As of February 13, 2026, our covered-call stock portfolio declined slightly by -0.33%, closing at $11,069.
Since I had already rolled my NVDA credit spreads out to the February 27 expiration, there were fewer opportunities for weekly premium generation. Rather than forcing trades, I decided to revisit a familiar name: Pfizer (PFE).
Why I Added Pfizer Back to the Portfolio
I view Pfizer as a potential long-term dividend holding rather than a short-term trading vehicle.
After closing a previous Shell position, some capital became available for a similar-sized setup. Instead of chasing another speculative trade, I deployed that capital into a company I already understand and would be comfortable owning if assigned.
Pfizer offered several characteristics I was looking for:
- Established global pharmaceutical business
- Reliable dividend-paying stock
- Reasonable valuation compared to recent years
- Sufficient options liquidity for income strategies
This was not a prediction that PFE would return to $35 or $45 per share. It was simply a practical income and accumulation trade.
Using Options Premium to Build a Dividend Position
To initiate the position, I opened a PFE Feb 20, 2026 26.5/25 Bull Put Credit Spread.
I then used the premium collected to purchase an additional 0.5 shares of PFE, gradually expanding the dividend side of the portfolio.
This reflects one of the core ideas behind the portfolio: rather than treating options premium purely as income, I prefer using it to acquire productive assets capable of generating future cash flow.
Depending on how the trade develops, I may continue selling biweekly or monthly options on Pfizer with the long-term objective of building the position toward 100 shares.
Portfolio Performance Update
Despite the small weekly decline, the portfolio continued to outperform the major benchmarks.
- Portfolio: +3.32% YTD
- S&P 500: -0.33% YTD
- NVDA: -3.21% YTD
Short-term fluctuations are inevitable, but the broader objective remains unchanged: generate options income while gradually building a portfolio of productive assets.
Current Options Positions
- NVDA Feb 27, 2026 170/150 Bull Put Credit Spread
- 2x BMY Mar 20, 2026 50/46 Bull Put Credit Spread
- PFE Feb 20, 2026 26.5/25 Bull Put Credit Spread
- NVDA Jun 18, 2026 $116 Covered Call
Most short-term premium generation continued to come from NVIDIA, while Pfizer represented an effort to diversify both sector exposure and future dividend income.
Options Premium and Margin Debt
This week generated $14 in options premium.
That is obviously below the portfolio's longer-term income objectives, but not every week will be a high-premium week.
One lesson I continue learning is that forcing trades simply to increase premium often leads to poor risk-adjusted outcomes.
At the current margin balance of approximately -$3,919, maintaining a weekly average of $14 would theoretically require around 279 weeks to eliminate the debt entirely.
Fortunately, I do not expect future premium generation to remain at this level. The long-term objective remains reducing and eventually eliminating margin debt while maintaining a core holding of 100 NVDA shares.
What I'm Watching Next
Looking ahead, the primary positions on my watchlist are:
- PFE 26.5/25 Bull Put Credit Spread
- NVDA 170/150 Bull Put Credit Spread
If either position comes under pressure, the plan remains unchanged:
- Evaluate the probability of recovery.
- Roll forward when appropriate.
- Prefer collecting additional credit whenever possible.
- Avoid unnecessary risk-taking.
Managing positions is often more important than opening them.
Key Takeaway
This week reinforced an important lesson: not every successful week in options trading is defined by large premium income.
Sometimes the better decision is slowing down, avoiding unnecessary trades, and using available premium to gradually build positions in companies you are willing to own for the long term.
For me, Pfizer represented exactly that type of opportunity.
Disclaimer
This article reflects my personal investing journey and is provided for informational purposes only. It should not be considered investment advice. Options trading involves substantial risk and may not be suitable for every investor. Past performance does not guarantee future results.