Picked up these two 11/15/24 110c on that nice dip a few weeks ago (the only time I wanted to pay the longer call prices). My general strategy is to buy mid-long and sell about half the position to cover the rest if it gains 50-100%, or exit before 30-45 DTE especially if theta goes much above ~0.15. This has treated me well with about 100% overall account gain in 6 months. I know it’s a lot of luck too.
I think the conservative thing would be to sell one of these two calls now before earnings on Weds to cover the remaining one and capture a 20% gain. Then, I’d let that remaining one ride to capture any further upside.
However, given they have a Nov expiry (and it’s NVDA, and still well below the ATH) it may be good to keep both since the expiry is almost to next earnings and it could run up quite a bit the next couple months. How would you make this decision, and with what factors?
I’m generally familiar with the Greeks but not necessarily how to use them well and what levels apply to different position setups/decisions.
( just reading my own writing now it comes off as desperate and clingy to baby’s first NVDA long calls lol. )
https://i.redd.it/vbnef2reh1ld1.jpeg
Posted by johnnybuttonvee
12 Comments
You won!! Take the money and run!
Obligatory “good enough to screenshot, good enough to sell”
I think with the market on a knife’s edge basically dependent on which way NVDA goes post earnings, it would probably be wise to take your win and start planning for next week.
Nobody ever went broke booking profits…
You already won the trade…
Definitely would take profit.
If you still have FOMO.
Buy like 5 shares with the profit.
In the same boat with $130 9/20 expiration. My plan is to sell the day of earnings before close
Take the money, the stock is already deep in the money so you aren’t going to catch any of those crazy exponential gains people hope for holding calls through an er, it will basically move with the underlying. If I was you I wouldn’t sell I would exercise but that’s personal preference and capital availability.
you can always hedge and sell calls at a higher strike.
Very low chances they go out of the money, still have a lot of duration left to them, small chance that NVDA doesn’t go up significantly after earnings so I guess the risk is small. The only real “risk” here is whether IV crush will reduce the value of the contracts to the point where whether you sold before or after earnings it would be more or less the same, but selling before came with less risk. But I doubt it.
Basically if you lose on this we’re all losing, market’s crashing.
I have a December expiry position. I’m holding until then
sell 1 and let 1 run ? If it price spikes on Wednesday you could sell the other one too.