Out of My Long Term Options With Nvidia

Yesterday I left my home and computer halfway through the trading day. I had to take a trip to Boston. Before I left I placed an order to “Sell to Close” my 3 contracts of NVDA 1/15/21 $499 Calls. When I arrived at my destination I noticed I was filled on my order.

Selling this position at this time, with 4 months remaining to expiration, is sticking with my plan to get out of as many positions as I can before the election.

9/9/20 – Buy to Open 3 NVDA 1/15/21 $490.00 C @ $76.00

9/29/20 – Sell to Close 3 NVDA 1/15/21 $490.00 C @ $81.00

 Profit +$1500 

When I bought this option I was hoping to stay in the position for about a week. After I bought there was a pull back with big tech. I had an opportunity to get out with a profit on 9/15 but with the pull back the size of the profit did not make me happy. Yesterday with the market up, and the position getting old, I placed the order to sell with a $5 profit. I am very happy getting a $5 profit for $1500 on the 3 contracts.

When trading options you must understand that it’s not science. All the indicators we watch that help us predict how much a stock must move for a certain profit changes when there are swings in the stock and Time Decay starts to kick in. These indicators help when everything moves nicely, in a timely manner. The indicators I talk about are all the variables that make up the option’s value, or premium. And of course “The Greeks.”

There is a lot to learn, but if you do, the reward is great. Keep plugging away and send me any questions.

The bottom line is I’m very happy with the profit I made with this position. I held for 3 weeks and made $1500. A return of 6.5%. Not the best but I’ll take it!

Successful trading,

Steve

The Options Coach