Selling our NVDA call contracts.
Shares of NVDA traded lower over the last two weeks. While the company continues to be profitable with plenty of demand, the market is punishing the computer chip industry. Higher interest rates continue to pressure growth stocks and I’d prefer to close this position and wait for the dust to settle.
Fortunately, our in-the-money option strategy has helped keep losses manageable with this position. Our contracts still have $17 or so of time premium embedded in the price even though the stock has pulled back close to our $220 strike price.
And at the same time, profits from our LRCX put position have helped to offset the pullback for our NVDA calls.