I started a small trade in NVIDIA Stock (NVDA) but had to move from selling the $350 to the $387.50 put strike to get close to the goal of earning 70 cents. After the Fed interest rate decision I may be able to sell another 5 puts but for above 70 cents.
NVIDIA Stock (NVDA)
TRADE SUMMARY: Credit Put Spread
Equity: NVIDIA Stock (NVDA)
Approx Price At Entry: $431.60
Expiry: Sep 29 2023
Next Earnings: Oct 25 2023
Potential Profit: $272.00
Potential Return: 1.5%
Approx. Percent of Protection: 10.2%
TRADE DETAILS:
Short Puts: Sold 5 put contracts for Sep 29 2023 expiry at the $387.50 put strike for $0.604 = $302.00
Long Puts: Bought 5 put contracts for Sep 29 2023 expiry at the $350.00 put strike for an average of $0.06 = ($30.00)
Spread Details: This forms a $37.50 credit put spread returning 1.5% earning $272.00 if held to expiry on Sep 29 2023
Buy To Close Early Offer: I am offering $0.25 to start and will reduce that amount as the trade moves toward expiry on Sep 29 2023
TRADE STATS:
Put Strike Sold: $387.50
Potential Profit: $272.00
Potential Return: 1.5%
Credit Put Spread Size $37.50
Approx. Percent Of Protection: 10.2%
Equity Would Have To Fall To Reach Short Put: $44.10
Capital In Use: $18,750.00
No commissions are taken into account in these trades. Remember do your own due diligence as I am not a financial planner or advisor and have no accreditations.
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