Before the Nvidia (NVDA) split I bought (4) 1 contract Calls and different Strike Prices and Expiration Dates. Each Call turned into 4 Calls post split. Listed below is one of the Calls I bought.
7/15/21 – Buy to Open 1 NVDA 10/15/21 $760.00 C @ $60.00
This turned into 4 contracts post split.
4 NVDA 10/15/21 $190.00 C @ $15.00
Two days ago I sold 2 of these contracts at $19 for a $800 profit. This morning I sold the other 2 at $20 for a $1000 profit.
Post 4:1 Split “Sell to Close”
7/15/21 – Buy to Open 1 NVDA 10/15/21 $760.00 C @ $60.00
8/4/21 – Sell to Close 2 NVDA 10/15/21 $190.00 C @ $20.00
Profit +$1000
I am completely out of this option I bought on 7/15/21. I invested $6000 on the 1 contract and I’m out with a total of $1800 profit. That’s a return of 30% for less than a 1 month investment. This is the power of splits with a good stock.
So far the NVDA split brought me a profit of $9600. You can see all my trades involving the NVDA split at the bottom of my Active Trades page.
I bought a few options I exited before the split. Out of the (4) 1 contracts Calls I bought to hold post split I’m still holding 3 of them, which is now 12 contracts.
Successful trading,
Steve
The Options Coach