What a week! Whew!! The high’s, the low’s, the euphoria surrounding the great run of NVDA! Yes, even a veteran such as myself can get caught up in the moment and forget the fundamental rules of the game. The most important being: what goes up, must come down…
THE TOP IS ALWAYS HARD
As they say, stocks rarely give you time to think when they hit the top before they come crashing down. I was too busy Friday morning laughing at the week of gains to realize what was about to happen. Well, that’s not exactly true. I looked at Hillary and said I need to sell it all, but I’m not taking that risk. The risk for NVDA is still to the upside.
Did I sell? Actually, yes. I was smart enough to take my largest gain close to the top. I sold the JAN 145 CALL on NVDA at a nice 70% profit. Did I jump back in too soon? Maybe. Maybe not. I read the chart, watched it revert back to nearly where it opened on Monday morning and I started adding to my JAN 2019 125 CALL’s. Too soon? Maybe…but that happened to be right where it turned around at $142.75 and shot straight back to $151 and some change. That’s a hard pop and obviously a lot of people were waiting on that same spot. I love charts!
I did purchase another two (2) JAN 2019 125 CALL’s before the market closed Friday. I had to sell some other positions to clear them which I didn’t want to do, but I have a plan. I am now 90% into NVDA which is really stupid. However, as I just said, I have a much longer plan…hence the 2019 calls. Everything I do is strategic in nature and always has been. Most think I fly by the seat of my pants, but I put a great deal of thought into everything I do. Especially when it comes to my f’n money! ha!
I do anticipate the selling to continue next week. As I have said many times before I am trying to accumulate a minimum of 1000 shares of NVDA with a cost basis at or below $125.00 per share. I’m trying hard to do it now before we wake up in 2018 and it’s 200+ per share and $125.00 is just a memory. You laugh, but I remember owning it at $87.00 and selling at $120.90 thinking that was just too high. Should have kept those shares! I also should have kept the 500 shares I owned with a cost basis of $105.86. Ugh! Regardless, $200.00 per share is coming. Fight all you want and short it if you must, but it’s going to continue higher.
PLAN TO NOT CARE
Remember the “plan not to care” post a few days ago? This is precisely what I meant. I plan not to care. I have nearly two (2) years to call the shares and I still own DEC and JAN 110 CALL’s for 2017 and 2018 respectively. I’m covered. I need a measly three (3) more calls to hit my goal and I shall have them. Patience.
How do I plan not to care? The strike prices. I own the $110 and $125 strikes on all calls. That’s why I sold the $145 at the top. I didn’t really want to call those shares anyway because that would ruin my cost basis plan. I was up 70% and it was a strike I didn’t like so I dumped them. Now, I don’t care. No matter what I would pay $110 and $125 per share for NVDA no matter what happens so I’m happy. Let it go to $130…still above my strike and in-the-money.
There is some argument towards break even and what I have paid for the calls, but I’m not really worried if you can’t tell.
Will I buy other stuff? Yes. I plan to start funding this portfolio much more heavily in the coming months and I’ll have plenty to invest. It ususally takes me a few months to recover from tax season and I’m almost there. We have a primary savings goal we must meet before I get to really add to my mad money!
This is another aspect of my longer term goal…I know what’s coming on my side as well which makes all the difference.
WHAT I’M WATCHING OR OWN CURRENTLY
American Eagle AEO 11,84 -0,23 -1,91%
Take-Two TTWO 79,25 +1,22 +1,56%
Square, Inc. SQ 26,85 +0,46 +1,74%
Verizon VZ 44,23 +0,01 +0,02%
Mosaic MOS 24,37 -0,06 -0,25%
US Bank USB 52,12 -0,36 -0,69%
Johnson & Johnson JNJ 135,31 -1,26 -0,92%
JP Morgan Chase JPM 90,89 -0,31 -0,34%