Out of My Long NVDA Calls

Back on 1/10/22 I bought 7 contracts of the NVDA 6/17/22 $270 Calls for a premium of $28.50. The beginning of the year was a rough start and NVDA backed off a bit leaving me with a position down multiple thousands of dollars. These contracts still had 3 months until expiration but since I bought them a few months ago I was concerned with Time Decay. I placed an order to exit the position with the price of $36 but I didn’t get filled. I decided to lower my price to $35.75 and I was filled about 10 before the close.

I got in for $28.50 and I just sold the 7 contracts at $35.75. With NVDA moving lately it turned a big loss into a $5075 gain. I’m very happy getting out with this profit. If I think NVDA will continue to move I can buy more Calls going out further, maybe Sept.

 

1/10/22 – Buy to Open 7 NVDA 6/17/22 $270.00 C @ $28.50

3/29/22 – Sell to Close 7 NVDA 7/17/22 $270.00 C @ $35.75

Profit +$5075

 

This is why I don’t buy short term options. In January, if I bought an April option I would have lost my money. Going out to June I paid more for the option but I bought time for the Call to recover. My advice is, stay away from buying short term options

If you have any questions on Time Value or Time Decay send me an email.

 

Successful trading,

Steve

The Options Coach