sweetandsour wrote: ↑08 Jul 2024, 11:44
Del wrote: ↑18 Jun 2024, 14:36
I'm waiting to sell NVDA until after the AI boom matures. Three to five years, maybe.
Not me; I sold this morning when it peaked above 130. Our IRA does the holding, but this trading account does the trading, and the longer I held it the more nervous I got. I regret not buying more, though, when it dropped back to 119 or 120 last week. My trading account missed out on some direct NVDA upside, but our IRA made up for it.
Otherwise there were one or two learning opportunities that cost my trading account, but I'm still up 15.96% for the year. Not taking advantage of a trailing stop cost me ~$600, but I'll try not to make that mistake again. We'll see if upcoming earnings reports presents some opportunities.
Well done on catching NVDA at the top today.
Up 16% is pretty good, and you learned a lot on the way. Just be mindful that SPX is up 16.9%, so you are tracking the market -- not beating it.
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I bought 100 NVDA on 7/1 at 121.25. I sold 1 covered call (exp 7/12) at strike 130 for $111. (delta = .2)
On 7/3, NVDA spiked to 128.25. I sold 10 naked calls (exp 7/12) at strike 140 for $413. (delta = .1)
I only sell naked calls when the price runs up and stops at resistance. And when the market isn't expecting any big news soon. That's a rare enough situation, and I have to see it in real time as well. This is only the second time I have sold naked calls. Last time was also NVDA, back in March. I made $619 on the trade.
I set the strike way up high and keep the term short, so I don't end up holding a lot of short stock.
It got above 130 briefly today (7/8). If it closes above 130 on Friday, I will make $1400 over two weeks. I will buy it back and do it again.
If it closes around, say, 128.5, I will make $1,240 over two weeks. Plus I get to sell covered calls again.
We'll see what Friday brings. June CPI drops on Thursday morning, and weekly Unemployment claims. Mr. Market wants to see lower inflation and higher unemployment.