NVDA is very cheap and already a bargain at $200 a share, with the stock at $234; I sold two 195-strike puts for premium, expect not to be assigned, and already hold a lot of NVDA.

I sold an Nvidia put option with a strike price of 195 and I am currently up $1,540 on that position. Nvidia is trading at $234 per share.

This 195 put is very far from the current price of Nvidia. Well, in fact, I want to buy Nvidia for 195. Now I don't really see Nvidia dropping to 195, so I'm using this as an income strategy where I collect premiums and probably won't be allocated.

I already have a lot of Nvidia in my personal retirement account, so I am fine with not being allocated. So, if we look at this option here, you see that it is $11.65 per contract.

I sold two contracts, so that brings my effective average cost price for Nvidia down to $ 183.35.

So, in my opinion, this is very cheap for Nvidia. I think Nvidia is already a bargain at $200 per share .

Suppose it was Nvidia, Nvidia was at 250, now it is at 210, and you want to sell a covered call. Well, you probably wouldn't want to sell a call option at 220 because the stock was at 250, and suppose your average costs, you know, are 250.

I am making up an example, of course, but if your average costs are much higher, you probably don't want to sell covered calls below your average purchase price.

If you look at some stocks, like Nvidia, that had very good implied volatility. Tesla too. And those stocks contributed enormously to my seven-figure profits and building a seven-figure portfolio.

The first one, AMD. A very solid semiconductor company with good volatility. That is a pretty good stock selection, because AMD is riding the wave behind Nvidia, right? It is chasing Nvidia.

Nvidia is the market leader in AI, and AMD is trying to gain some market share behind that, but is also capturing its own piece of the pie. So that's good. The premiums are really decent and the company is very good, right?

Nvidia is okay.

But that does n't actually happen, unless it 's Nvidia or Amazon and you held them before the rise. And then yes, with covered calls you would eventually, you know, sort of lose money.