My NVDA bull call spread was 9.31% in the red with only 14 days to go till expiry.
music selection: “Hey Man Nice Shot” — Filter
I bought the NVDA 15OCT2021 expiry 225/227.5 bull call spread on 30AUG2021 for 1.2942 per spread (38 spreads). It went well underwater with the recent correction and I decided to hold through today to see if a continuing resolution on the budget passed and how the spread responded. The resolution passed but the stock continued to decline. I sold today for 20 cents a share. The trade was in force for 33 days and lost 4,158 (I recovered 760 that was sure to be lost). That is a 84.5% loss.
I have similar underwater position in LSI that I tried to close today for 11 cents a share. That failed to clear. I will try again on Monday as I am 10.25% below the break even price and unlikely to recover that in 14 days.
I have two other October expiring spreads that are threatened. These are 0.80% and 0.81% below breakeven pricing. With both still above their 50 and 200 day moving averages, I feel like holding a little longer to see if can turn a profit on the month.
Devour your prey raptors!