This trade was originally executed on September 1, 2026, before the public launch of Options Income Journal. It is being added to the journal from my actual trading records. The prices shown are my actual fills, and the decisions described are the decisions I made while managing the position.

Owned 200 shares of WMT at approximately $123 per share
Sold 1 WMT September 18 $110 Call at $0.74

The covered call generated $74 of immediate premium income on 100 of my 200 WMT shares. Unlike a buy-write, I already owned the stock. WMT had declined substantially below my original purchase price, so this trade was part of managing an existing position rather than initiating a new one.

My WMT shares had an original cost of approximately $123 per share, while the stock was trading well below that level. Rather than simply waiting for the shares to recover, I wanted to begin generating option income against the position.

I chose the September 18 $110 call because it provided a reasonable premium while giving WMT additional room to recover. My objective was not to recover the entire unrealized loss with a single option trade. Instead, I wanted to collect premium incrementally while continuing to manage the shares.

The $0.74 premium reduced the effective economic basis on the 100 shares covered by this call from approximately $123.00 to $122.26 per share, before commissions and fees.

This trade illustrates an important distinction in how I use covered calls. Sometimes I sell a call immediately when purchasing shares as part of a buy-write. Other times, as with WMT, I use covered calls against an existing position to generate income while the stock works toward recovery.

Because my original stock basis was substantially above the $110 strike, assignment at $110 would still result in a loss on the shares. I therefore viewed this as a position-management trade rather than a simple income trade.

I was willing to manage or roll the call if WMT continued moving higher and the economics justified doing so.

September 1: With WMT recovering from lower levels, I sold 1 September 18 $110 covered call for $0.74, generating $74 in option premium.

September 10: WMT had continued recovering and was trading around $108.93, bringing the $110 strike much closer to the market price. The position remained open and continued to require monitoring as expiration approached.

As of September 10, 2026, the position remains open. I continue to own 200 WMT shares, with one September 18 $110 covered call outstanding against 100 of those shares.

So far, this particular covered call has generated $74 in option premium. The larger objective is to continue using option income, where appropriate, to reduce the economic cost of the WMT position over time.

The trade is not finished. I will continue documenting subsequent rolls, expiration, assignment, or other adjustments as they occur.

The prices reported in Options Income Journal are my actual execution prices.

For current trade alerts, stock and option prices can move materially between the time I execute a trade and the time an alert reaches you.

If the economics of a trade have changed, do not chase my reported fill. Options Income Journal documents the trades I make in my own account; these are not trade instructions or signals.

Options Income Journal is provided for educational and informational purposes only. Nothing published here should be considered individualized investment, financial, tax, or legal advice, or a recommendation to buy or sell any security or option. Options involve risk and are not appropriate for every investor. You are responsible for evaluating whether any investment or options strategy is appropriate for your own circumstances.