Buying Low and Selling High - $NVDA

I have an all-time high week, thanks to NVDA. I totaled $11,863 this week alone. I’m chuffed!

I have been trading NVDA for years now. Let me be clear: I don’t think anyone should start by trading such a volatile stock as NVDA and I also don’t think you should trade it around earnings unless you are an experienced trader.

((I’m experienced, and I know how to play earnings. We’ll have courses on that in the future.))

Let’s start at the beginning.

I bought NVDA around $375 - $445 and collected 290 shares in the past 6 months.

The day of earnings, I sold a 2-day covered call for a $500 strike price for $1170 in premium. The premiums were whopping high. If the stock sold away I was keen to profit on my shares. But, it didn’t pass $500 strike price on Friday, so I’m keeping the stock for another covered call on Monday.

My second set of shares had a covered call on them and I rolled the call out to 9/29 for a $500 strike price to collect another $128 in profit.

When earnings came in, the stock went wild, I sold the 90 shares I had for a profit of $5,580!

I have 2 LEAPS that I bought before earnings. One I sold just before earnings for a profit of $1,715.

The other LEAP I held until after earnings in the event the stock went up for earnings and stayed there. The jump in the stock didn’t stick too much, but it held long enough for me to take another $445.

The total I made in NVDA was $7,323.00

The great thing about this is that it is repeatable. I can execute a similar strategy next quarter, and the next one, and so on.

What happens if NVDA is no longer a good stock?

No problem. I’ll switch stocks.

Options trading is as simple as repeating the same recipe over and over again.