As of April 17, 2025, our covered call stock portfolio is valued at $5,841.36, reflecting a strong 11.92% week-over-week gain. However, it remains down -23.42% year-to-date.
Despite ongoing market volatility and macroeconomic headwinds, I’m doubling down on a focused strategy centered around selling covered calls on NVDA stock to stabilize returns and drive long-term growth.
Our average buy price for NVDA stock is $118.22 (using margin), though thanks to premiums collected in previous weeks, our actual break-even price was significantly lower at $107.98.
On April 16, the day before our existing options expiry, I decided to roll up and away this covered call position:
- Bought back the April 17 $105 call for $1.32
- Sold the April 25 $105 call for $2.81
- Premium collected: $1.46 per share
- Break-even: $106.53
This roll gave me more breathing room in case of a bullish move in NVDA while still collecting solid premium. It also incrementally moved me toward my target of owning shares outright, funded by option income.
Currently, these trades are financed through margin, with a total margin debit of -$6,592. While margin adds leverage and increases risk, it also allows for consistent premium capture as we gradually build the portfolio. The objective is straightforward—generate enough options income over the next 12 months to fully own the NVDA position debt-free.
Assuming an average weekly premium of $146, it would take approximately 45.15 weeks to eliminate the margin debt (excluding margin interest). Encouragingly, our debt-to-cash ratio continues to improve week over week.
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