Week 47 / NVDA Post-Earnings Pullback: Covered Call Roll Adds $560 in Potential Income
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
