To The Moon

How I Trade NVDA by Selling Covered Calls Within a Defined Range

Over the past few weeks, I have been actively managing my NVIDIA (NVDA) position by selling covered calls whenever the price drifts toward the upper end of its short-term range. This strategy allows me to collect steady premiums while maintaining control over my shares. As long as NVDA respects the range I have identified, I am able to repeatedly sell calls, buy them back cheaper, and lock in consistent profits.

Why I Focus on Range Trading With Covered Calls

I prefer selling covered calls because it gives me immediate premium income while still holding onto my NVDA shares for long-term growth. When I identify a price zone where NVDA tends to stall or pull back, I take advantage of that pattern. Selling calls at those levels offers me a high probability of decay in my favour. Even during volatile periods, I feel more in control because the premium cushions price fluctuations.

Over time, this approach allows me to build a steady stream of realised gains without needing to predict exact tops.

My NVDA Trades on December 3rd

On this particular trading day, I executed multiple rounds of selling and buying back covered calls. Every time NVDA approached my upper range, I sold a call. When the contract dropped slightly in value, I bought it back and locked in small but meaningful profits.

Some examples from my sequence include:

• Selling the 185C (Dec 12) at 2.73, then buying it back at 2.66

• Selling again at 2.75, later buying back at 2.70

• Another sale at 2.83, followed by a buyback at 2.70

These trades may seem small individually, but they compound quickly when I repeat the cycle. Each round gives me more premium collected, and each buyback at a lower price reinforces my conviction in trading NVDA’s short-term range.

I also worked with the 180C series, selling at 5.70 and later exiting at 5.60, adding another layer of realised premium to my overall day.

How I Manage My Risk

The foundational strength of this method is that I hold the underlying NVDA shares. Because I own the shares, every call I sell is covered. That reduces the risk of unexpected assignment and prevents unnecessary losses from uncovered positions. Even if NVDA breaks out, I always have the option to roll up or roll out to keep my shares while adjusting the strike and expiry.

I also make sure I do not oversell contracts. My goal is to remain flexible while extracting premium from the short-term movements.

Why This Strategy Works for Me

By treating NVDA as a range-bound ticker during certain periods, I am able to generate consistent income while keeping the core position intact. I do not rely on predicting major breakouts. Instead, I rely on patterns, theta decay, and disciplined execution.

Every round of selling and buying back reinforces my confidence in this method. It suits my style because:

• I prefer controlled, repeatable gains

• I understand the behaviour of NVDA’s short-dated premiums

• I enjoy managing small intraday price efficiencies

• I like earning income without giving up my core shares

This approach keeps me engaged in the market while allowing me to ride NVDA’s long-term trend.

My Long-Term Goal

Over time, I want my NVDA covered call cycle to become a reliable income engine. Every small gain adds up, especially when I execute multiple rounds in a single day. I see covered calls as a way to enhance my holding rather than trade it away. As long as NVDA remains strong and maintains its range, I will continue harvesting premiums and refining my method.

$NVDA 20251212 185.0 CALL$ 

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