Channeling Stocks

[JLS]

Market horny over NVDA today

Whalman has it exactly right__ http://tinyurl.com/kawlx76

Yet it's this that made the news and Evercore has it all wrong__ http://tinyurl.com/jvg77xg

And this is what it is really all about__ http://shield.nvidia.com/

Do I have a position in NVDA? I used to. I bought NVDA June Calls on 05/09. I bought them after a good trade on NVDA stock that seemed to last forever. Glad to finally get out of that with a profit. I wanted to continue to participate in any upside but was afraid to own the stock again. So I rushed in and bought Calls with some of the profit from the stock. Right after I did that I realized I made a big mistake: don't ever trade options that expire less than two months out; for like good fruit, options take time to properly ripen. I usually decide to take the medicine: don't undo the mistake; live with it and the lesson will more likely stick.

So today was a gift. As the market opened, the NVDA Calls were way under water and prepared to expire worthless on Friday. As Luck played the game today, NVDA popped on news and I sold the Calls resulting in a 100% profit after expenses. Dumb luck.

Now I'm thinking of setting up a new, more complex, options trade on NVDA that will expire in January, 2014. Thinking there might be something in the stocking from Santa. Anybody want to buy an INVIDIA Shield for Christmas? I'm thinking of buying Calls and paying for them entirely by selling Calls at a higher strike (which would limit the profit unless I roll them forward at a future date) and also selling Puts at a lower strike siting at very solid historical support. Sounds like a good plan. Will ruminate on it for a while.