Earlier when I reported buying a NVDA Call as part of my NVDA split strategy I wrote that I’d be buying more NVDA Calls. I said I would buy 1 or 2 contracts the day of the split. If the stock split at $800 with a 4:1 split I would buy the $200 LEAPS Call. I also mentioned I might buy the LEAPS before the split. Well today NVDA is down, so with the stock at $818 I decided to buy the LEAPS today. I bought 1 contract of the NVDA 1/20/23 $820 Call for a huge premium of $164.
Buy to Open 1 NVDA 1/20/23 $820.00 C @ $164.00
I predict (which means nothing) the stock will split at about $860. If the stock gets higher I might sell this position and buy another after the split. If I don’t sell this position I’ll hold it through the split and it will be my long term hold. Hopefully the stock will pop because it’s more affordable in the $215 – $220 area. I’ll end up with 4 contracts.
I buy LEAPS as protection. I do not plan on holding this position until January of 2023. If the stock pulls back for some reason I have plenty of time for the stock to recover. I hope to sell this position before the end of the year.
Any questions send me an email.
Successful trading,
Steve
The Options Coach