Sold 1 Nvidia Call

With Nvidia (NVDA) at $290.50 I just sold 1 contract of the 4/24/20 $292.50 Call for a premium of $4.10 ($410). This is a Naked Call, but I did place a “Buy Stop” order set at $292.

Buy to Open 1 NVDA 4/24/20 $292.50 C @ $4.10 (+$410)

If the stock stays below my Strike Price of $292.50 until the close tomorrow this Call will expire and I won’t purchase the stock. If the stock goes up to my  “Buy Stop” of $292 the stock will automatically be bought to cover the Call.

I’ll be OK with whatever happens. I will not mind owning 100 shares of this great stock, or I wouldn’t mind the Call expiring as a Naked Call. Either way I’m OK. I guess that’s the best position to be in. At the moment this is a Naked Call but I have a buy order in so this trade gets a Risk Factor 3. If the stock gets up to $292 today while the market is open the stock will get bought. The risk is if the stock makes a big jump over night, The “Buy Stop” order will not get filled.

I also bought 5 Walmart (WMT) LEAPS. I bought 5 WMT 1/21/22 $130.00 Calls at $17.00.

Buy to Open 5 WMT 1/21/22 $130.00 C @ $17.00

Successful Trading,

Steve

The Options Coach