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    Poor man’s covered calls on NVDA

    I picked up the $55 1/16/26 calls with the while the stick was at about 105. I'm looking to collect some premium here. For those of you with experience. What do you recommend?

    Poor man's covered calls on NVDA
    byu/Fluffy_Goal_6240 inoptions



    Posted by Fluffy_Goal_6240

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    5 Comments

    2. nivek_123k on

      tbh i’m tempted. i do think nvda is a great company, but it’s not at a great price. i would love to see this in the $65-$70 range, i’d take a nice big bite at that fair market price.

      i currently have a small position. a synthetic covered call at 1% capital. irrelevant on the account, but i feel like the market is a coiled spring right now, and this might be one of those that pop.

      i would never tell someone to time the market, but on this one I’d look to let the price jump to $110, then sell a monthly -30 delta call against the longs.

      if i get 35% profit on the position, i take it and run.

    3. Uugly2 on

      Great way to start !

      NVDA is one that I do PMCC on.

      You have picked a good one. From here one can put one short CALL for every one LEAP. ** The short leg MUST ALWAYS have a strike price at least slightly higher than the break even price for your LEAPs. Go to the first DTE where one can collect premium at a very low delta (Personally I’ve started to sell 0.09 delta or there about) This conservative set up makes on a safe income trader. Your LEAP is the cake. The short leg is a thin layer of yummy icing. However, when there are market drawdowns and the underlying price drops the income from your shorts can be substantial even at the low deltas ! One also has less acceleration of losses when the underlying price rises. I frequently trade, close, open, roll my PMCC short legs to capture profits of 25% – 50% or to capture credit premium when it appears possible on a loser

    4. rdepauw on

      I would be patient right now and try to wait for a pump.

      It’s a bummer to be right about the entry and get it called away within the first month for a couple bucks of premium.

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