To The Moon

The covered call overwriters on $Nvidia (NVDA)$ and $Tesla (TSLA)$ rolled their positions.

$Nvidia (NVDA)$
Closing $NVDA 20240913 118.0 CALL$  - 84,400 contracts
Rolling and Selling $NVDA 20240920 113.0 CALL$  - 84,400 contracts

113 seems a bit low compared to last week's highs around 116. I would look to sell the $NVDA 20240920 116.0 CALL$  at the open instead.

There were also two other notable opening call trades:
Selling to Open $NVDA 20240920 116.0 CALL$  - 28,000 contracts
Buying to Open $NVDA 20241018 109.0 CALL$  - 28,000 contracts

Buying $NVDA 20241018 115.0 CALL$  - 10,000 contracts
Selling $NVDA 20241018 122.0 CALL$  - 10,000 contracts

Both of these appear to be bullish call spreads, positioning for Nvidia to trade above $115 by October expiration - a reasonable expectation. However, it diverges from the more defensive index option positioning, so I'll remain sidelined for now.

Overall, Nvidia's options flows on Tuesday looked fairly balanced, with bullish and bearish strikes at reasonable if slightly low levels, $90-100 at the low end. No red flags to disrupt normal trading.

$Tesla (TSLA)$
Closing $TSLA 20240913 242.5 CALL$ 
Rolling and Selling $TSLA 20240920 230.0 CALL$ 

After the overwriters' 215 calls were put to assignment on Thursday, they rolled up to the 242.5 strike - only to see shares crater back to $210 on Friday for a huge loss.

I suspect Elon wasn't too thrilled with the lower strikes and decided to punish the funds this week. They've learned their lesson and aren't daring strikes below $230 this time around.

In my view, the safest overwrite level remains the $TSLA 20240920 240.0 CALL$  which has essentially zero chance of being breached near-term after this selloff.