Week 21 - May 22 Investment moves
- US market conditions as of 10:30 am (EST)
- May 22 options trades
- ALLY trade explained
- NVDA trade update
US market conditions as of 10:30 am (EST)
Here are the current markets as of this morning:
May 22 options trades
Here are my options trades as of 10:30 am (EST).
Summary:
- Rolled TDOC covered call up and out for $4.
- Rolled F covered call out two weeks for $4 each.
- Rolled F CashSecuredPut down and out two weeks for $1 each.
- Rolled EA covered call up and out two weeks for $30.
- Rolled Visa PUT credit spread up for more risk for $3 each.
- Buy ALLY at $39.14 a share.
ALLY trade explained
Ally stock is a holding that "JD" (my 16 y/o son) follows and controls. He notice that when a stock is range bound, you can sell it "high" and then buy it back again low. This works better in a tax-deferred account since it will not trigger a taxable event.
The goal is to compound small gains throughout the holding lifetime and create some extra profit. The only risk is when you are wrong on the "peak" and can't get in at a cheaper price.
He should test his theory on a $1K bet (27 or 28 shares of Ally). He will have 40 or 50 years of trading ahead of him and it is best to make mistakes when he's making $1K bets. A lesson can be expensive when you are making 10K bets.
NVDA trade update
Yesterday we added NVDA earning trade using an Iron Condor:
We expect Nvidia to move up or down after the earnings tonight. However, the original trade delta was at 30 on the CALL side, meaning it's very risky and has a high chance of losing a few hundred dollars if Nvidia pops up $40-50 dollars. To reduce some risk, I had to alter the option position and switch from the 1010 short call to the 1050 short call. That moved the delta from 30 to 19. Now it a waiting game. My win condition is that NVDA will not pop up $40 or $50 since the stock already moved this week and it's already "priced" in.