Last week I focused on trading options on NVIDIA Corporation, but instead of simply selling long-dated cash-secured puts and waiting weeks, I used a faster approach: selling puts first and then buying them back at a lower price.
This style of trading is very active and dynamic. Rather than waiting passively for options to expire, I monitor the price movement closely and close positions once a reasonable profit appears. $NVDA 20260327 170.0 PUT$
The rhythm is quick, disciplined, and precise—almost like a Korean-style performance rhythm, where timing and speed matter.
The goal is simple:
collect premium, close early, and repeat multiple times.
Last week, using this method across several trades, the total profit added up to around $200.
⸻
The Core Strategy – Sell First, Buy Back Later
The main strategy used here is called short selling a put option.
Instead of buying an option and hoping it rises in value, I sell the option first, which means I receive the premium upfront.
Later, if the option price drops, I buy it back cheaper, locking in the difference as profit.
For example:
Sell put at $1.01
Buy back later at $0.84
Profit:
$1.01 – $0.84 = $0.17
Since one options contract represents 100 shares, the profit becomes:
$0.17 × 100 = $17
This may look small, but when repeated many times across different trades, the gains can accumulate quickly.
⸻
Why I Trade NVIDIA Options
I chose NVIDIA Corporation because it has several characteristics that make it attractive for options trading.
1. High Volatility
NVIDIA moves frequently during the trading day. These price swings increase the value of options premiums, which is beneficial for option sellers.
Higher volatility means:
• higher premiums
• more trading opportunities
• faster price movement in options
⸻
2. Strong Market Interest
Because NVIDIA sits at the center of the artificial intelligence boom, the stock attracts enormous trading volume from institutions, funds, and retail traders.
This creates very liquid options markets where trades can be executed quickly.
⸻
3. Active Daily Price Movement
The stock often moves several dollars in a single trading session.
For short-term option traders, these small movements can quickly reduce option premiums, allowing positions to be closed early for profit.
⸻
Examples of Trades From Last Week
Several trades followed the same pattern: sell the put first, then buy it back later.
Trade Example 1
Sell put: $1.01
Buy back: $0.84
Profit:
$0.17 × 100 = $17
⸻
Trade Example 2
Sell put: $0.89
Buy back: $0.78
Profit:
$0.11 × 100 = $11
⸻
Trade Example 3
Sell put: $1.81
Buy back: $1.70
Profit:
$0.11 × 100 = $11
⸻
Trade Example 4
Sell put: $2.40
Buy back: $2.25
Profit:
$0.15 × 100 = $15
⸻
Trade Example 5
Sell put: $3.97
Buy back: $3.75
Profit:
$0.22 × 100 = $22
⸻
These trades may look small individually, but together they created a steady stream of profits throughout the week.
By repeating the process multiple times, the total gains reached around $200.
⸻
The Advantage of Time Decay
One of the key reasons this strategy works is something called time decay.
Option prices slowly decrease as the expiration date approaches. This means that if the stock price remains stable or moves slightly upward, the option value will gradually shrink.
Since I am selling the option first, this decay works in my favor.
Every hour that passes slightly reduces the value of the option.
When the premium drops enough, I close the trade by buying the option back.
⸻
Why I Prefer Closing Trades Early
Another important part of the strategy is closing trades early instead of waiting until expiration.
For example:
If I sell an option at $1.00, and it drops to $0.80, I might close the trade immediately.
Even though the option could continue falling further, locking in profits early has advantages:
• risk is reduced
• capital becomes available for the next trade
• profits are secured
This approach keeps the trading cycle active.
⸻
The Rhythm of Active Trading
This trading approach relies on fast decision making and discipline.
The steps are straightforward:
1. Sell the put option
2. Wait for the premium to decrease
3. Buy the option back
4. Lock in profit
5. Repeat
Instead of one large trade, the focus is on many smaller trades throughout the week.
This creates a steady flow of income when market conditions cooperate.
⸻
Plan for the Coming Week
Looking ahead, the plan is to continue trading NVIDIA Corporation using the same approach if the stock stabilizes or recovers slightly.
The strategy will remain the same:
• sell short-term put options
• monitor premium movement
• buy them back once the price drops
If market volatility remains active, there may be opportunities to repeat the same cycle multiple times again.
The target would be similar to last week—aiming to capture consistent small profits that add up over time.
⸻
Final Thoughts
Trading options does not always require predicting the exact direction of a stock.
Sometimes it is simply about taking advantage of premium decay and market movement.
By selling puts first and buying them back cheaper, it is possible to generate steady gains without holding positions for long periods.
Last week this method produced around $200 in profits trading NVIDIA Corporation.
If the market conditions remain favorable and volatility stays elevated, the same strategy may continue to provide opportunities in the coming week.
@TigerStars @TheBeautyofOptions @TigerStars @MillionaireTiger @TigerEvents @TigerCoinCenter @Daily_Discussion
Comments