Nvidia Covered Call

Today is Election Day. There can be some market moving news after the close but I decided to get into another trade anyway.

I like the way Nvidia (NVDA) has been moving so today I bought 100 shares of the stock and sold a 1 contract Call. This is a Grasshopper trade! I bought the 100 shares at $146 and sold a Call with the Strike Price of $149. I received a premium of $3.50. The total premium is $350.

Buy 100 Shares NVDA at $146.00 

Sell to Open 1 NVDA 11/11/22 $149.00 C @ $3.50 (+$350)

This $3.50 is a very nice premium for a 4 day trade. This is a 2.3% return and fits into my “1 Week/1%” strategy. As I write the stock is at $147.60. This position has a very good chance of getting assigned at $149. If assigned I will receive another $300 profit on the sale of the 100 shares of stock. If assigned my total profit will be $650, $350 premium and the $300 on the stock. If assigned the Return on Investment will be 4.45%. This is a good Grasshopper trade and I give it a Risk Factor 1.

I made this trade about 2 hours ago. I would have liked to get it to you sooner but I was with a student. I’m back into this full swing.

Let’s watch closely to see how this trade plays out.

Any questions send me an email.

 

Successful Trading,

Steve

The Options Coach