If you are a long time reader you know I have a stock split strategy. You saw me use it with Apple and Tesla, and now you might have been following my trades since Nvidia (NVDA) announced a 4:1 split.
Today I sold my 3rd long option with another nice profit. The stock is high and it’s well above 70 RSI. I wanted to take the 1 week profit in the case of a pullback. I was filled about 30 seconds before the close.
6/29/21 – Buy to Open 1 NVDA 10/15/21 $790.00 C @ $68.00
7/6/21 – Sell to Close 1 NVDA 10/15/21 $790.00 C @ $91.00
Profit +$2300
I bought my first long option on 6/8 and held for 9 days for a $3000 profit. On 6/21 I bought another 1 contract option and sold 2 days later for a $2500 profit. My third option I bought on 6/29 and sold today. This one I held for 7 days for a $2300 profit.
I’ll be looking to buy 1 or 2 more contracts about 5 days before the split. The stock splits on July 19th after the close. I’ll hold this position until the day of the split. I hope to sell the day of the split or the day after.
I’ll also look to buy 1 or 2 more contracts the day of the split and hold for a while. These will be LEAPS. I like to buy after the split because the price will be much lower. Many times a stock will move a lot after a split because of the lower price. More people can afford the stock.
If you have any questions on my split strategy please send me an email.
Successful trading,
Steve
The Options Coach