Out of My Nvidia Call
I hope everyone had a great Memorial Day. I just returned home from a birthday trip to Niagara Falls and started the 3 day weekend at home. I marched in the Staten Island Memorial Day Parade yesterday and overall I had a great weekend remembering those who gave their lives for our freedoms.
On Saturday I sent out a post announcing the Nvidia 10:1 stock split and my plans I have to bring in some money in the next few weeks with this very hot stock. I started my Nvidia campaign with the buying of 5 contracts of the NVDL Calls on 5/22/24. I bought this Nvidia EFT to capture some gains on a possible Nvidia move with the announcement of their quarterly earnings. My strategy worked and I sold this 5 Call position the next day with a $2250 profit.
I wrote in my last post to be very careful with NVDL, which is an Nvidia EFT. You must do your homework when investing in this vehicle. Also, when I write about my moves, please be careful and notice when I’m investing in NVDL and NVDA. NVDL is the EFT and NVDA is the stock.
In my Saturday post I also mentioned that I bought a 1 contract Call with Nvidia on Friday. I wrote that I plan on holding this position through the split and end up with 10 contracts as a result of the split. I also wrote that Nvidia could have a little pull back this week because of profit taking. This is normal after a company announces a stock split.
This morning Nvidia opened with a strong pop and the stock went up $52. With a possible pull back in mind this week I decided to take the profit I had with my 1 contract Call I bought 2 trading day ago. I bought 1 NVDA 6/24/24 $1000 Call on Thursday for $79 and I sold it a few minutes after the open today for $129. That is a $50 gain on this Call which is $5000. I love taking profit so I grabbed this 5K and I will look for a good opportunity to get back in before the split.
Buy to Open 1 NVDA 6/24/24 $1000.00 C @ $79.00
Sell to Close 1 NVDA 6/24/24 $1000.00 C @ $129.00
Profit $5000
This is a return of 63% in less than 2 day.
When I get back in I will buy a Call that is At-the-Money or slightly In-the-Money. This Call will have the Expiration Date of June 14th or June 21st. As soon as I buy it, I’ll report it. The split is on June 7th and will trade at the split adjusted price on June 10th.
Be very careful!
Successful trading,
Steve
The Options Coach