To The Moon

An overview of institutional covered call rolls for the new week:

$Nvidia (NVDA)$
Sell $NVDA 20241025 142.0 CALL$ 
Buy $NVDA 20241025 148.0 CALL$ 

Institutions closed out the $138 and $145 strikes while opening the $142 and $148 calls. The higher strikes signal continued bullish sentiment on Nvidia this week.

However, there are three call strikes with over 100,000 contracts of open interest expiring this week: $142, $148, and $150. Plus $140 still has 71,000 open after last week's rally attempt.

So while a push through $142 seems manageable, capping gains below that strike like last week could prove challenging for dealers.

Selling the $150 calls ($NVDA 20241025 150.0 CALL$ ) seems lower risk on the call side. For puts, $130 looks appealing but the uptrend makes outright put sales less attractive. I'll wait for a pullback.

Additionally, there were scattered buyers of the Nov 29th $110 calls ($NVDA 20241129 110.0 CALL$ ) for around 10,000 contracts total. The ongoing bullish Nvidia flows are becoming numb at this point.

$Tesla (TSLA)$
Sell $TSLA 20241025 232.5 CALL$ 
Buy $TSLA 20241025 252.5 CALL$ 

Dealers closed the $225 and $237.5 strikes while opening the $232.5 and $252.5 call strikes - a higher range versus last week, likely due to earnings and Tesla's new "Trump stock" status.

The $200-$240 range still seems fair, so similar trades as before: sell the $200 puts ($TSLA 20241025 200.0 PUT$ ). For a wider call spread, the $250 strike ($TSLA 20241025 250.0 CALL$ ) could cap upside.

$Coinbase Global, Inc. (COIN)$
Sell $COIN 20241025 222.5 CALL$ 
Buy $COIN 20241025 240.0 CALL$ 

Coinbase covered calls remain easy to sell short-dated calls on, though $240 is the highest strike to consider for this week.

$MicroStrategy Incorporated (MSTR)$

This one looks messy, but removing the Oct 18th expiry makes it cleaner:

Removing Oct 18th, you can see the dealer opened bullish positions in the $220, $230, $250, and $270 call strikes.

I wish this trader was handling Nvidia instead - with such an aggressive call spread, $150+ on Nvidia this week would be a breeze.

For MSTR, simply selling the highest $270 strike ($MSTR 20241025 270.0 CALL$ ) matches their upside views. The premium looks low but actually translates to over 21% annualized.