As of February 27, 2026, our covered-call stock portfolio has increased slightly by +0.27% and closed at $11,343.
Last week was NVDA earnings week, and the stock moved the market more than expected.
Earlier in the week, I decided to proactively roll our June $116 covered call up and out to a November $120 covered call. The main concern was assignment risk in case of a strong post-earnings rally. By rolling, we extended duration but improved positioning: the adjustment adds roughly $560 in additional potential income over the next nine months, including about $160 in premium received from the roll itself.
Earnings were objectively strong, yet the stock dipped. Some traders were frustrated. That reaction is understandable, but post-earnings pullbacks after good results are not unusual, especially when expectations and positioning are stretched. Markets price forward, not backward.
The larger structural risk remains the AI trade. If sentiment shifts sharply—similar to last year’s DeepSeek-driven drop that briefly pushed NVDA below $100 before a rapid recovery—we could see outsized volatility again. That scenario cannot be ruled out.
To manage downside and volatility risk, we continue selling credit spreads to systematically collect premium while actively managing positions if strikes are tested. A moderate pullback after earnings is not unhealthy. It resets positioning and premiums.
That said, volatility is likely to remain elevated. We should assume larger-than-normal swings rather than anchor to recent stability.
Our covered call portfolio is up 7.29% YTD, slightly outperforming the S&P 500 (+0.04%) and NVDA (-3.83%) YTD.
Current options positions:
- NVDA MAR 6, 2026 167.5/160 Bull Put Credit Spread
- 2X BMY MAR 20, 2026 50/46 Bull Put Credit spread
- PFE MAR 13, 2026 26 Cash-Secured Put
- NVDA NOV 20, 2026 $120 Covered Call
This week we executed two trades:
- Rolled the NVDA covered call up and out to November
- Sold a weekly NVDA credit spread
Total options premium collected: $223.
This is the highest weekly premium so far, surpassing the previous record of $167 set back in November. The increase was driven by the earnings-related volatility and the longer-dated roll, which created unusually favorable pricing.
We should not expect this level of premium to repeat consistently. The week was atypical, with elevated implied volatility and strong option demand. Still, locking in a record premium under controlled risk parameters is a positive outcome.
Additionally, from this week’s options income, I purchased 0.1 shares of NVDA, incrementally increasing our core equity position.
This keeps the strategy consistent: use options premium not only as income, but also to gradually compound the underlying stock exposure.
One of the primary goals of our covered call stock portfolio is to gradually reduce debt while maintaining a long position of 100 shares in NVDA. Notably, we earned $223 in options premium this week. If we can consistently average that amount, it would take approximately 17 weeks to fully eliminate our margin debt of $3,739. I’d be quite happy to eliminate this margin debt in 2026 without selling any stock - let’s see how it goes.
Looking ahead to next week, I will be closely monitoring the NVDA $167.5/160 put spread. Should any of our positions come under pressure, the plan is to roll them forward—ideally for a credit.
Never miss an update! Get weekly insights delivered to your inbox—subscribe to the Covered Calls with Reinis Fischer newsletter
