Week 11 / Beating the 1% Weekly Goal: How We Collected $101 in Options Premiums
As of June 20, 2025, our covered call stock portfolio stood at $7,194, a small but important +1.68% week-over-week increase (+$119). Year-to-date, we are still down -6.18%.
This week, we collected $101 from selling options, aligning with our goal to generate at least 1% weekly in options premium (1.4% this week).
Our portfolio remains concentrated around NVDA stock. On Friday we successfully closed a put credit spread on NVDA that expired worthless, allowing us to retain the full premium. Continuing our premium collection strategy, we’ve initiated a new credit spread set to expire next week.
Midweek, I decided to take a proactive stance and rolled up and away the June 27, $109 covered call on NVDA. The position was moved to a higher strike price of $110 with a new expiry of August 15. For this adjustment, we received an additional $48 in premium (net of commissions), and there's also potential to realize an extra $100 if NVDA stays above our strike price on expiry.
Our long-term strategy remains unchanged - we aim to hold NVDA in our stock portfolio for as long as possible.
I'm currently holding one covered call on NVDA with a $110 strike price expiring on August 15, which is significantly deep in the money. If we allow the shares to be called away at expiry, this would lock in an unrealized profit of approximately $3,400.
Additionally I opened weekly credit spread on NVDA collecting additional $53 (after commissions)
Current positions
NVDA Jun 27 139/131 Put Credit Spread
NVDA Aug 15, 2025 $109 Covered Call
While our long-term intention is to hold NVDA shares, we utilize weekly put credit spreads to generate additional income. Ideally, we plan to manage the covered call by rolling it out over time, preserving our position while continuing to collect premiums.
One of the primary goals of our covered call stock portfolio is to gradually reduce debt while maintaining a long position of 100 shares in NVDA. Notably, we earned $101 in options premium this week. If we can consistently average that amount, it would take approximately 59 weeks to fully eliminate our margin debt of $5,934.
Looking ahead to next week, I’ll need to closely monitor the NVDA $139 put. If it’s challenged, I may need to either roll it out or consider closing the $110 covered call position.