Sold a 10 Contract Call on Nvidia

I’ve own 1000 shares of Nvidia (NVDA) at $553.85 since 9/1. As you know, I’ve been selling Calls and bringing in big premiums. With the recent market pull back NVDA also dropped back. Today NVDA is up over $17 and I was able to get another Call sold.

With the stock well below where I bought in, earlier I placed an order to sell 10 contracts of the NVDA $555 Calls to expire this Friday. I placed the order with a premium of $1.40 then I went out to vote. I got home after the market closed and I noticed I was filled on the order. The $1.40 is much lower than what I’ve been receiving but that’s the way it goes when your stock drops back. I picked the Strike Price of $555 in the case the stock moves up big after the election. I didn’t want to use a lower Strike Price and possibly get assigned and lose money on the assignment. When I placed the order the stock was around the $552 area. Believe it or not, this stock can easily move $30 before Friday. I didn’t want to hold the stock going into the election but I wasn’t assigned on past Calls. I figured if I own the stock I might as well bring in a premium.

Sell to Open 10 NVDA 11/6/20 $555.00 C @ $1.40 (+$1400) 

My recent premiums were much higher, but I take the $1400.

This election season was a wild one! Let’s hope, with the election behind us, the market is happy getting rid of the uncertainty. I hope when the results come out you are happy.

Successful trading,

Steve

The Options Coach