rknight52 9:35 am on Wednesday, May 10, 2017
Tags: IRA ( 431 )

NVDA ideas???

Any thoughts on this rocketship? Previous high on Feb 10 of 120.70. This baby looks to be trying to go in orbit today, but can’t see it continuing up this week after already up almost 16% today.
Currently in a BeCS 114/117 for May 12. I’m inclined to wait until at least tomorrow to see if this re-enters the atmosphere. Have been looking for ways to roll, but haven’t decided. Ditch it now, roll it, or wait until tomorrow or Friday? Any ideas @jeffcp66 or @fuzzballl as I know you’ve been in this one (not the same way as I am)?

#ira

Jeff 9:39 am on Wednesday, May 10, 2017

I will be rolling my 115’s today or tomorrow if no pullback
fuzzballl 9:43 am on Wednesday, May 10, 2017

Of course it all depends on your position size and appetite for risk. I keep everything so small I can usually work out of a jam over time. A crazy (or not) roll you could do would be:

Sell the long 117 and roll the short 114 out to Jun 23rd 129 for about even. You still keep the premium from the original sale and continue selling safe weeklies against the Jun 23rd 129.
- rknight52 9:53 am on Wednesday, May 10, 2017
  
  Looking at this but it’s not adding up. Currently short the 114 and long the 117. Can’t seem to get that “even” as you describe it. Can you be a little more specific? It’s not working as you describe it for me. Maybe I’m missing something here.
  - fuzzballl 10:01 am on Wednesday, May 10, 2017
    
    I just glanced at it earlier. Looks like the 117 is about 2.90 now. It was about 3.10 when I looked earlier. You could roll the 114 anywhere you want for a 2.90 debit for an even roll. Looks like maybe Jun 23rd 125 or 126 now.
    
    (I think)…LOL
    
    By even I mean spending the premium received by selling the long 117 and applying it to a debit roll of the 114. You still pocket the original spread premium received. You can then sell weekly puts against the Jun 23rd 125 (126) call.
    - rknight52 10:08 am on Wednesday, May 10, 2017
      
      Thanks.
      - Bobbie 10:25 am on Wednesday, May 10, 2017
        
        I did the 85/120 strangle on NVDA yesterday. so earlier I close the call side for 1.25. I then bought a call on NVDA to cover my loss.
        
        Jeff 10:26 am on Wednesday, May 10, 2017
        
        Beautiful
        
        Bobbie 11:47 am on Wednesday, May 10, 2017
        
        thank you Jeff
hcgdavis 10:07 am on Wednesday, May 10, 2017

I am not the expert at credit spreads, I tend to trade naked which is easier to roll.

If you have the $ buy enough shares to cover the short calls and keep the long calls.

If I am doing the math right you will loose $5.55 on the stock but then you are covered.

You will make 2.55 on the long call so total loss would be 3 minus whatever you took in on the spread. If you want to get back to even then sell some puts to offset the $3 or so.

Hope it helps but some of the other guys may be better at rolling these.

The final option would be to buy some longer dated options ITM, that would lower the total outlay. But that way you could diagonal or calendar it and keep rolling the short options against the long options or stock.
- rknight52 10:11 am on Wednesday, May 10, 2017
  
  This is in an #IRA and can’t trade naked. Took this on as an earnings trade/gamble :), well aware of the risk. The position size is small, so not losing much if I just let it go. Don’t really want to buy the shares. Those are good ideas.
  Right now just thinking I’ll see if it comes back down some before Friday. If not, I’ll probably just take my loss and move on.
  Thanks for the input!
  - fuzzballl 10:15 am on Wednesday, May 10, 2017
    
    Oops sorry…didn’t realize it was an IRA.
    - rknight52 10:18 am on Wednesday, May 10, 2017
      
      Sorry I didn’t mention that in the original post. That’s why I couldn’t figure out your original idea.
      Actually it is part of an Iron Condor. The put spread is a 96/93 so it doesn’t matter now. The call spread is so far in the money that even trying to bring the puts up to an iron butterfly won’t really help to any appreciable degree.
  - Jeff 10:19 am on Wednesday, May 10, 2017
    
    @rknight52 You can roll spreads. Discovering that was the key to losing my fear in trading. If you need some help in looking for a spread roll, let me know.
    - rknight52 10:24 am on Wednesday, May 10, 2017
      
      I’ve been looking at that, but haven’t really found a good one. Rolling up to 120/123 calls for May 19 will put me at about breakeven for the whole IC. That’s a consideration.
      - Jeff 10:26 am on Wednesday, May 10, 2017
        
        What is your position size? Isn’t a loss easier to handle here then messing with it for what could become multiple weeks?
        
        rknight52 10:27 am on Wednesday, May 10, 2017
        
        Position size is small, so the loss is small. I’m probably just gonna sit on it instead of trying to wrestle it around for a few weeks and risk losing more.
        The possibility of loss was in my initial thinking. I usually do better when I stick with my initial plan instead of trying to rescue it later.
        Earnings trades are always a gamble, no matter how safe they look at the onset.
        Thanks, Jeff.
    - hcgdavis 10:33 am on Wednesday, May 10, 2017
      
      I have never been good at rolling spreads, but am watching and learning. Looks like you roll each part of the spread for even or credit instead of trying to trade it as 4 legs. Once you cover the cost of the spread you are even! I am tempted to put on a single option credit ITM so I now it will blow up and see how it plays out rolling like you do.
      
      Thanks!
- fuzzballl 10:13 am on Wednesday, May 10, 2017
  
  There’s also the old saying about the first loss is best loss! I’m kinda hard headed about that though. By staying tiny with many small positions I’m able to maneuver a little. I like the feeling of a trade not being a win or lose proposition. Lots of gray area in there to work. Size matters! 🙂 🙂
  - Addy 10:26 am on Wednesday, May 10, 2017
    
    All night and before opening of the market the IC spread was dancing between 116-117 or so, once the market open it was at 114. This was an opportunity liquidating it with minimal loss. Saying this, I waited then closed it when it hits 115. I think the best thing is watching these earning stocks over night and early morning to give an idea when it opens and get the benefit of minimal loss.
Ramie 10:17 am on Wednesday, May 10, 2017

The stock is at resistance right now–a level (120) it pulled back from 2-3 times in the last few months. If it looks like it’s failing again at 120 then short calls could be the way to go.
hcgdavis 10:20 am on Wednesday, May 10, 2017

ok here is another idea. The June 16 115 calls are going for $7.5-7.6. Roll the 114s to the June 115 for a credit of about a 1.25-1.5 and then buy shares. If it keeps going then you have some room to keep rolling the calls up and only need to cover the spread the get back to even.

Sell the 117s at a profit and as long as you keep track of your total cost basis should be able to recover in a few weeks.
thomberg1201 10:54 am on Wednesday, May 10, 2017

Looks like it will pay an .11 dividend in a couple weeks