Hey Traders,
This past week we had ourselves a smooth one. No drama. No stress. Just a textbook trade that did exactly what we wanted it to.
Let’s break it down.
The Setup
As usual, we got into the trade on Tuesday and let it run through Frida — pretty standard for this weekly trade I place.
This time, we used NVDA as our underlying stock. NVDA had been in a mild bullish trend, inching upward with some strength behind it.
Now, lately in this program, we’ve been using bear call spreads — a strategy where we’re betting the stock won’t go too high too fast.
But the beauty of this system is, it’s flexible. Whether the market’s going up, down, or sideways, there’s always a way to use it.
And this week, with markets showing more bullish moves, and NVDA showing a little pop, we shifted to a bull put spread instead.
Trade Mechanics (Plain and Simple)
Here’s what we did:
- Sold the $122 put
- Bought the $121 put
This setup gives us two advantages:
Selling a put that’s closer to the current stock price (in this case, the $122 put) brings in more premium — that’s our income.
And buying a put one dollar lower ($121) acts as insurance in case the stock drops. It basically limits out loss if the trade moves too much against us.
The difference between the two strikes is $1, so this is what we call a $1-wide spread.
If we collected a $0.10 credit on a $1 wide spread, that’s a 10% return on risk. If we collected $0.05, that’s 5% — and that’s right in the sweet spot for us: quick, safe, repeatable gains.
The Trip Wire
We always plan ahead. If NVDA had dropped hard and approached our $122 put, we had a trip wire — a point at which we’d take action.
And if that happened, I’d give you one of our three pre-set exit strategies to protect the trade.
But guess what?
It never came to that.
The Outcome
NVDA didn’t even blink. It moved higher on Tuesday and chopped around all week, but it never pushed lower to threaten our trade.
Which is exactly what we want in a trade like this.
The options expired worthless. That means we kept the full premium. No adjustments. No drama. Just a clean win.
Why This Works
This is how this weekly trade is supposed to work:
✅ Simple setup
✅ Defined risk
✅ Fast results
✅ High probability
Every week, we let the odds work in our favor — and this week they did, just like they’re supposed to.
Stay tuned. I’ve got another one coming your way real soon.
Trade well,
Jack Carter
P.S. Did you miss it? I spotted some massive, hidden “Big Money” orders on TSLA — and here’s how I’m playing it.