To The Moon

$NVIDIA Corp(NVDA)$ Options Market Makers Went Crazy This Week

The market makers absolutely crushed the $NVDA$ put options for this week's expiry - the 870, 850, 840 and even 800 strikes all got wiped out. Shockingly, they even killed the 900 calls. I thought the 870 strike was an overly aggressive target earlier in the week, but the market makers actually pulled it off.

A ton of open interest remains for the April monthly options expiring next week. However, the script may be similar to this week's. If the stock price holds in the 880-900 range on Friday like today, the remaining open interest could get obliterated again. Without further ado, I'm selling the $NVDA 20240419 880 PUT$ . If it gaps up or opens flat on Monday, I'll just take profits and re-evaluate positioning based on Monday's open interest data to choose a new weekly strike, potentially the 800 or 850 puts$NVDA 20240419 800.0 PUT$  $NVDA 20240419 850.0 PUT$   (or the 33.33 and 36.5 puts for the $NVDL$ options$NVDL 20240419 33.33 PUT$  $NVDL 20240419 36.5 PUT$ ).

One key point to emphasize: Never be afraid to get assigned shares when selling $NVDA$ puts. For a bull market, leading stock, you must have shares. The stock is the core, options are supplemental. I may trade options weekly, but I hold a sizable $NVDA$ share position, so I aim to sell puts closer to at-the-money strikes. Without shares, just selling puts won't generate enough returns.

For $AAPL$, significant open interest also remains for next week across the 160/170 puts and 180/185 calls. Initial expectations are for a 170-180 trading range, so selling the 165 put ($AAPL 20240419 165.0 PUT$ ) seems relatively safe.

$TSLA$ will likely continue rangebound with heavy open interest at the 170 and 175 strikes. However, unlike $NVDA$, I'm not too keen on getting assigned $TSLA$ shares, so the 160 strike ($TSLA 20240419 160 PUT$ ) is more suitable for a put sell.