Sold 100 Shares NVDA, Bought LEAPS
Sold 100 Shares of Nvidia
On July 7th, I acquired 100 shares of Nvidia (NVDA) through assignment of a $160 strike Put option I had sold on July 2nd. Today, I sold these shares at $162.70, locking in a capital gain of $270, plus the $280 premium from the original Put sale.
Trade Details:
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Bought: 100 shares NVDA @ $160
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Sold: 100 shares NVDA @ $162.70
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Capital Gain: $270
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Option Premium Received: $280
New Position:
I also used the proceeds to buy 2 slightly ITM NVDA LEAPS:
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Bought: 2 NVDA 1/15/27 $160 Calls @ $38.20
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Total Cost: $7,640
Trade Rationale:
I’m still bullish on Nvidia, but prefer holding LEAPS over shares.
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100 shares cost: $16,270
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2 LEAPS cost: $7,640
This NVDA LEAPS has a Delta of 0.66. The Delta tells me how much my LEAPS option increases in value with every $1 move in the stock price. If the Delta is .66, my 2 options will increase in value by $132 with every $1 move in the stock.
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2 LEAPS: $1 move in NVDA → +$132 (0.66 × 2 × $1)
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As NVDA rises, Delta increases.
This strategy reduces capital at risk while maintaining similar upside exposure.
Funds Overview:
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Proceeds from selling shares: $16,270
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Cost of 2 NVDA LEAPS: $7,640
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Available cash for future trades: $8,630
Summary:
Sold 100 NVDA shares for a modest profit and used the capital to buy 2 NVDA LEAPS. Now I have less cash tied up, greater leverage, and more funds available for new opportunities. And with the less cash in the LEAPS I will make more money if the stock moves higher.
Any questions on this strategy send me an email.
📈Successful trading,
Steve
The Options Coach