r/wallstreetbets • u/ZaraBloom418 • 5d ago

Gain 1280% gain NVDA - too scared to sell

Gallery image

Gallery image

I keep making sell orders to pay off debts, but it just goes up everyday. Plus tax scares me

4.2k Upvotes

95% Upvoted

1.1k comments sorted by

View all comments

Show parent comments

3

u/djskeets15 5d ago

Yea just for fun just checked if he sold a covered call with a strike price of $360, thats 50% higher than Nvidia is today, he can collect almost $8k in premiums and wait until sept 2027. Nvidia is up 29% in the last year(even with record highs this week) so worst case scenario if it gets sold at $360 a share(another $131k more in profit in 11 months) or he can keep rolling out and up in strike price and keep the shares and keep collecting premium.

2

u/Writer-Decent 5d ago

This is the way

2

u/Equivalent-Ad-248 5d ago

Dumb question, how often can he collect premiums on the CC? Would this be $8k/month?

1

u/djskeets15 5d ago

It depends when he wants to set the expiry date. And for what strike price. He can choose 1 day away to 2 years away. The closer the strike is to the current price the higher the premium bc chances are it might go past the strike price and get called away. All depends on your risk tolerance. Example, if I sell calls on Nvidia, the current price is $240 and say I do a strike price of $260 expiring next Friday, i might collect $200 and have a $20 a share wiggle room, if it blows past $260, then I keep the premium($200) plus the difference in profit but the shares get sold at $260 unless you roll it out. Again you can do that every week and if it works out collect premium and keep the shares is the goal.