Out of 2 Nvidia (Split) Contracts

I’ve been keeping you up on my Nvidia (NVDA) positions I entered because of the 4:1 split. One of the Calls I bought is listed below. I bought this position on 7/19/21, the day of the split.

7/19/2 – Buy to Open 1 NVDA 1/21/22 $760.00 C @ $83.00

After the close on 7/19 this 1 contract I bought at $83 became 4 contracts at $20.75.

Today I sold 2 of the 4 contracts. I sold them for $45.75.

I’m in at $20.75 and out at $45.75. This is a profit of $25 per contract. I sold 2 contracts which represent 200 shares.

The profit of $25 times the 200 shares is a total profit of $5000.

 

Post 4:1 Split “Sell to Close”

Sold 2 of 4 Contracts

7/19/21 – Buy to Open 1 NVDA 1/21/22 $760.00 C @ $83.00 ($20.75 post split) 

8/30/21 – Sell to Close 2 NVDA 1/21/22 $760.00 C @ $45.75

 Profit +$5000 

 

Remember, I owned 4 contracts. I only sold 2 of them for the $5000. I could have sold all 4 for $10,000 but I decided to sell half of the position because the contracts have a lot of time to grow in value. But I wanted to lock in some profit.

In addition to these 2 remaining contracts I still own 4 NVDA 1/20/23 $205 Calls. These have over 500 days before expiration.

So far I have $14,600 locked in on my split strategy with NVDA. And I still own 6 more contracts.

I always hear the gurus on TV saying that stock splits mean nothing. Well, they can think what they want, it means something to me! It means a lot of money!

 

Successful trading,

Steve

The Options Coach