I few minutes I was filled on 2 trades. I bought 300 shares of Nvidia (NVDA) at $293 and I sold a 3 contract $295 Call to expire this Friday.
I had a lot of money available because my account has been growing, plus I was assigned on 1000 of Micron this past Friday. I decided to look for 1 good deal with a high priced stock instead of looking for a few smaller deals. I looked at Microsoft, Facebook, PayPal etc. But I really liked what I saw with NVDA. The first thing I liked is they just came out with earnings this past Thursday, which were good and the stock jumped about $15. Besides that I loved their premiums compared to the other high priced stocks.
With the market down today NVDA was up. When I started looking at the stock today it was at $290, up about $1. The market was not moving well so I watched a little while. I finally pulled the trigger when the stock was at $293. The stock was moving up slowly but it was moving up! With the $295 Premium at $3.20 I had to make a few phone calls and be away from my computer. I placed the order to sell 3 NVDA 2/21/20 $295 Calls for the premium of $3.50. I know that’s a little distance from $3.20 but I figured, what the hell, I might be away from the computer for a while, the stock might go up. I was away for about 25 minutes and I was filled at $3.50. Not only that but the stock was up to $296 and the premium was now at $3.75. O well! I could have made more but I’m happy. With a high priced stock, and the coronavirus still out of control, I want to get assigned. I want to make money and get out.
Buy 300 Shares NVDA @ $293
Sell to Open 3 NVDA 2/21/20 $295.00 C @ $3.50 (+$1050)
I think this is a great deal. I got a premium of $3.50 which is a 1.2% return with a $1050 premium in 4 days. And if I get assigned I’ll make $600 on the stock sale. I love deals like this. With assignment I’ll make $1750. So yes, NVDA is moving up and I might have an Opportunity Lost, but I want NVDA to continue up and stay above my Strike Price until Friday. My strategy might not be for everyone, but last year I was up 101% and I want to stick to my game plan. In the market, especially this market with the virus, there’s no room for greed!
Successful trading,
Steve
The Options Coach