Sold a 10 Contract NVDA Call and sold 3 LEAPS Positions

I’m having a busy Monday. I’ve already reported a bunch of trades and I’ve been waiting to get filled on selling Calls against my Apple and Nvidia shares. I’m still waiting for Apple but I was just filled on Nvidia.

On 9/1 I bought 1000 shares of Nvidia (NVDA) at $553.85. I’ve sold a few Calls on NVDA since I was long the shares but big tech stocks pulled back a bit so it was tough getting the premium I wanted. This morning with the market up big, NVDA was down most of the day. The stock just started to move and I was filled on a 10 contract Call I like.

With the stock down from where I bought I didn’t like the Calls expiring this Friday. I decided to go out to next Friday, Oct 9th. I sold 10 contracts of the NVDA 10/9/20 $557.50 Calls for a premium of $5.20. This gives me a premium of $5200.

Sell to Open 10 NVDA 10/9/20 $557.50 C @$5.20 (+$5200)

I hope I get assigned next Friday. I’ll make $3.65 on the stock for $3650 and keep the $5200 premium. Not bad for a 12 day deal. I would like to get out of this position going into the election. If I don’t get assigned I keep the $5200 premium and I keep the stock. This wouldn’t be bad either!

This trade gets a Risk Factor 1.

Getting ready for the election I also got out of 3 LEAPS positions.

I’m gonna be writing about buying options with high volatility. And yes, buying LEAPS is buying options! I still buy, but when volatility is high so are premiums. It’s better to sell options when premiums are high from volatility. If you do buy options with high premiums you better take profit when it’s there. A little pull back can put you behind the 8 ball for a while. If you pay high premiums from high volatility, TAKE PROFIT!

I sold 3 LEAPS today.

Nvidia

They are all 1 contract LEAPS. The first was with NVDA for a $600 profit. This is a 6% return in about 3 weeks.

9/4/20 – Buy to Open 1 NVDA 6/18/21 $480.00 C @ $98.00

9/28/20 – Sell to Close 1 NVDA 6/18/21/$480.00 C @ $104.00

Profit +$600

Micron

This was a 30.6% return in about 6 weeks with Micron.

8/17/20 – Buy to Open 1 MU 1/21/22 $45.00 C @ $9.80

9/28/20 – Sell to Close 1 MU 1/21/22 $45.00 C @ $12.80

 Profit $300

Marvell

This MRVL LEAPS I had for little over 3 months. Not a big money trade but I had a 25% return.

6/5/20 – Buy to Open 1 MRVL 1/21/22 $35.00 C @ $8.00

9/28/20 – Sell to Close 1 MRVL 1/22/22 $35.00 C @ 10.00

Profit +$200

Slow and steady, steady and slow! My yearly return is building with every trade. I love the big trades but I also love the small ones!

Successful trading,

Steve

The Options Coach