Comments:
Total credits collected/realized gain of 11.56 ($1156), with the difference between 160 and current price (125.66) an unrealized loss.
Will look to sell call against on Monday with a starting cost basis of 160.00/share, as well as potentially covered strangle (short put + stock + short call). Unlike my QQQ 300 covered call (See Post Below), this one is on margin, where being in stock becomes a buying power hog relative to being in an options contract, so the motivation may look to exit at the earliest possible juncture for a scratch, rather than hang out in it endlessly. That being said, both NVDA and AMD are kind of "premium seller faves," since 30-day IV is decent a lot of the time.
I'll start out selling 160 calls against and then proceed to roll those mechanically at monthly opex so long as my cost basis remains above current price.
Total credits collected/realized gain of 11.56 ($1156), with the difference between 160 and current price (125.66) an unrealized loss.
Will look to sell call against on Monday with a starting cost basis of 160.00/share, as well as potentially covered strangle (short put + stock + short call). Unlike my QQQ 300 covered call (See Post Below), this one is on margin, where being in stock becomes a buying power hog relative to being in an options contract, so the motivation may look to exit at the earliest possible juncture for a scratch, rather than hang out in it endlessly. That being said, both NVDA and AMD are kind of "premium seller faves," since 30-day IV is decent a lot of the time.
I'll start out selling 160 calls against and then proceed to roll those mechanically at monthly opex so long as my cost basis remains above current price.
Trade active:
Selling the February 17th 160 call against for a 5.15 credit. Cost basis/break even of 154.85. Going farther out in time than I would've liked, but NVDA only has five wides a lot of the time, so I wanted to collect at least 5.00 in credit so that I can potentially roll down to the next strike if I have to, which would be the 155.
Trade active:
NVDA's up 6.00+ for the day ... . Rolling out on strength to March for a 1.77 credit. Cost basis of 153.08.
Trade active:
With earnings 6 days away and NVDA up massively, rolling out to April for a 2.45 credit. Cost basis of 150.63.
Trade active:
With the short call in the money, rolling the April 160 out to the June 160 for a 4.35 credit. Cost basis of 146.28. Doing this before year end, since -- if I'm not mistaken -- the roll results in a realized loss and therefore has tax advantages (in spite of the fact that it reduces my cost basis in my shares).
Trade closed manually:
Rather than waiting all the way until June (a lot of stuff could happen), closed this out today for 147.15/contract credit. .87 ($87) profit per contract. I've been goofing around with this setup for quite a long time, so I'm fine with getting out, freeing up the BP (it was a BP hog), and moving on.
