Is Nvidia the Ultimate Income Stock?
Recently, Enrique Abeyta of HX Research sent out a trade idea: sell (write) covered calls on Nvidia (Nasdaq: $NVDA).
The stock was $130. The options’ strike price was $140, with a month to expiry. They cost $4.35 per option when Enrique first wrote about the trade, rising to $8 a day or so later.
Selling these options would have been a great way to make a quick profit on your Nvidia shares. And while the market has moved on, in this video Enrique – who’s literally been a billion-dollar hedge fund manager – discussed the principles of generating income with covered call writing.
You’ll learn which stocks are good candidates for writing covered calls, and which aren’t.
Click here or the image below to watch:
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through BBAE. Please read the options disclosure document titled “Characteristics and Risks of Standardized Options.” Hedging and protective strategies generally involve additional costs and do not assure a profit or guarantee against loss. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.
