$NVDA 20261113 215.0 CALL$ 🐱 Blink Fans | Why I Sold My NVDA Covered Call and Quickly Bought It Back – Making US$8 in a Short Time!

🐱 My options strategy: Sell high, buy back lower and capture the difference

Sometimes I don’t need to hold an options contract until expiration to make a profit.

My latest NVIDIA (NVDA) trade is a good example of how I use covered calls to collect option premiums and take profits when an opportunity appears.

I initially sold one NVDA US$215 call option at US$2.04 and subsequently bought it back at US$1.95.

The difference was US$0.09 per share. Since one options contract represents 100 shares, my gross profit was approximately US$9. After transaction costs, my net profit was around US$8.

It may not sound like a huge amount, but I like this strategy because I don’t always need to wait weeks for an option to expire. If the premium falls quickly, I can close the position, realise the profit and look for another opportunity.

My objective is to generate small, repeatable profits while managing my risk.

1️⃣ Why am I making this trade now?

📈 1. Why I initially sold the NVDA US$215 covered call

NVIDIA remains one of the most important companies in the artificial intelligence industry.

Its GPUs are essential for AI training, data centres and high-performance computing. With major technology companies continuing to invest in AI infrastructure, I remain interested in NVIDIA’s long-term business prospects.

However, being bullish on NVIDIA does not mean I expect its share price to rise every day.

After a strong rally, stocks can experience consolidation, profit-taking and short-term volatility.

Rather than simply holding my shares and waiting, I prefer to use covered calls when I am comfortable with the strike price.

My initial trade was:

* Stock: NVDA

* Strategy: Sell call

* Strike price: US$215

* Expiration: 13 November 2026

* Contracts: 1

* Selling premium: US$2.04

* Gross premium collected: US$204

Assuming I own 100 NVDA shares, this is a covered-call position.

I receive the option premium upfront in exchange for agreeing to sell my shares at US$215 if assigned.

💰 2. Why I quickly bought back at US$1.95

This is where I decided to take profit.

After selling the call at US$2.04, I noticed that the option premium had fallen to US$1.95.

Instead of waiting until expiration, I decided to buy back the contract.

My calculation was:

Transaction Amount

Sell to open US$2.04

Buy to close US$1.95

Difference US$0.09

Contract multiplier 100

Gross profit US$9

Approximate net profit US$8

I am happy to take a small profit when the opportunity presents itself.

I don’t need to squeeze every last cent out of an option contract.

By closing the position early, I also remove the obligation associated with that particular short call.

I can now decide whether to sell another covered call at a different strike price or wait for a better opportunity.

🐱 3. Why I don’t always wait until expiration

One thing I have learned from trading options is that profits on paper are not necessarily profits realised.

If I sell a call and the premium drops, I have an opportunity to buy it back cheaper.

For example, if I sell an option for US$2.04 and later buy it back for US$1.50, I capture a US$54 gross profit per contract.

I don’t necessarily need to wait until the final day.

Of course, there is a risk that the option premium could increase instead. That is why I prefer to monitor the position and have an exit plan.

My philosophy is simple: when the market gives me an opportunity to lock in a reasonable profit, I am willing to take it.

🎯 4. Why I like NVIDIA for covered calls

NVIDIA has an actively traded options market, which can provide opportunities to manage positions.

Its share price can move significantly because of:

* AI infrastructure spending.

* Data-centre demand.

* Semiconductor industry developments.

* Earnings announcements.

* Interest-rate expectations.

* Overall technology market sentiment.

These factors can affect implied volatility and option premiums.

When volatility is elevated, option premiums may become more attractive, although higher premiums also reflect higher perceived risk.

I am interested in selling calls when I have shares I am comfortable holding and a strike price at which I am willing to sell.

I am not trying to predict every movement in NVIDIA. I am trying to manage my existing position more actively.