A stink bid went through.

music selection: “Kickstart My Heart” — Motley Crue

I like Nvidia (NVDA) right now.  I put in a stink bid on a narrowly in the money bull call spread with Friday expiry.  I did not expect to get filled.  I bought NVDA200522C00335000 for 24.54 a share and simultaneously sold (using a combo order) NVDA200522C00340000 for 21.34 a share.  I have a net debit of 3.20 a share.  The trade will be open about 5 days and enjoys 3.84% downside protection.  Should that not be breached, the full profit of 1.80 a share will be realized.  That is good for 56% or 4,106% annualized.

I will monitor this trade closely.  I’ll exit early if the spread becomes worth less than 2.00 a share or if substantially all of the profit potential can be realized early.

Devour your prey raptors!

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Bonus Trade 4,106% return

Never miss another opportunity to devour prey!

2 thoughts on “Bonus Trade 4,106% return

  • May 19, 2020 at 6:23 pm
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    Looking good so far! What made it a stink bid? Was your price at the boundaries of the bid/ask for these two options? The stock’s movement was in the position’s favor so that wasn’t it.

    Reply
    • May 19, 2020 at 6:48 pm
      Permalink

      It was well outside the bid/ask when I entered the bid. It moved into range later in the day while I wasn’t paying attention.

      Reply

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