AyKing’s Option Playbook: NVDA Wheel Strategy

AyKing
03-06

On 4 Mar, $NVIDIA(NVDA)$ price was moving below one of its support level at $113. Considering that the price is about 34% below the average price by 53 analysts, I have decided to start the wheel strategy on NVDA. Hence, I have set aside $9,500 and did a sell put on NVDA, DTE: 4 Apr 2025, Strike price $95, credit collected $260 (approximately 2.7% for 1 month).

My wheel strategy, which is my main option strategy for long term capital grow.

To me, the wheel strategy is a must know option strategy for investors. I hope the chart above is self-explanatory of the method. Choose the underlying that has fundamentally great business and has demonstrated consistent profits. This strategy is especially useful when market starts to pullback.

So, back to the option contract that I have opened. Again, I will walk through my 3 steps, forming my outlook, taking care of my risk and taking care of my reward.

Forming my outlook:

  • NVDA is considered to be a great company.

  • NVDA one of the magnificent 7 and also dealing with AI related business.

  • I considered the price is currently at a discount, basing on the average target price by 53 analyst. (I am currently learning how to evaluate a company.)

  • So, I am still positive in NVDA for the coming years.

Avg. target price from Tiger Broker’s mobile app.

Taking care of my risk:

  • Since I am buying a great company, to me, the risk of NVDA collapsing is very low and cannot be imagine.

  • I have set aside capital to own 100 shares, so I will not get hit by margin.

Technical analysis for NVDA.

Taking care of my reward:

  • For wheel strategy, I can chill.

  • Price moves above $95, I will keep the premium of $260.

  • Price moves below $95, I’ll get to own 100 shares at a discount. I can start the SELL CALL part.

 

Example of option analysis for Sell Put.

In summary, I had started the wheel strategy on NVDA, with the first move of selling PUT. As a gift to Tiger community, I have shared my wheel strategy method.

Comment below if you have any queries. Feel free to share with me if you have a stock in mind and like to use options for your trades. I may write an article of your stock for discussion and education within this community. 

@ArcherWG @Aqa @CINDYTAN @DeltaDrift @Dan1192 @jace0777 @Kashcash @KL8388 @KSR @SPACE ROCKET @SPOT_ON @Terra Incognita @ZEROHERO @koolgal

Happy investing 😊.

# GTC 2025: Is Nvidia the Secret to Bring the Market Back?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment（7）

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  • Wanderfool
    ·03-11
    TOP
    Buy now
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    • AyKing: 
      Yeah, plant your seed now, harvest them later.
      03-12
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  • JennyChen
    ·03-13
    TOP
    请问avgx卖put车轮策略，可以放哪个执行价位？谢谢
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    • AyKing: 
      Hi, I cannot advise you what to enter. But I can share with you my considerations of selling PUT. I have assessed that 1. the underlying has great business. 2. Cheap 3. I am willing to own 100 shares at the PUT strike price.
      Hope the above helps in your decision.
      03-15 15:51
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  • Terra Incognita
    ·03-07
    Thanks for sharing your very detailed thought process on the wheel strategy on Nvidia.
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  • SPACE ROCKET
    ·03-07
    Awesome! :)
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  • ZEROHERO
    ·03-06
    Good bargain
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