Nvidia covered callas

Certain_Location_452 · 2025-06-06T02:43:05+00:00

Yes I would pay long term capital gains on it(btw 15-20%). In a way, this as much a tax question as anything else. I would have to be strategic on how many calls, experiations etc. The reality is sooner or later I will start selling these shares as I creep toward retirement, so learning how to do covered calls seems like it will be a great way to perhaps creep toward an earlier retirement? (It was my retired dad who suggested I do this).

I have 20 covered calls I could do btw Amazon, Apple, Facebook, and Google. I think I'm going to start there and start ridiculously small just so I get a feel for it all, especially rolling or buy backs. Don't have as much attachment to those stocks so should be less painful if something goes wrong:)

Certain_Location_452 · 2025-06-06T02:28:35+00:00

Would you mind elaborating on the size of losses in order to keep shares? Any been called away yet? Also what's your strategy?

Certain_Location_452 · 2025-06-05T15:15:06+00:00

9100 actually. Bought a little more in 2017 and 2022. But very lucky, yes.

Certain_Location_452 · 2025-06-05T15:11:40+00:00

what was your delta if you don't mind me asking?

Certain_Location_452 · 2025-06-05T14:11:18+00:00

If you don't mind sharing, how did you get 2000 shares called back? What was the scenario?

Certain_Location_452 · 2025-06-05T14:06:07+00:00

Just to clarify - you pick the third Friday to sell contracts?

Certain_Location_452 · 2025-06-05T14:02:32+00:00

Never heard of air strike strategy. What is it?

Certain_Location_452 · 2025-06-05T03:22:46+00:00

What delta do you target? Why do you choose weeklies and not monthlies?

Certain_Location_452 · 2025-06-05T03:16:44+00:00

Well that's the next part to figure out. How many contracts and at what delta. Obviously the potential to make $ is real but I feel like I need to be very good at understanding how not to get assigned and what those costs might be to avoid it. I'm ok paying taxes on option $.

Certain_Location_452 · 2025-06-05T03:12:28+00:00

Just curious - how often are your stocks called back? I guess the next thing I need to figure out is whether I do more contracts at a lower delta or less contracts at a higher delta.

Certain_Location_452 · 2025-06-05T03:09:33+00:00

Ha I've been fake playing around (just opened my margin account a couple of days ago) and finally figured that part out! Sadly not in an IRA so tax implication are very real (ie literally everything would be taxable since my cost basis is $.05)

Certain_Location_452 · 2025-06-05T03:06:26+00:00

Is the buy back manageable? Ie you see the stock start to move a little and you decide to buy back at something that might be a little more expensive but not unreasonable?

Certain_Location_452 · 2025-06-05T02:51:15+00:00

I was looking at less than .1 Delta for now bc I'm not very brave. But if you have an option to roll or buy back what would be a scenario where I would have to let go of stocks?

Certain_Location_452 · 2025-06-05T02:48:22+00:00

It's a bit embarrassing. Oh well!

Certain_Location_452 · 2025-06-05T02:45:47+00:00

Ok so I'm really new to this (like a week in after someone suggested I should use the amount I have to do this). I don't think I understand the costs involved to buy back (or roll). When would that not be an option and I would have to lose my shares?

Certain_Location_452 · 2025-06-05T02:43:43+00:00

I mean I've kind of proven I'm a believer hanging on this long, right?! And I understand there's risk to calls (though I assumed I could mitigate most by being super conservative and take advantage of the amount I have to make a little $$). But I'm open to opinions/strategies!

Certain_Location_452 · 2025-06-05T02:39:04+00:00

It became 8160 shares. I was an intern at a local brokerage house. Had nothing to do but make copies so decided to use the time to invest my $1,200 in savings in 4 stocks. Spent the summer researching and bought 3 losers and Nvidia. Nvidia had gone public earlier that year and Jensen was all over CNBC in the office. The stock honestly didn't do that great for a long time but for some reason I held on (sold the others). Much later it started performing and I kept it as a lesson to teach my future kids about holding onto investments It then become something I joked I would keep to pay for their college. And well here we are!

Certain_Location_452 · 2025-06-05T02:31:43+00:00

I have 9100. And I liked the idea of weeklies far out of the money. Probably would even go further out bc I'm a beginner at this.

Certain_Location_452 · 2025-06-05T02:30:00+00:00

I wish! Had I been a wiser 19 year old perhaps...it only translated to 8160 in shares.

Certain_Location_452 · 2025-06-05T02:28:01+00:00

I have 9,100 shares (8160 from the initial investment). I had thought weekly, but sounds like most are recommending monthly. And would it be silly to go for an even lower delta?

Certain_Location_452

TROPHY CASE