• 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5

NVIDIA...where do we go from here?

The 1st thing you do is forgive yourself. The 2nd thing you do is take immediate action. The 3rd thing is learn from this and make adjustments to your investment strategy. Regarding 2.): I figure you’ve got a little more than 400 shares. Consider a conservative option strategy doing covered calls. There is no problem with Fidelity approving you for this low tier option status. Then Sell 4 (equates to 400 shares) Call Options on NVDA, Dec 21 maturity at the 165 strike price. At today’s price it would earn you $1,050 per call for a total of $4,200. You get that right away. Can not be taken away. At the Dec 21 maturity, if NVDA closes above $165, the 400 shares are called away. If under, then you keep the shares. If in a taxable account and you have a loss, sell them for tax shelter on passive income. Can not buy back any under 30 days, or it becomes a wash sale and you lose tax deductibility. Regarding 3.)  You should consider limiting any one equity position in your portfolio to no more than 5% of the total portfolio. Especially in stocks and most certainly in NVDA. Another thought is investing in a variety of diversified, low cost, broad index ETFs, in lieu of individual stocks. They will not tank 19% in one day. Not that I’m the sharpest knife in the drawer, but I’m about to post on this discussion board my justification of assembling a portfolio whose equity side is comprised of 17 ETFs.
Assuming that we want to keep the 200 shares and the recovery will be at 190 per @shortthevix. I would do the following option trades:

BTO 2 1/18/2019 170 call for 11.30 each = 2260 debit.
STO 4 1/18/2019 190 call for 4.80 each = 1920 credit.

For a discussion of this strategy see

Forum Jump:

Users browsing this thread: 1 Guest(s)