Managing a Challenged NFLX Put and NVDA Credit Spread During a Volatile Week
Portfolio Value: $12,322
Weekly Change: -3.44%
YTD Return: +20.61%
Options Premium Collected: $57
Margin Balance: -$2,831
Greetings from Latvia! This week, we skipped the last few days of school in Tbilisi and traveled to Latvia to celebrate the Midsummer Solstice. We spent time with family and friends, enjoyed the traditional festivities, had a few beers, and, most importantly, had an amazing time.
After a short break from the markets, it was time to get back to the portfolio and review what turned out to be a rather challenging week for stocks.
As of June 26, 2026, the portfolio value declined by 3.44% compared to the previous week, ending at $12,322.
In dollar terms, that is a loss of approximately $439, making this officially the worst weekly decline since I started tracking the portfolio 64 weeks ago.
Most of the weakness can be attributed to the challenged NFLX position. Although Netflix represents only a small stock holding in the portfolio, the related options position has required several adjustments over the past few weeks.
Rolling the trade has helped improve the potential purchase price and reduce some downside risk, but mark-to-market losses still weighed heavily on this week’s performance.
The broader market also provided little support. U.S. stocks weakened during the week, and NVIDIA (NVDA), our primary source of weekly options income, also declined sharply, putting additional pressure on the portfolio.
Finally, currency movements added another small headwind. Since the portfolio’s base currency is the euro, exchange rate movements can slightly affect reported performance in U.S. dollar terms.
While no investor enjoys posting their worst week on record, periods like this are part of long-term investing. The focus remains unchanged: manage risk, avoid unnecessary leverage, continue collecting option premium where appropriate, and allow disciplined trade management to work over time.
On a year-to-date basis, the portfolio is still up 20.61%, outperforming both the S&P 500 (+7.45%) and NVIDIA (+6.30%).
I continue comparing the portfolio against NVDA because a significant part of the portfolio remains tied to NVIDIA exposure, both through stock ownership and options strategies.
Rolling NFLX Further Down and Out
During the week, I adjusted both my NFLX and NVDA positions.
As NFLX continued to decline almost every day, I rolled the cash-secured put down and further out in time, lowering the strike to $66 and extending the expiration to June 2027.
The trade has now become a very long-term position, but it also significantly improves the potential acquisition price if I eventually get assigned.
At the moment, NFLX is probably my biggest mistake in the portfolio. What started as a straightforward weekly credit spread has evolved into a long-dated cash-secured put after several defensive rolls.
That said, I am not ready to close the position at a loss. As long as I can continue improving the strike price and collecting additional premium, I am comfortable giving the trade more time to work.
I wrote a full case study about this trade here: How to Roll a Challenged Cash-Secured Put: An NFLX Case Study.
Rolling the NVDA Credit Spread
NVDA also lost momentum during the week, falling back below the $200 level.
Rather than waiting for the position to come under greater pressure, I proactively rolled my 192.5/182.5 bull put credit spread one week forward.
The new position is now:
NVDA Jul 03, 2026 187.5/160 Bull Put Credit Spread
Depending on how the market opens next week, another adjustment may still be necessary. Fortunately, Friday brought some relief, with both NFLX and NVDA recovering part of their weekly losses.
For readers unfamiliar with this strategy, see: Bull Put Spread Strategy: A Complete Beginner’s Guide.
I also explain my adjustment process here: How to Manage a Credit Spread When the Trade Moves Against You.
Current Options Positions
NVDA Jul 03, 2026 187.5/160 Bull Put Credit Spread
LHA FRA Sep 18, 2026 7.6 Cash-Secured Put (EUR)
ARCC Sep 18, 2026 16 Cash-Secured Put
NFLX Jun 17, 2027 66 Cash-Secured Put
NVDA Jun 17, 2027 $125 Covered Call
The portfolio now has fewer active positions than in previous weeks. That is intentional.
With NFLX requiring more capital and attention, I am shifting into a more defensive mode rather than opening additional trades simply to generate more premium.
$57 in Weekly Options Premium
This week’s option premium came from both NVDA and NFLX, generating a total of $57.
With the current margin balance at -$2,831, it would theoretically take about 50 weeks to eliminate the debt at this pace.
Realistically, however, I do not expect to continue generating $50+ in weekly premium over the coming months.
Following the recent market volatility and the challenged NFLX position, I am deliberately shifting into a much more defensive mode. My expectation is that weekly option income may average closer to $30–40, meaning it could take considerably longer to eliminate the remaining margin debt without selling any core stock holdings.
That is acceptable. My priority is no longer maximizing premium, but preserving capital and managing risk.
Chasing higher premiums usually means taking on more risk, and that is exactly what I am trying to avoid right now.
For a broader discussion on realistic premium targets, see: Can You Really Earn $100 Per Week Selling Options?.
Reinvesting Premium Into NVDA
As part of the strategy, I continue reinvesting a portion of the option premium into fractional shares.
This week, I added another 0.1 shares of NVDA, gradually increasing long-term ownership while allowing option income to compound over time.
This remains one of the central ideas behind the portfolio: use options premium not only as short-term income, but also as a tool to gradually build ownership in productive assets.
Looking Ahead
Next week, the primary position to watch is:
NVDA Jul 03, 2026 187.5/160 Bull Put Credit Spread
If the position comes under pressure, the plan remains unchanged:
Roll forward when appropriate
Prefer collecting additional credit
Prioritize portfolio stability over short-term premium targets
The NFLX position will also remain on the watchlist, especially as it has now become a long-term cash-secured put rather than a short-term weekly income trade.
Key Takeaway
This week was a reminder that options income strategies are not risk-free.
Even with defined-risk spreads, cash-secured puts, and careful rolling, portfolio value can still decline sharply when the underlying stocks move against you.
The important question is not whether every trade works immediately. It is whether the portfolio remains manageable when trades become difficult.
For now, I am moving into a more defensive posture: fewer new trades, more focus on existing positions, and a stronger emphasis on capital preservation.
Related Reading
How to Roll a Challenged Cash-Secured Put: An NFLX Case Study
How to Manage a Credit Spread When the Trade Moves Against You
Cash-Secured Puts Explained: A Complete Guide for Income Investors
Bull Put Spread vs Cash-Secured Put: Which Is Better for Small Accounts?
Disclaimer
This trade journal reflects personal portfolio activity and is provided for educational and informational purposes only. It should not be considered investment advice, financial advice, tax advice, or a recommendation to buy or sell any security, option, derivative, or financial instrument. Options trading involves risk and may not be suitable for all investors. Past performance does not guarantee future results.