Bought Another 200 Shares of NVDA

Yesterday I did a Triple Play Hedge with Nvidia (NVDA). I bought 200 Shares of the stock at $350. I also sold 3 separate Calls to make my Triple Play Hedge. As you can see below I sold a $360, $370 and an $380 Call, all expiring this Friday. As a result of me buying the 200 shares. 1 of the Calls is Covered and the other 2 are Naked. This is a Triple Play Hedge!

Today NVDA is moving up as it has been. With the stock up $10 I decided to Cover the $370 Call with the buying of another 200 shares at $361. This is no longer a legit Triple Play Hedge. I now have 2 Covered Calls and 1 Naked Call. Instead of 2 Naked Calls as hedging I only have one. Please read my Triple Play Hedge page to understand my strategy.

Here is the Triple Play Hedge and below is the 200 shares I bought today.

Buy 200 Shares NVDA @ $350.00

Sell to Open 2 NVDA 5/22/20 $360.00 C @ $10.25 (+$2050)

Sell to Open 2 NVDA 5/22/20 $370.00 C @ $7.20 (+$1440)

Sell to Open 2 NVDA 5/22/20 $380.00 C @ $ 5.00 (+$1000)

Today’s 200 Shares

Buy 200 Shares of NVDA @ $361.00

Now my only Naked Call is at $380.

Successful Trading,

Steve

The Options Coach