To The Moon

$NVDA 20250328 130.0 CALL$ finally sold my NVDA calls, made a little profit but learned a valuable lesson.

I first entered almost 2 weeks ago when NVDA was at 117, then again at 110 and then even lower at 1.06. The NVDA dip ended up lasting longer than I expected and eventhough the price went up to 121 when I tp'ed, the option decay had been so much I only got a little profit.

Option decay meant that me buying earlier would have me needing the stock to go much higher in order to profit, than my entry.

But here's what I should have done.

As soon as my first trade at 117, became red, I should have kept calm and not averaged in, I got advice from a senior trader that NVDA usually goes down in cycles of about 3 days. He also said that when you play long calls that go red, you need to play short calls when the stock dips a lot and take profit when the stock bounces. That way your profit can cover the losses of your long calls.

At one point my long calls fell to the price of 0.60

If I had more money and I bought at that price (when NVDA was at 130) now selling at 2.00 would have been a huge upside.

So that was my mistake, when you have less cash to play with, do not average in so quickly in the hopes of turning around your trade.

Going forward I'm gonna start looking at short calls and wait for a sharp drop and when call prices drop below 1.00, I'll buy one and wait to see if there's further more than 40% price drop before getting another.

If your not taking any lessons from your trading wins and losses, your bound to get burned hard one day.

$NVIDIA(NVDA)$  $Advanced Micro Devices(AMD)$  $Intel(INTC)$  

@CaptainTiger  @TigerTradingNotes  @TigerWire  @Optionspuppy