,154.67
= ($110.11 - $8.57) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$856.33
= ($8.57 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Akamai stock is above the $105.00 strike price at the 10/16/2026 options expiration date): -$511.00
= ($105.00 strike price - $110.11 stock purchase price) * 100 shares

Total Net Profit Potential: +$345.33
= (+$856.33 option income + $0.00 dividend income - $511.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.4%
= +$345.33/$10,154.67
Potential Equivalent Annualized Return-on-Investment: +69.0%
= (+$345.33/$10,154.67) * (365/18 days)

Covered Calls Position Established in Uber Technologies Inc.

2026-09-28T10:19:25.471-04:00

During the first half hour in this morning's trading session, my in-the-money Covered Calls net-debit limit order was transacted and 300 shares of Uber Technologies Inc. (ticker symbol UBER) stock were purchased at $67.91 and 3 October 16th, 2026 $66.00 Call options were sold at $3.29 per share -- a net debit of $64.62 ($67.91 - $3.29) 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 $1.38 per share [$3.29 Call options premium - ($67.91 stock purchase price - $66.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 63.3% when this order was transacted.

As preferred, the next quarterly earnings report on November 3rd, 2026 is after the October 16th options expiration date. Also as shown below, Uber appeared on my Quality+Growth stock screener by passing all criteria therein (including that the average Wall Street analysts' target price which is +50.5% above today's stock purchase price):

As detailed below, a potential outcome for this Uber Technologies investment is +2.1% absolute return-on-investment for the next 18 days (equivalent to +43.1% annualized-return-on-investment) if the stock closes above the $66.00 strike price on the October 16th, 2026 options expiration date.

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

The net-debit buy/write limit order was executed as follows:
9/28/2026 Bought 300 shares of Uber Technologies Inc. stock @ $67.91 per share.
9/28/2026 Sold 3 Uber October 16th, 2026 $66.00 Call options @ $3.29 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 36.1 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 10/16/2026 options expiration date is as follows:
Covered Calls Net Investment: $19,388.01
= ($67.91 - $3.29) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$984.99
= ($3.29 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $66.00 strike price at the 10/16/2026 options expiration date): -$573.00
= ($66.00 - $67.91) * 300 shares

Potential Total Net Profit (If assigned at expiration): +$411.99
= (+$984.99 options income + $0.00 dividend income - $573.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.1%
= +$411.99/$19,388.01
Potential Equivalent Annualized-Return-on-Investment: +43.1%
= (+$411.99/$19,388.01) * (365/18 days)

September 25th, 2026 Options Expiration Results

2026-09-26T05:33:30.003-04:00

The Covered Calls Advisor Portfolio had two Covered Call positions with September 25th, 2026 options expirations and both positions (Newmont Corporation and Uber Technologies Inc.) were in-the-money and therefore 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. Newmont Corporation (NEM) -- +1.5% absolute return-on-investment (equivalent to +56.3% annualized return-on-investment) for the 10 days of this investment. This Newmont Covered Calls position had a $118.00 strike price and it closed in-the-money at $121.43 yesterday. The original blog post showing the details of this position is here.

2. Uber Technologies Inc. (UBER) -- +1.8% absolute return-on-investment (equivalent to +40.8% annualized return-on-investment) for the 16 days of this investment. This Uber Covered Calls position had a $69.00 strike price and it closed in-the-money at $69.62 yesterday. Even though the stock price declined from my original purchase price from $71.23 to $69.62 yesterday (a -2.3% price decline), establishing an in-the-money strike price gave me sufficient downside protection to still achieve the maximum potential annualized return-on-investment for this Covered Calls position. 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

Established Covered Calls Position in Bristol-Myers Squibb Company

2026-09-24T16:39:25.408-04:00

A new Covered Calls position of 15 days duration was established today in Bristol-Myers Squibb Company (ticker BMY). My buy/write net debit limit order at $59.38 was executed and the time value was $.62 per share [$1.57 Call options premium - ($60.95 stock purchase price - $60.00 strike price)]. An in-the-money strike price was established with the probability that this Bristol Myers stock will close in-the-money (i.e. above the $60.00 strike price) on the 9/11/2026 options expiration date was 63.1% when this transaction was executed. As preferred, their next quarterly earnings report on October 29th is well after the October 9th options expiration date.

This Bristol Myers Covered Calls position was established to take advantage of my Dividend Capture Strategy (see details here) since there is an upcoming quarterly ex-dividend of $.63 per share (4.1% dividend yield) on October 2nd, 2026. So, two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment on the last business day prior to the ex-dividend date and on the October 9th options expiration date if instead BMY's stock price is in-the-money on its October 9th, 2026 options expiration date.

Bristol Myers Squibb is a global biopharmaceutical company that discovers, develops, manufactures, and sells prescription medicines, with a focus on oncology, immunology, cardiovascular disease, and neuroscience. Its largest products include Eliquis for preventing blood clots and stroke, Opdivo for cancer, Pomalyst/Imnovid and Abecma for blood cancers, and Camzyos for certain heart conditions. The company generates most of its revenue from a portfolio of established drugs while investing heavily in research and development to replace revenue as patents expire and to expand newer products. Bristol Myers Squibb's business model therefore combines high-margin pharmaceutical sales with substantial R&D spending, acquisitions/licensing, and ongoing development of its pipeline to support longer-term growth.

As detailed below, a potential return-on-investment result if Bristol Myers share price is: (1) +1.0% absolute return-on-investment (equivalent to +47.1% annualized return-on-investment for the next 8 days) if the stock is assigned early on October 1st (the last day before the ex-dividend date); OR (2) +2.1% absolute return-on-investment (equivalent to +50.9% annualized return-on-investment for the next 15 days) if the stock is instead in-the-money (i.e. above the $60.00 strike price) and therefore assigned on its October 9th, 2026 options expiration date.

Bristol-Myers Squibb Company (BMY) -- New Covered Calls Position

The buy/write net limit order transaction was as follows:
9/24/2026 Bought 200 Bristol-Myers Squibb Company shares at $60.95.

9/24/2026 Sold 2 BMY 9/11/2026 $60.00 Call options @ $1.57 per share. The Implied Volatility of these Calls was 21.6 when this position was established, which is above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) which was 15.7.

Two possible overall performance results (including commissions) for this Bristol Myers Covered Calls position are as follows:
Covered Calls Cost Basis: $11,877.34
= ($60.95 - $1.57) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$312.66
= ($1.57 * 200 shares) - $1.34 commission
(b) Dividend Income (If option exercised early on October 1st, the last business day prior to the October 2nd ex-dividend date): +$0.00; or
(b) Dividend Income (If Bristol Myers shares assigned at the October 9th, 2026 options expiration): +$126.00 = ($.63 dividend per share x 200 shares)

+($60.00 strike price - $60.95 stock purchase price) * 200 shares; or
(c) Capital Appreciation (If shares assigned at $60.00 strike price at the 10/9/2026 options expiration): -$190.00
+($60.00 - $60.95) * 200 shares

1. Total Net Profit [If option exercised early on the last business day prior to the Oct. 2nd ex-dividend date)]: +$122.66

= (+$312.66 options income + $0.00 dividend income - $190.00 capital appreciation); or

2. Total Net Profit (If Bristol Myers shares assigned at $60.00 strike price at the Oct. 9th, 2026 expiration): +$248.66

= (+$312.66 options income + $126.00 dividend income - $190.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If option exercised early on 10/2/2026): +1.0%

= +$122.66/$11,877.34

Potential Annualized Return-on-Investment: +47.1%

= (+$122.66/$11,877.34) * (365/8 days); or

2. Potential Absolute Return-on-Investment (If BMY shares assigned at $60.00 at the October 9th, 2026 options expiration date): +2.1%

= +$248.66/$11,877.34

Potential Annualized Return-on-Investment (If Bristol Myers shares assigned at the Oct. 9th, 2026 options expiration date): +50.9%

= (+$248.66/$11,877.34) * (365/15 days)

Established Covered Call in NVIDIA Corporation

2026-09-24T14:08:32.212-04:00

A Covered Call position of 15 days duration was established today in NVIDIA Corporation (ticker NVDA). My buy/write net debit limit order at $211.98 was executed and the time value (aka extrinsic value) was $3.02 per share [$9.85 Call option premium - ($221.83 stock purchase price - $215.00 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 $215.00 strike price) on the 10/9/2026 options expiration date was 68.3% when this transaction was executed. NVIDIA's next earnings report is on 11/17/2026 which, as preferred, is after the 10/9/2026 options expiration date.

As detailed below, a potential return-on-investment result if NVIDIA's share price is in-the-money (i.e. above the $215.00 strike price) and therefore assigned on its October 9th, 2026 options expiration date is +1.4% absolute return-on-investment (equivalent to +34.6% annualized return-on-investment for the next 15 days).

NVIDIA Corporation (NVDA) -- New Covered Call Position

The buy/write net limit order transaction was as follows:
9/24/2026 Bought 100 NVIDIA Corporation shares at $221.83.

9/24/2026 Sold 1 NVIDIA 10/9/2026 $215.00 Call option @ $9.85 per share. The Implied Volatility of this Call was 31.6 when this position was established, which is above (as preferred) the current value of the S&P 500 Volatility Index (i.e. VIX) of 15.9.

A possible overall performance result (including commissions) for this NVIDIA Corporation Covered Call position is as follows:
Covered Call Net Investment: $21,198.67
= ($221.83 - $9.85) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$984.33
= ($9.85 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 NVIDIA shares assigned (i.e. above the $215.00 strike price) on the 10/9/2026 options expiration date): -$683.00
+($215.00 strike price - $221.83 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 on the 10/9/2026 options expiration date): +$301.33

= (+$984.33 option income + $0.00 dividend income - $683.00 capital appreciation)

Potential Absolute Return-on-Investment (If 100 NVIDIA shares assigned (i.e. sold) at the $215.00 strike price on the 10/9/2026 options expiration date): +1.4%

= (+$301.33/$21,198.67)

Potential Annualized Return-on-Investment (If 100 NVIDIA shares assigned at the $215.00 strike price on the 10/9/2026 options expiration date): +34.6%
= (+$301.33/$21,198.67) * (365/15 days)

Established Covered Calls in Gap Inc.

2026-09-24T12:42:55.491-04:00

This morning a short-term Covered Calls position was established in Gap Inc. (ticker symbol GAP) when 600 shares were purchased at $21.23 and 6 October 9th, 2026 Call options were sold at $1.03 per share at the $20.50 strike price. The buy/write net debit limit order at $20.20 was executed, so the potential time value profit was $.30 per share [$1.03 Call options premium - ($21.23 stock purchase price - $20.50 strike price)].

This Gap Covered Calls position was established to take advantage of my Dividend Capture Strategy (see details here) since there is an upcoming quarterly ex-dividend of $.175 per share (3.3% dividend yield) on October 7th, 2026. So, two potential return-on-investment results for this position, as detailed below, include the possibility of early assignment since the ex-dividend is only 2 days prior to the October 9th, 2026 options expiration date. An in-the-money Covered Calls position was established with the probability of the stock closing in-the-money (and therefore being assigned) on the 10/9/2026 options expiration date was 67.3%. Also, there is no quarterly earnings report prior to the options expiration date.

Gap, Inc. operates as an apparel retail company that offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Management expects modest net sales growth of 1% to 2% year-over-year, alongside an improved full-year adjusted operating margin of approximately 7.4% to 7.6%. Gap trades at a trailing P/E ratio of roughly 6.4x, which is notably lower than its historical 10-year median and below the broader cyclical retail industry median.

Gap did not appear in any of my stock screeners, but CFRA, Morningstar, and LSEG all have a Buy rating on the company. The 22 Wall Street analysts that cover the company rate it as a 'Buy' on average with a mean target price of $26.42 (+24.4% above today's purchase price).

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

+1.5% absolute return (equivalent to +40.8% annualized return-on-investment for the next 13 days) if the Calls are assigned early (on the last business day prior to the October 7th, 2026 ex-dividend date); OR

+2.3% absolute return (equivalent to +56.4% annualized return-on-investment over the next 15 days) if the stock is assigned on the October 9th, 2026 options expiration date.

Gap Inc. (GAP) -- New Covered Calls Position
The buy/write transaction was:

9/24/2025 Bought 600 Gap Inc. shares @ $21.23
9/24/2025 Sold 6 Gap 10/9/2026 $20.50 Call options @ $1.03
Note: the Implied Volatility of the Call options was 35.4 when this buy/write transaction was executed.
10/7/2026 Upcoming quarterly ex-dividend of $.175 per share

Two possible overall performance results (including commissions) for this Gap Inc. Covered Calls position are as follows:
Covered Calls Cost Basis: $12,124.02
= ($21.23 - $1.03) * 600 shares + $4.02 commission

Net Profit Components:
(a) Options Income: +$613.98
= ($1.03 * 600 shares) - $4.02 commission
(b) Dividend Income (If option exercised early on Oct. 6th, the last business day prior to the October 7th ex-dividend date): +$0.00; or
(b) Dividend Income (If Gap shares assigned at the October 9th, 2026 options expiration): +$105.00 = ($.175 dividend per share x 600 shares)

+($20.50 strike price - $21.23 stock purchase price) * 600 shares; or
(c) Capital Appreciation (If shares assigned at $20.50 strike price at the 10/9/2026 options expiration): -$438.00
+($20.50 - $21.23) * 600 shares

1. Total Net Profit [If option exercised early on the last business day prior to the Oct. 7th ex-dividend date)]: +$175.98

= (+$613.98 options income + $0.00 dividend income - $438.00 capital appreciation); or

2. Total Net Profit (If Gap shares assigned at $20.50 strike price at the Oct. 9th, 2026 expiration): +$280.98

= (+$613.98 options income + $105.00 dividend income - $438.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If option exercised early on 10/7/2026): +1.5%

= +$175.98/$12,124.02

Potential Annualized Return-on-Investment: +40.8%

= (+$175.98/$12,124.02) * (365/13 days); or

2. Potential Absolute Return-on-Investment (If Gap Inc. shares assigned at $20.50 at the January 9th, 2026 options expiration date): +2.3%

= +$280.98/$12,124.02

Potential Annualized Return-on-Investment (If Gap shares assigned at the Oct. 9th, 2026 options expiration date): +56.4%

= (+$280.98/$12,124.02) * (365/15 days)

Covered Call Position Established in Alphabet Inc.

2026-09-23T11:42:50.600-04:00

A new short-term Covered Call net debit buy/write limit order was transacted in today's late morning trading session in Alphabet Inc. (ticker GOOGL) for the October 2nd, 2026 expiration and at the $330.00 strike price. The order was placed at a $326.92 limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $3.08 per share [$13.75 Call option premium - ($340.67 stock purchase price - $330.00 strike price)]. The probability that this position will be in-the-money and therefore assigned on its options expiration date was 72.8% when this order was transacted.

As detailed below, the potential return-on-investment result is +0.9% absolute return-on-investment in 9 days (equivalent to a +38.1% annualized return-on-investment).

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

The simultaneous buy/write transaction was as follows:
9/23/2026 Bought 100 shares of Alphabet Inc. stock @ $340.67 per share.
9/23/2026 Sold 1 Alphabet Inc. October 2nd $330.00 Call option @ $13.75 per share.
Note: The Implied Volatility of the Call option was approximately 32.7 when this transaction was executed which, as I prefer, is well above the current 14.7 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: $32,692.67
= ($340.67 - $13.75) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$1,374.33
= ($13.75 * 100 shares) - $.67
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Alphabet stock is above $330.00 strike price at the 10/2/2026 options expiration date): -$1,067.00
= ($330.00 strike price - $340.67 stock purchase price) * 100 shares

Total Net Profit Potential: +$307.33
= (+$1,374.33 option income + $0.00 dividend income - $1,067.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.9%
= +$307.33/$32,692.67
Potential Equivalent Annualized Return-on-Investment: +38.1%
= (+$307.33/$32,692.67) * (365/9 days)

Established Covered Calls Position in Hewlett Packard Enterprise Company

2026-09-22T14:03:43.205-04:00

In this afternoon's trading session, a short-term Covered Calls position at my net debit limit order price of $56.84 executed in Hewlett Packard Enterprise Company (ticker symbol HPE) when 400 shares were purchased at $61.17 and 4 October 2nd, 2026 Call options were sold at $4.33 per share at the $58.00 strike price. The potential time value profit was $1.16 per share [$4.33 Call options premium - ($61.17 stock purchase price - $58.00 strike price)]. An in-the-money Covered Calls position was established with the probability of the stock closing in-the-money (and therefore being assigned) on the 10/2/2026 options expiration date was 67.9%.

HPE is an enterprise technology company centered on servers/compute, storage, networking, and hybrid cloud/AI infrastructure, sold mainly to large businesses and public-sector clients. It's shifting revenue toward recurring software and as-a-service offerings (GreenLake) for more predictable income, though hardware and integrated solutions still make up a large share of sales. A key strategic move was the 2025 acquisition of Juniper Networks, merged with Aruba to form HPE Networking, strengthening its position in AI-driven enterprise networking. HPE is also leaning into the AI infrastructure boom, with its hybrid cloud and edge computing position mattering as businesses mix on-premises and public cloud. Competitively, it faces pressure from major cloud providers and hardware rivals, and its performance is tightly linked to execution, IT spending cycles, and successful integration of acquisitions.

As preferred, there is no quarterly earnings report prior to the options expiration date. Hewlett Packard Enterprise appeared in my "Next-Year Growth>P/E and 5-Year PEG <1.4" stock screener by passing all criteria as shown below:

As detailed below, a potential return-on-investment result is: +2.0% absolute return (equivalent to +74.1% annualized return-on-investment for the next 10 days) if the stock is assigned on the October 2nd, 2026 options expiration date.

Hewlett Packard Enterprise Company (HPE) -- New Covered Calls Position
The buy/write transaction was:
9/22/2026 Bought 400 Hewlett Packard Enterprise shares @ $61.17.
9/22/2026 Sold 4 HPE 10/2/2026 $58.00 Call options @ $4.33.
Note: the Implied Volatility of the Call options was high at 64.2% when this buy/write transaction was executed.

A possible overall performance result (including commissions) for this Hewlett Packard Enterprise Company Covered Calls position is as follows:
Covered Calls Cost Basis: $22,738.68
= ($61.17 - $4.33) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$1,729.32
= ($4.33 * 400 shares) - $2.68 commission
(b) Dividend Income: +$0.00

+($58.00 - $61.17) * 400 shares

Total Net Profit (If Hewlett Packard Enterprise shares assigned at $58.00 strike price at the Oct. 2nd, 2026 expiration): +$461.32

= (+$1,729.32 options income + $0.00 dividend income - $1,268.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.0%

= +$461.32/$22,738.68

Potential Annualized Return-on-Investment: +74.1%

= (+$461.32/$22,738.68) * (365/10 days)

September 18th, 2026 Options Expiration Results

2026-09-19T08:07:32.543-04:00

The Covered Calls Advisor Portfolio had two Covered Call positions with September 4th, 2026 options expirations and both positions (Alphabet Inc. and NVIDIA Corporation) were in-the-money at yesterday's market closing, 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. Alphabet Inc. (GOOGL) -- +1.0% absolute return-on-investment (equivalent to +42.4% annualized return-on-investment) for the 9 days of this investment. This Alphabet Covered Call position had a $320.00 strike price and it closed in-the-money at $349.54 yesterday. The original blog post showing the details of this position is here.

2. Nvidia Corporation (NVDA) -- +0.8% absolute return-on-investment (equivalent to +39.9% annualized return-on-investment) for the 7 days of this investment. This NVIDIA Covered Call position had a $212.50 strike price and it closed in-the-money at $222.27 yesterday. The original blog post showing the details of this position is here.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net