$NVDA 20270416 230.0 PUT$ 🐶💰 NVDA Put Scrapping: Why I Take $9–$20 at a Time
📈 I Don’t Always Need a Big Win
When I trade NVDA options, I don’t always try to capture a huge move.
Sometimes, I simply want to scrap a small amount of premium from the option price.
My idea is straightforward:
Sell the put at a higher premium → wait for the premium to fall → buy it back cheaper → keep the difference.
For me, this is not about trying to predict every movement in NVDA.
It is about taking advantage of small changes in option prices.
My recent trades show exactly what I mean.
I sold an NVDA put at $11.30 and looked to buy it back around $11.20.
I also had another trade where I sold around $14.55 and looked to buy around $14.45.
Most recently, I sold an NVDA put at $18.10 and queued an order to buy it back at $17.95.
The difference may look tiny.
But that is exactly the point.
I am trying to make money bit by bit.
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💵 $0.10 Can Become $10
One standard US equity option contract represents 100 shares.
Therefore, even a small movement in the option premium can have a meaningful dollar value.
For example:
Sell at $11.30
Buy back at $11.20
Difference:
$11.30 − $11.20 = $0.10
Multiply that by 100 shares:
$0.10 × 100 = $10
So a ten-cent premium movement represents approximately $10 gross profit per contract, before commissions and fees.
That is why I don’t automatically ignore a $0.10 or $0.15 movement.
For a single trade, $10 or $15 might not look exciting.
But if I repeatedly find opportunities where the risk is acceptable, these small amounts can accumulate.
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🐶 My $18.10 → $17.95 Trade
My latest example is even clearer.
I sold an NVDA put at:
$18.10
Then I queued a buy order at:
$17.95
The difference is:
$18.10 − $17.95 = $0.15
For one contract:
$0.15 × 100 = $15
So if my $17.95 buyback order is actually filled, the gross premium difference would be approximately $15.
But there is an important warning here.
A submitted order is NOT the same as a completed trade.
My screenshot shows the $18.10 sell order as filled, while the $17.95 buy order is shown as submitted.
That means I should not count the $15 as realised profit until the buyback actually fills.
This is one of the most important rules in my strategy.
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⚠️ WARNING: QUEUED DOES NOT MEAN FILLED
This is where I need to be very careful.
When I sell an option at $18.10, I have received the premium.
But if I place a buy order at $17.95 and it doesn’t fill, I haven’t locked in the $0.15 profit.
The market could move against me.
For example:
I sell at $18.10.
I queue to buy at $17.95.
But instead of falling, NVDA suddenly rallies or falls sharply and option volatility changes.
The option might move from:
$18.10 → $18.50 → $19.00
Now my $17.95 order may never execute.
Therefore, I always distinguish between:
🟢 Order submitted
and
🟢 Order filled
Only after the buyback is filled have I completed the round trip.
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📊 Why Does the Premium Move So Much?
The option premium does not simply follow NVDA’s share price.
Several factors influence it.
The biggest ones I watch are:
1️⃣ NVDA’s share price
2️⃣ Time remaining until expiration
3️⃣ Implied volatility
4️⃣ Distance from the strike
5️⃣ Supply and demand
6️⃣ Bid/ask spread
This is why I can sometimes sell a put at a relatively high premium and later see the premium drop even though NVDA hasn’t moved dramatically.
If volatility falls or the stock moves in my favour, the option premium can contract.
That creates the opportunity for me to buy it back cheaper.
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🎯 I Am Trying to Scrap, Not Predict Everything
My philosophy is different from someone who buys an option hoping for a massive ten-times return.
I am more interested in small, repeatable movements.
For example:
🐶 Round 1:
Sell $11.30
Buy $11.20
Potential gross profit = $10
🐶 Round 2:
Sell $14.55
Buy $14.45
Potential gross profit = $10
🐶 Round 3:
Sell $18.10
Buy $17.95
Potential gross profit = $15
Individually, these amounts are small.
But this is where compounding the process becomes interesting.
If I can repeatedly capture small premiums without taking excessive risk, the total can become meaningful.
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💰 From $9 to $20
My target is not always exactly $10.
Sometimes the opportunity might only give me $9.
Sometimes I may capture $12.
Sometimes $15.
And occasionally I may capture $20 or more.
I don’t want to force the trade just because I want a certain dollar amount.
That would be dangerous.
Instead, I want the market to give me the opportunity.
My thinking is:
If I can safely scrap $9–$20 and move on, I don’t need to squeeze every last cent out of the option.
This is particularly important with options.
Trying to squeeze the final few cents can sometimes expose me to much larger movements in the underlying stock.
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🧠 Why NVDA Is Interesting for This Strategy
NVDA has very active options.
When a stock has significant trading activity, options can have more opportunities for premium movements.
But high volatility is a double-edged sword.
It creates opportunity.
It also creates risk.
A high option premium may look attractive because I can collect more money.
But the market is charging me more for taking the risk.
Therefore, I don’t simply look at:
“How much premium can I collect?”
I also ask:
“Why is the premium so high?”
Maybe NVDA is moving sharply.
Maybe volatility has increased.
Maybe there is major news coming.
Maybe the market expects a large move.
That is why I must understand what I am selling.
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⚠️ My Biggest Warning: A Put Is Not Free Money
This is the most important part of my strategy.
Selling a put gives me premium immediately.
But I am taking on an obligation.
If the option is exercised or assigned, I may have to buy 100 shares at the strike price.
For example, if I sell a $215 put, I must be comfortable with the possibility of buying 100 NVDA shares at $215.
The premium reduces my effective cost, but it does not eliminate the risk.
If NVDA falls dramatically, my losses can become much larger than the $9–$20 I am trying to collect.
Therefore:
I am not risking $10 to make $10.
The potential downside is much larger.
This is why I must treat premium scrapping as a risk-management strategy, not as guaranteed income.
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🛡️ I Need Cash and Discipline
Because I am selling puts, I need to be prepared for assignment.
If I sell a cash-secured put, I should have enough capital available to fulfil the obligation if assigned.
I cannot simply think:
“I collected $15, so I made $15.”
I need to think about the entire position.
What happens if NVDA drops 10%?
What happens if NVDA drops 20%?
What happens if volatility suddenly doubles?
What happens if the market gaps lower?
What happens if my buyback order does not fill?
Those questions are much more important than the small premium I am trying to collect.
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🔄 Why I Like Closing the Trade Quickly
If I sell a put at $18.10 and can buy it back at $17.95, I may decide that the $0.15 difference is enough.
I don’t necessarily need to wait for $17.00.
I don’t need to capture every possible cent.
My goal is to reduce exposure.
Once I buy back the option, the obligation disappears.
Then I can wait for another opportunity.
This is important because the market can change quickly.
I would rather take a small, controlled gain than become greedy and allow a profitable position to turn into a losing one.
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🐶 Bit by Bit Makes a Good Amount
This is the part I like most about the strategy.
I don’t need every trade to be spectacular.
If I can consistently find reasonable opportunities, the small numbers can add up.
Imagine several completed trades:
$10
+$15
+$12
+$18
+$9
+$20
The individual numbers don’t look huge.
But together:
$84
And that is only an example.
The important lesson is that small gains can accumulate—but small gains do not justify taking unlimited risk.
I have to protect the capital first.
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📉 What Happens If NVDA Moves Against Me?
Suppose I sell the put at $18.10.
Instead of falling to $17.95, the option rises to $20.
Now I am losing money on the mark-to-market value of the short put.
This is where discipline matters.
I cannot simply say:
“I only wanted to make $15.”
The market doesn’t care about my target.
I need to reassess the underlying NVDA price, the strike, the expiration, volatility and my willingness to take assignment.
Sometimes the best decision is to close the trade.
Sometimes I may choose to wait.
Sometimes I may roll the position.
But every decision needs to be based on the risk—not on trying to recover a small $15 loss.
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📌 My Rules for NVDA Premium Scrapping
My strategy can be summarised with several rules.
🟢 Rule 1: I sell only puts I am comfortable owning.
If I don’t want 100 NVDA shares, I shouldn’t sell the put.
🟢 Rule 2: I take small profits.
If the premium falls enough, I can close the position.
🟢 Rule 3: I don’t count unfilled orders as profits.
$18.10 sold and $17.95 submitted is not yet a completed $15 profit.
The buyback must fill.
🟢 Rule 4: I watch liquidity.
A wide bid/ask spread can eat into my small profit.
🟢 Rule 5: I don’t chase.
If the premium moves away from me, I don’t blindly increase my position.
🟢 Rule 6: I respect assignment risk.
A put seller must be prepared to own the shares.
🟢 Rule 7: I protect capital.
The goal is not to make $10 today and lose $1,000 tomorrow.
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🏁 My NVDA Scrapping Philosophy
For me, NVDA option trading is not about trying to predict every candle.
Sometimes I simply want to take advantage of the premium moving in my favour.
I sell higher.
I try to buy lower.
I take the difference.
Maybe it is $9.
Maybe it is $10.
Maybe $15.
Maybe $20.
Then I wait for the next opportunity.
My recent example of selling at $18.10 and queuing a buyback at $17.95 represents exactly what I mean.
If the buyback fills, the gross difference is approximately:
$18.10 − $17.95 = $0.15
$0.15 × 100 = $15
It isn’t a huge amount.
But I don’t need every trade to be huge.
I want to build my results bit by bit.
At the same time, I remind myself that selling puts carries substantially more downside risk than the small premium I am trying to capture.
So my philosophy is:
🐶 Sell carefully.
💰 Scrap the premium.
📉 Buy back cheaper when the opportunity appears.
🛡️ Manage assignment risk.
🚫 Never assume an order is filled until it actually fills.
📊 Protect my capital first.
🔄 Then wait patiently for the next round.
For me, that’s the difference between randomly trading options and having a plan.
Small profits can add up—but only if I survive the big moves.