First small milestones for this blog. It is the 10th trade I closed. This is also the 10th winning trade in a row.
It has been an interesting trade. When I sold put options in NVIDIA Corporation (NVDA) it was trading for $36 per share on Nov 13. Today when I closed this trade it was trading at $36.68 per share. Essentially a gain of $0.68 per share over 21 days. The percent gain is approx 1.9% over 21 days if I invested in stocks.
However, in this option trade for an investment of $35 per share I was able to generate $0.95 per share. the trading fees were higher for options than trading in stocks. The difference in brokerage fee, however, is not substantial enough to make a difference.
All in all for this trade it was more profitable to invest in options than in stocks. This is something I will analyze going forward. Could lead to some interesting insights.
Overall, I had a gain of $261 (including all brokerage fees) over 21 days. The return on investment is approx 2.48% for the duration of trade (or 43% if annualized).