A little while back, I shared some walkthroughs with you on how I do covered calls.
If you missed them, here’s Part 1 using GOOG and here’s Part 2 using PLTR.
And in my FREE Telegram channel (click to join if you’ve not already with us), we’ve been working a covered call trade with SCHW.
I’ve been talking a lot about the covered call strategy because it’s one of the most powerful trading tools ever.
It lets you own a hot stock AND charge someone for the privilege of taking it away from you.
What other strategy lets you own the highest-quality, fastest moving stocks AND collect income on them?
There’s a reason I say that covered calls have made more money for more traders than all other strategies combined.
And there’s a reason that the Chicago Board of Options Exchange, in a letter to the Securities and Exchange Commission, said that using covered calls is a safer strategy that just owning the stock.
But it gets better — Much better.
Because probably the biggest news of the year takes place at the end of this week.
See, NVDA is going to doing a 10-for-1 stock split.
And while most mainstream media outlets are busy focusing on the cheaper stock price…
I’m looking somewhere else entirely.
Because along with NVDA trading at 1/10th of it’s current price, the options are going to drop proportionally as well.
Let’s dig a little deeper.
Take a look at this options chain showing NVDA options expiring July 5th. That’s 30 days from now.
Look at how expensive those options are!
To trade NVDA options today, you would have to spend anywhere from $2,500 to over $13,000 for a single option.
Guess what? Most mom and pops don’t have that kind of cash.
And therefore they’re staying away from trading NVDA options.
But after this weekend, when the NVDA stock split is complete, guess what?
Those NVDA options are going to be a whole lot more affordable for everyday traders.
But I’m NOT talking about going out and buying NVDA options.
Because I believe the best way to play this news is to sell NVDA options.
Me and a group of followers have been doing it with GOOG and it’s a strategy where no one has lost money.
I’ve never had a strategy I could say that about before… But no one in this class has lost money.
And now I’m taking that same winning strategy and applying it to NVDA — one of the hottest stocks in the market right now.
What do you think is going to happen?
It’s like adding jet fuel to a fire.
Things are going to heat up VERY quickly.
If you’re starting to see the MASSIVE possibilities of combining NVDA and covered calls…
I want you to click to register your spot for tomorrow, Thursday, June 6th @ 1pm Eastern for my NVDA Stock Split Summit, where I’ll be sharing all the details of how I plan to execute this strategy.
Join me live and I’ll even answer all your questions right on the air!
Can’t wait to see you there.
Trade well,
Jack Carter
