I closed 1 lot(s) $NVDA 20240531 952.5 PUT$ ,The 0.008 Delta Short Put expired worthless as expected. This is the second experiment of selling puts on Nvidia with less than a 1% chance of the stock price reaching the strike. Both contracts were just 2-day positions, keeping the risk short and manageable. It’s important to avoid selling such options during events like earnings announcements or news that could cause significant volatility or movement in the underlying price. Otherwise, this strategy can be relatively safe, provided it is applied to fundamentally strong companies. However, this opportunity is short-lived as Nvidia will undergo a 1-to-10 stock split in the week after. This means there will only be one more trade possible before the stock price adjusted to the $100 level. At that point, trading would require multiple lots—specifically, 10 lots. The small premiums, combined with the commission costs, would make this trading style unviable. Therefore, I will be searching for new stocks to apply this same strategy next.Side | Price | Filled | Realized P&L |
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Buy Close | 0.00 1Lot(s) | +100.00% Closed |
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