As of June 6, 2025, our covered call stock portfolio stood at $7,114, reflecting a +1.50% week-over-week increase (+$121). Year-to-date, we are still down -6.57%, as we continue to navigate market volatility while optimizing our options income strategy.
This week, we collected $88 from selling options, aligning with our goal to generate at least 1% weekly in options premium (1.23% this week).
Our portfolio remains concentrated around NVDA stock. We successfully closed a put credit spread on NVDA that expired worthless, allowing us to retain the full premium. Continuing our premium collection strategy, we’ve initiated a new credit spread set to expire next week.
Unfortunately, I rushed a bit. On Thursday, I sold a new credit spread with next week's expiry, which generated a juicy premium. However, shortly after, NVDA's price dipped below $140, putting pressure on the position heading into next week.
This highlights one of the key risks with selling weekly options—they can be lucrative, but they're also quite dangerous due to the limited time to adjust when the underlying moves sharply.
Additionally I'm currently holding one covered call on NVDA with a $109 strike price expiring on June 27, which is now significantly deep in the money. If we allow the shares to be called away at expiry, this would lock in an unrealized profit of approximately $3,200.
Open Positions:
- NVDA 136/130 Put Credit Spread (Weekly)
- NVDA Jun 27, 2025 $109 Covered Call
While our long-term intention is to hold NVDA shares, we utilize weekly put credit spreads to generate additional income. Ideally, we plan to manage the covered call by rolling it out over time, preserving our position while continuing to collect premiums. However, as the June 27 expiry approaches, the opportunity to roll this position easily is diminishing. We're beginning to consider letting it go and re-entering using puts.
That said, the goal is to hold the current covered call for at least a few more weeks before adjusting or rolling it out. Ideally, we’d like to roll it to a significantly higher strike to capture more upside.
One of the primary goals of our covered call stock portfolio is to gradually reduce debt while maintaining a long position of 100 shares in NVDA. Notably, we earned $88 in options premium this week. If we can consistently average that amount, it would take approximately 69 weeks to fully eliminate our margin debt of $6,107.
Looking ahead to next week, I’ll need to closely monitor the NVDA $136 put. If it’s challenged, I may need to either roll it out or consider closing the $109 covered call position.
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