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On 4 Mar, $NVIDIA(NVDA)$ price was moving below one of its support level at $113. Considering that the price is about 34% below the average price by 53 analysts, I have decided to start the wheel strategy on NVDA. Hence, I have set aside $9,500 and did a sell put on NVDA, DTE: 4 Apr 2025, Strike price $95, credit collected $260 (approximately 2.7% for 1 month).

My wheel strategy, which is my main option strategy for long term capital grow.

To me, the wheel strategy is a must know option strategy for investors. I hope the chart above is self-explanatory of the method. Choose the underlying that has fundamentally great business and has demonstrated consistent profits. This strategy is especially useful when market starts to pullback.

So, back to the option contract that I have opened. Again, I will walk through my 3 steps, forming my outlook, taking care of my risk and taking care of my reward.

Forming my outlook:

• NVDA is considered to be a great company.

• NVDA one of the magnificent 7 and also dealing with AI related business.

• I considered the price is currently at a discount, basing on the average target price by 53 analyst. (I am currently learning how to evaluate a company.)

• So, I am still positive in NVDA for the coming years.

Avg. target price from Tiger Broker’s mobile app.

Taking care of my risk:

• Since I am buying a great company, to me, the risk of NVDA collapsing is very low and cannot be imagine.

• I have set aside capital to own 100 shares, so I will not get hit by margin.

Technical analysis for NVDA.

Taking care of my reward:

• For wheel strategy, I can chill.

• Price moves above $95, I will keep the premium of $260.

• Price moves below $95, I’ll get to own 100 shares at a discount. I can start the SELL CALL part.

Example of option analysis for Sell Put.

In summary, I had started the wheel strategy on NVDA, with the first move of selling PUT. As a gift to Tiger community, I have shared my wheel strategy method.

Comment below if you have any queries. Feel free to share with me if you have a stock in mind and like to use options for your trades. I may write an article of your stock for discussion and education within this community. 

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Happy investing 😊.