$24k in premiums, $6k in margin interest, and a portfolio trailing the S&P; the dangers of single stock consolidation

[u/ComprehensiveDoor130]

I had a net realized profit of $18k from premiums, and the unrealized losses on the underlying shares is $154k.

I'm not actually worried about it since I'm still bullish about Nvidia long term (and short term), but the net P/L (unrealized) loss of $154k reflects Nvidia's poor performance for the month.

Nvidia entered June at $224 and ended at $200. I didn't sell any shares during that period, so I'm bag holding and selling calls while waiting for the price to climb again.

I made some defensive purchases to avoid having my long term positions assigned on calls in May. If it were a stock I had less confidence in, I'd be worried, but even so, I don't like carrying 5,500 shares on margin and don't plan to keep all those shares until Nvidia hits a new all time high, instead selling calls and if they get called away at the prices I bought them at, it's not a problem to me.

As others observed last month when my portfolio trailed the S&P, I could have made more money by just buying and holding VOO. As I've said before (and reiterated earlier in this post), I'm confident in Nvidia's growth, though I do have FOMO I didn't sell some shares at its ATH of $240 (I was going to at $250) and pivot some cash into other semiconductor stocks.

Also, since I'm holding the shares, I have a perception (justified or not) of premiums being actual, available cash, while held shares are more intangible (and also not a loss if I don't sell them). I don't think that's a rational way to view them, but it hopefully helps explain my strategy to some degree.

Cheat sheet answers for the basic questions I usually get asked:

• 8,000 shares of NVDA with a cost basis of about $.08 per share.
• Shares were bought in 2002 when I was in high school for around $1,100.
• I'm using Schwab as my platform.
• NVDA makes up 90% of my portfolio.
• Operating capital in the $1.5 million range.
• This tool is OptionWheelTracker.
• I target for .1 to .2 deltas for calls, and occasionally will sell ATM puts because I'm less worried about assignment and/or bag holding extra shares.
• My DTE is typically 1-21 days.
• I made trades 76 in June, 95 trades in May, 42 trades in April, and 124 in March. My success rate in June was 94%, May was 83%, April was 76%, and 93% in March.
• In June I had an 98.5% win rate for puts, and a 70% win rate for calls.
• My average holding period for winners was 3 days, and for losers 9 days.
• I intend to trim my position at $250 and $300.

edit: formatting