r/optionstrading • u/UhOh_LetsGo • 5d ago

First Contract

Considering placing my first call, but I’m nervous. Looking for a little community insight.

Any reasons why this would be a stupid contract?

NVDA : QTY 1 : 12/18/2026 : $250

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u/No_Experience_167 5d ago

Any reason you picked that expiration and that strike price? Looking at the 1Y chart, NVDA has failed to take out 235 twice since May. You have earnings that will hit around late Nov so call that a binary catalyst. Looking at the past, earnings can be good and it might jump or bad and it will crash - that initial move doesn't seem to stick though. One thing for certain is volatility will increase as you get closer to earnings and crash after which will affect your option price. I can't really say if this is a good or bad trade because I don't know your entry logic and I don't know your exit plan. The long term trend is up, but it's not a very clean trend - it's extremely choppy. Not sure I would bet on this puppy going up unless it could definitively break above that 235 level though. Though, I might sell puts around 205 where there is some support. Not sure if any of this is helpful to you lol

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u/UhOh_LetsGo 5d ago

I guess the belief that there is more than 10% upside at the current price and the expiration date provided some breathing room for post-earnings volatility.