Week 41 / NVDA Credit Spread Strategy: 0.43% Weekly Return if Expires Worthless
Greetings from Tbilisi. After more than three weeks in India, we are finally back—welcomed by temperatures below 0°C and already missing Goa and its +31°C.
Last week, we also held our annual office party (Caucasus Translations) at Babilo Music Hall, enjoying excellent Georgian cuisine, wine, and traditional Georgian dance. I skipped the food due to intermittent fasting (no eating after 14:00), but it was a great evening nonetheless.
As of January 16, 2026, our covered-call stock portfolio has increased again by additional +1.71% and closed at $10,835.
It has been an excellent start to 2026, and we are positioning for further growth while remaining cautious. A market correction around earnings season cannot be ruled out. With NVDA scheduled to report earnings at the end of February, we are comfortable selling credit spreads, as they provide downside protection.
Our covered call portfolio is up 4.31% YTD, outperforming the S&P 500 (+1.28%). Since NVDA is our core underlying - used for selling credit spreads and covered calls, while gradually accumulating shares through option premiums it is also appropriate to compare performance against NVDA itself. Notably, NVDA is down -0.26% YTD.
Options trades:
At the end of the week, I opened new NVDA bull put credit spread with next week’s expiry Using the premium received, I purchased an additional 0.1 fractional share of NVDA, increasing our total holdings to 101.1 share.
Current positions
NVDA JAN 23, 2026 182.5/172.5 Bull Put Credit Spread
2X BMY JAN 30, 2026 51/47 Bull Put Credit spread
SHELL FEB 20, 2026 29 Cash-Secured Put
NVDA JUNE 18, 2026 $116 Covered Call
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 $78 in options premium this week. If we can consistently average that amount, it would take approximately 52 weeks to fully eliminate our margin debt of $4,087. I’d be quite happy to eliminate this margin debt in 2026 without selling any stock - let’s see how it goes.
Looking ahead to next week, I will be closely monitoring the NVDA $179/169 put spread. Should any of our positions come under pressure, the plan is to roll them forward—ideally for a credit.
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