Covered Calls on ADBE

A stroke of luck hit me with my ADBE shares.  It traded over 35 last week, but closed under 35, leaving me with my 200 shares.  ADBE is up more than $1.00 today and that gave me the opportunity to sell in-the-money (ITM) calls on it.  While ADBE was trading at 35.55, I sold two April 35 covered calls (AEQDG) and received $298.50 after commissions.  $100 of that is ITM which gives me a small safety net should ADBE falter again.

I debated selling the May 37.50 calls, but opted for the shorter term to take in more money now.  Actually, the annualized gain is greater on the nearer term option, unless ADBE breaks 37.50.  Tempted as I was, I am trying to stick to a higher probability trade than wishing and hoping.

That said, I’m letting my 800 shares of NVDA ride a little longer.  It gapped up today and while it’s hitting a ceiling with the 20 week moving average it also opened above and stayed above the 10 week moving average for the first time since February 13th. If NVDA breaks above the 20 day moving average, I could be sitting in the catbird seat with my 800 shares.  Of course, I’m not so blind that I don’t realize it could fall by the same amount tomorrow or even by the end of today.

I’m up more than $3500 for the day at 12:30 pm.  Four more days like this and I’ll be back to where I was three months ago.  Somehow I don’t see it happening like that, but I’m certainly going to stay in the game.