How I Managed an NVDA Credit Spread and Added Dividend Stocks: Week 62
Greetings from Dublin!
Over the past week, I traveled to Dublin, Ireland, where I combined family time, sightseeing, and a bit of investing research.
While exploring downtown Dublin with my daughter, I made a few spontaneous additions to our long-term stock portfolio after visits to familiar businesses such as McDonald’s and Papa John’s. These purchases weren’t based on deep analysis but rather on an investing habit I’ve been developing: occasionally turning everyday experiences into opportunities to become a small owner rather than just a customer.
It was a fascinating week in Ireland. While my future wife attended one of the largest localization industry events for networking and professional development, my daughter and I spent our time exploring the city and discovering new places. I also took the opportunity to learn more about the Irish stock market.
Outside of Dublin, one of the highlights of the trip was renting a car at Dublin Airport and driving along Ireland’s Wild Atlantic Way. We stayed in Galway and Doolin, visited the spectacular Cliffs of Moher, and enjoyed some excellent seafood chowder along the coast.
Back to the portfolio.
As of June 12, 2026, the portfolio value increased by +0.99% compared to the previous week, reaching $12,664.
This week, I took a proactive approach to managing our NVIDIA position. As NVDA traded around the $200 level, I felt there was a possibility of further downside, so I decided to roll the bull put credit spread one week forward while lowering the strike prices.
The new position was established at the 192.5/170 strikes. In the process, I significantly widened the spread, increasing the maximum risk but also creating additional room for the trade to work. The adjustment allowed me to collect additional premium while moving the short strike further away from the current stock price.
While widening a spread is not something I do lightly, I viewed it as a reasonable adjustment given the market conditions and my longer-term outlook on NVIDIA. As always, the objective was not to maximize premium, but to improve the probability of the trade expiring successfully while maintaining a manageable level of risk.
Current Options Positions
NVDA Jun 18, 2026 192.5/170 Bull Put Credit Spread
2x BMY Jun 18, 2026 50/46 Bull Put Credit Spread
DBK FRA Jun 19, 2026 24/20 Bull Put Credit Spread (EUR)
NFLX Aug 21, 2026 76 Cash-Secured Put
LHA FRA Sep 18, 2026 7.6 Cash-Secured Put (EUR)
ARCC Sep 18, 2026 16 Cash-Secured Put
NVDA Jun 17, 2027 $125 Covered Call
Most of the short-term premium still comes from credit spreads, especially NVDA. Longer-dated positions such as NFLX, LHA, and ARCC are now acting more like income-generating cash-secured put positions rather than weekly trades.
Reinvesting Premium and Building Long-Term Ownership
Using premium collected this week, I added:
0.1 shares of NVDA
0.1 shares of MCD
0.5 shares of PZZA
As mentioned above, both PZZA and MCD were spontaneous additions to the portfolio, inspired by real-world experiences during our trip to Ireland.
What’s interesting is that all three recent additions to the portfolio are dividend-paying stocks. Combined with NVIDIA’s recently increased annual dividend of approximately $1 per share, our projected annual dividend income has now grown to $181.50.
While that won’t fund an early retirement anytime soon, it’s already becoming meaningful. In fact, $181.50 is enough to pay for a night in a decent hotel somewhere along Ireland’s Wild Atlantic Way.
More importantly, it serves as a reminder that even relatively small and seemingly insignificant additions can accumulate into a meaningful income stream over time. The goal isn’t maximizing dividends today, but gradually building a portfolio capable of generating both income and long-term growth.
Weekly Options Income and Margin Management
This week produced $51 in options premium income.
That’s certainly less than our long-term goal of generating at least $100 per week in options income. However, I’d rather grow the portfolio steadily than take unnecessary risks. After all, blowing up an account is easy; building one takes time.
I do not expect this level of weekly premium to continue every week. For the coming weeks, I do not currently see an easy path to consistently generating more than $100 per week without increasing risk.
This fits the broader reality of small-account options trading. A $100 weekly premium target is possible, but it is not automatic. It depends on portfolio size, market conditions, available setups, and risk management.
I discussed this topic in more detail here: Can You Really Earn $100 Per Week Selling Options?.
Margin Debt Update
Unfortunately, our margin usage increased slightly this week due to the additional purchases of MCD and PZZA shares. For now, I’m comfortable with that.
The current margin balance stands at approximately -$2,980. At a sustained pace of $51 in weekly options premium, it would theoretically take about 58 weeks to eliminate the margin debt entirely.
Of course, that’s only a rough estimate. Premium income varies from week to week, dividend payments help from time to time, and market conditions can change quickly.
Realistically, I’d be very happy to see the margin balance reduced to zero sometime during 2027. The priority remains the same: gradually reducing leverage while continuing to grow the portfolio and generate income in a disciplined manner.
Lessons From This Week
Risk management remains more important than maximizing premium.
Rolling challenged positions can create additional time and flexibility.
Small stock purchases can gradually increase dividend income and portfolio diversification.
Generating consistent options income requires patience and realistic expectations.
Key Position to Watch Next Week
The main position to monitor next week is:
NVDA 192.5/170 Bull Put Spread
If this position comes under pressure, the plan remains unchanged: roll forward whenever possible, ideally for a net credit, while prioritizing portfolio stability over short-term perfection.
I have written more about this trade management process here: How to Manage a Credit Spread When the Trade Moves Against You.
Key Takeaway
This week highlighted an important lesson for income-focused investors: portfolio growth does not always come from collecting the largest premium possible.
Instead, progress often comes from a combination of disciplined trade management, gradual share accumulation, and a willingness to prioritize long-term portfolio health over short-term returns.
While premium income was lower than average, the portfolio continued moving forward through dividend growth, new investments, and proactive risk management.