Friday, September 21, 2018

Shit I came close on my $NVDA short 8 PUT at $262.50 expiry date Sep 21st

I thought I was safe.  $NVDA was trading higher up this morning around $267ish per share, but continued on a down trend close to my short 8 PUTS @ $262.50 strike.  I ended up closing my short 8 PUTS @ 0.03 which cost me $6.67 in commission.  It is way better than gambling with getting assigned 800 shares @ $262.50 = $210k!!  Luckily, I was on my lunch break and saw the breakdown.  I thought $NVDA would have closed above $262.50 per share, but it is definitely testing my strike price 

I am glad I made the move as of writing this 12:46pm... my short PUTS would have cost me 36c to close out which I would have taken a loss on this BULL PUT SPREAD.  It is 1:00pm, $NVDA actually closed at $263.45 which is above my short PUT... ugh, I could have profited $24 and saved on commissions of $6.67.  But what a ride out that would have been!


OptionAccounts (Position)
NVDA 21SEP2018 225 P+246 (-1)
NVDA 21SEP2018 257.5 P-216 (8)
NVDA 21SEP2018 262.5 Pclosed early @0.03 +408 (-8)
SBUX 21SEP2018 50 P+56 (-1)
TD 21SEP2018 76 P+62 (-2

Realized profit for the week:  $556 less $24.41 in commissions.  Commission was higher due to my bull put spread.  I opened my bull put spread on $NVDA on Tuesday (3 day hold)... even though it uses less margin to open the option, it does add up commissions and your risks are inherently higher when your PUT is at the money.  Time to sell more NAKED puts further expiration dates with wider out of the money strike prices.

No comments:

Post a Comment