DailyPlay – Adjusting Trade (NVDA) – January 14, 2025

NVDA Bullish Trade Adjustment

Investment Rationale

It has been a turbulent journey since establishing our position in NVDA. We have sold a few option contracts against the long call that expired worthless, and we now find ourselves holding a straight long call position with only a few days left until expiration. Currently, the position is at a loss. Despite this, we maintain a bullish outlook on NVDA and plan to adjust the position by rolling it out in time while keeping the same strike price. The cost basis, after multiple adjustments, stands at $14.79 net debit. We will continue to update the cost basis as we make further adjustments and will closely monitor the position’s performance.

Original Position:

• Long 1 Jan 17, 2025 $124 Call
• Cost Basis after multiple adjustments is $14.79 Net Debit

Trade Details

Strategy Details

Strategy: Adjustment of a Bullish Long Call

Direction: Resulting in a new Bullish Long Call

Details: Sell to Close 1 Contract Jan 17 $124 Call and Buy to Open 1 Contract Fed 21 $124 Call @ a $3.70 net Debit, or $370 per 1×1 roll ($3.70 x 100). The total Net Debit Paid for rolling this 1 Call contract is $370. This roll establishes a new Long Call Position in NVDA.

Resulting Position after Roll/Adjustment:

• Long 1 Feb 21, 2025, $124 Call
• Based on a $3.70 net debit fill for the one contract, the cost basis would be $14.79 + $3.70, totaling $18.49 per contract or $1,849 ($18.49 x 1 x 100)

Adjusting the Trade

Use the following details to Adjust the NVDA trade on your trading platform.

PLEASE NOTE that these prices above are based on Monday’s closing prices.