Thursday, November 14, 2019

8 Day trade NVDA

I recently wrote a post about using short term calls in an effort to earn 8% a year from a combination of the call premiums and the dividends.

One stock I mentioned in my previous post was NVDA.  I have a $200 call expiring this Friday.  Based on today's reaction to their earnings, I think that trade will provide all benefits I had hoped for in a very short term.   In this market short term is appropriate.

I did it again today.  I bought at just over $208 and immediately sold the $220 call that expires a week from Friday, 11/22/2019.

So the point is, I wanted 3 calls per year on NVDA that generate at $4.50 per contract.  But in just two weeks, I have cashed a $3.44 call today and $ 2.30 call a week ago.  I am on track!

November 22, 2019 $220 call on NVDA

Will the positive effect of NVDA's earnings carry it for another 8 days? Let's see what happens.

M* MoneyMadam

Disclosure:  Long NVDA with calls