It has been a while since I shared my Nvidia options trading updates. As many of you know, the U.S. stock market in 2025 has been extremely volatile — sharp highs and lows, rapid reversals, and plenty of uncertainty. For option traders, volatility can be both an opportunity and a source of stress. Premiums get richer, especially on the selling side, but timing becomes much more critical.
Early next year, I will share how my overall trading went in 2025. Today, I want to talk about my most recent Nvidia trade.
Two weeks ago, I sold NVDA put options expiring on 11/28/2025. I prefer selling options around earnings because the premiums are high — though the risk is higher as well. We had a few down days in the stock, so I was able to enter at strike and premium levels that I felt were solid.
Everyone was watching Nvidia’s earnings on Wednesday the 19th, including me. After the bell, Nvidia delivered a strong report and the stock shot up to around $196 in after-hours trading. NASDAQ futures were up more than 2%. I felt confident that Thursday would give me a perfect chance to close my positions at around 70% profit.
But Thursday surprised almost everyone.
NVDA opened strong around $196, then reversed sharply and closed the day at $180. Unfortunately, I overslept that morning (I normally wake up early to trade), so I missed the ideal exit window. My position went from a +70% profit to about breakeven by the close — a real rollercoaster.
Friday was volatile as well: the stock dropped to $172, then rebounded to stabilize near $180. I had opportunities to exit at breakeven, but I chose not to. Instead, I sold additional puts when the price dipped to $172.
Next week will be a short three-day trading week. If NVDA stays around the $180 level, the time decay should work strongly in favor of my open positions. My plan is to hold until Wednesday to either close for a profit or accept assignment.
Key Takeaways From This Trade
- Pre-market tells you something, but not everything. It’s helpful for sentiment, but it cannot be relied on as a guarantee — especially with high-volatility stocks like NVDA.
- I’m strong at entries, but my exit strategy needs more clarity. This experience made me realize I need to define my profit-taking and stop-loss rules more intentionally.
I’ll post an update next week on how these NVDA positions end up closing.
Disclaimer
I am not a financial advisor or a lawyer. The information in this post reflects my personal opinions and experiences and is provided for entertainment and educational purposes only. It should not be interpreted as financial, legal, or investment advice. Always perform your own due diligence before making any financial decisions.