john4419 9:43 am on Thursday, August 2, 2018
Tags: supercharger ( 160 )

$MamaCash Are you sill holding…

$MamaCash

Are you sill holding Supercharger NVDA for 08/17. I’m holding the 240/245 which I bought for 3.35. It just never seems to move into profit! Or am I missing something?

MamaCash 9:46 am on Thursday, August 2, 2018

No, I don’t have that trade anymore. I closed it for 5% loss on 7/27.

I didn’t have the same trade as you. I bot the Aug17 230/240 @ 7.60. Sold @ 7.23 on 7/27.
- john4419 10:03 am on Thursday, August 2, 2018
  
  Appreciate the feedback.
  I’m not sure why it’s still just outside profit considering the stock is $249 +? Must be something I’m missing.
  - Ramie 10:17 am on Thursday, August 2, 2018
    
    It’s because earnings are before options expiration (they’re reporting 8/16 after the bell). The IV is higher because of that and the closer to the money short call (240) has more time value in it than it would if there were no earnings in the cycle. What you’d look for here is a run into earnings (@MamaCash does a great job positioning for pre-earnings runs). If the stock stops here (at 250) and theoretically stayed there for the next 2 weeks my guess is the theta decay would probably still more than offset a further increase of IV into earnings but you never really know. There is currently a 2.55 time value differential between the 230 and 240 calls. I would watch the chart and ride this until you see a waning of momentum and a possible reversal of today’s strong move up. Today’s action is printing a bullish engulfing candle so far. If it slows or reverses you may want to take the small loss.
    - MamaCash 10:29 am on Thursday, August 2, 2018
      
      Once a ticker moves into pre-ER momentum range, 21 days or less before earnings, I don’t do superchargers. I move to long calls if the historical data shows that it’s profitable to do so. I’m long Aug17 260c @ 3.80 since yesterday.
      - john4419 10:32 am on Thursday, August 2, 2018
        
        Wow, that looks to be moving nicely!
    - john4419 10:29 am on Thursday, August 2, 2018
      
      Ramie,
      Really appreciate the detailed explanation, clarifies quite a few points I did not understand. Once again thank you.
- Addy 11:34 am on Thursday, August 2, 2018
  
  I close NVDA today at 7.42. It is not moving
  - MamaCash 12:04 pm on Thursday, August 2, 2018
    
    You can just close the short call and let the long call run into earnings on these. But that’s only if you’re comfortable trading a runup into earnings.
    - Addy 1:00 pm on Thursday, August 2, 2018
      
      I could, but it did not move, better get out and reenter
Jeff 5:38 pm on Thursday, August 2, 2018

John, I still have the 230/240 call spread. It won’t move into profit until close to expiration, or when the stock takes off. Unfortunately the stock hasn’t been moving, but I have not closed because the 240 strike was never breached. The market has been doing its customary 2018 dance again, but NVDA has moved sideways rather than down like many tech stocks have. It is resilient, so I’ve stayed in the trade.

This was a little farther out in time than I like a #SuperCharger to be, but that can be necessary to buy it for a cheap enough price.

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