Sold 2 NVDA Calls

On 8/6 I bought 100 Shares of Nvidia at $453.90. On 8/10 I bought another 100 shares at $445. I now own 200 shares at an average of $449.45.

The last few days NVDA dropped, as did most stocks in the tech heavy NASDAQ. This was a result of the NASDAQ’s crazy run and investors rotation out of tech and into value stocks in the DOW.

Today it looks like tech investors are taking advantage of the lower prices and the NASDAQ is back on the move.

I’m trying to get Calls sold on my stocks that dropped below my buy-in price. If the stock drops enough it’s tough to pick a Strike Price and an Expiration Date that is worth the risk of the trade.

Even though NVDA is down this week, I just sold 2 NVDA Calls that I’m happy with. Using the Strike Price of $455 and the Expiration Date of this Friday, I was filled with a premium of $3.

Sell to Open 2 NVDA 8/14/20 $455.00 C @ $3.00 (+$600)

The stock is moving nicely so if I get assigned I’ll make $5 on the stock sale and I keep the $600 premium. If I don’t get assigned I just keep the $600 premium. Either way I’m happy! This trade gets a Risk Factor 1.

With the NASDAQ down Monday and Tuesday a lot of my stocks are down. However, I should still lock in some good money. Not as much as recent weeks, but I should do over $4K.

Successful trading,

Steve

The Options Coach