“Buy to Close” My NVDA Call With a Day Trade

Everyone knows I’m not a “Day Trades,” but once in a while I’ll get out of a position in the same day if I can lock in a nice profit.

Earlier I sold a 10 contract Call against my 1000 shares of Nvidia (NVDA). I brought is a premium of $10,000. With this up and down day I was able to get a $10 premium, then the stock fluctuated down to where the premium was at $5. Since it was early on a Monday I decided to take advantage of the price drop and lock in a $5000 profit with a “Buy to Close.” This money is locked in and already in my mattress. I believe this great stock will be back up during the week and I’ll get another Call sold. Can you imagine I was able to get another $10,000? This week is already a good one. Getting another big premium would be fantastic!

10/19/20 – Sell to Open 10 NVDA 10/23/20 $560.00 C @ $10.00 (+$10,000)

10/19/20 – Buy to Close 10 NVDA 10/23/20 $560.00 C @ $5.00 (-$5000)

Profit +$5000

I’ll let you know as soon as I get another Call sold. But, if I don’t get one sold  I’m happy with the week if it ended right here. I doubt if that will be the situation!

Successful trading,

Steve

The Options Coach