Rolling Forward 1 NVDA Covered Call for an $83 Weekly Premium
On May 2, 2025, I rolled forward one covered call on NVDA, a position originally opened in early March. The roll moved the expiry to May 9, 2025, and generated an additional $83 in options premium from this trade setup:
Trade Setup:
BTC 1 NVDA MAY 2 '25 107 Call Option @ $7.75
SLD 1 NVDA MAY 9 '25 107 Call Option @ $8.59
What happens next:
NVDA is trading below our strike price of $107 at the expiry date (May 9, 2025) — in this case, the call option will expire worthless. We keep the full premium and continue the strategy by selling more covered calls to lower our cost basis and generate consistent income.
In case NVDA is trading above our strike price of $107, our 100 shares risk getting called away at $107. However, our plan is not to let this stock go yet. If our strike price gets challenged, we will attempt to roll up and out — ideally to a higher strike (e.g., $108–$110) with a later expiry, collecting a credit in the process.
I initially wanted to roll this position up and away, but since it was already deep in the money, doing so would have required either choosing a different expiry or paying down debt. I preferred not to do the latter, as we’re using margin to finance the NVDA trade. One of our main goals is to reduce margin exposure as quickly as possible. That’s why I decided to stick with the same strike and simply collect premium instead.
We aim to hold NVDA for at least a year, both for long-term capital gains treatment and to continue benefiting from high option premiums in this volatile environment.
Break-even: $104.29
Our strategy is grounded in a long-term bullish view on AI-driven technology. NVDA sits at the center of this transformation — from powering LLM training clusters to enabling AI inference at scale across data centers and edge devices. We believe AI adoption is still in the early innings, and companies like NVDA stand to benefit for years to come.
Holding NVDA through the ups and downs allows us to collect premium while positioning for long-term appreciation, a core tenet of our Wheel Strategy approach