Riding the NVIDIA Wave: Options Play

 Today, I'm excited to share a recent win from my options trading playbook. Buckle up as we dive into a day trade that turned out to be quite the rollercoaster ride!

The Setup

On January 24, 2025, I had my eyes set on NVIDIA (NVDA), a stock that's been making waves in the tech world. With AI advancements and chip demand soaring, NVDA has been a hot ticket. I decided to play this momentum with a deep in-the-money call option.Here's the nitty-gritty:

• Option: NVDA $200 Call
• Expiration: January 16, 2026
• Contracts: 1

The Play

9:57 AM ET: Sold 1 contract at $1,438.00
2:10 PM ET: Bought back 1 contract at $1,240.00

The Result

Profit: $198.00
Return on Investment: 15.97%That's right, folks! A cool 15.97% return in just over 4 hours. Not too shabby for a day's work, eh?

Breaking It Down

Now, you might be wondering, "How did you pull this off?" Well, let me spill the beans:

1. Market Timing: I sold the option early in the trading day when optimism was high.
2. Patience: Instead of panicking, I waited for the right moment to buy back.
3. Deep In-The-Money: These options are less volatile, providing some cushion.

The Takeaways

While this trade worked out well, it's crucial to remember a few things:

1. High Stakes: We're talking about options priced over $1,200 each. That's not chump change!
2. Risk Management: Always have an exit strategy. I was prepared for the trade to go south.
3. Market Knowledge: Understanding NVIDIA's position in the tech landscape was key.

Final Thoughts

This trade is a testament to the potential of options trading when done with careful planning and execution. However, remember that with great potential comes great risk. Always do your homework, never risk more than you can afford to lose, and stay humble – the market has a way of teaching even the most seasoned traders new lessons.So, what do you think? Have you had similar experiences with options trading? Any NVIDIA fans out there with insights to share? Drop your thoughts in the comments below!Until next time, happy trading and may your charts always be green! 📈🚀

My $HOOD Adventure: Spinning The Wheel for Profit

 Hey options traders! I'm excited to share my recent experience with "The Wheel" strategy on Robinhood ($HOOD) stock. Let's dive into the details of this thrilling options journey.

The Setup

It all started on January 6, 2025, when I sold a cash-secured put on $HOOD:

I got assigned 100 shares at $41 each. My initial cost basis? $40.50 per share ($41 - $0.50 premium).

The Covered Call Carousel

With shares in hand, I jumped into the covered call game. Here's how it played out:

The Results

After this whirlwind of activity, here's where we stand:

1. Total premium collected: $427 ($50 from put + $377 from calls)
2. New adjusted cost basis: $36.73 per share ($40.50 - $3.77)
3. Potential profit if called away at $42: $5.27 per share or 14.35% return

Key Takeaways

1. Active Management: This strategy kept me on my toes, requiring frequent adjustments.
2. Income Generation: $427 in premiums over just 11 days .
3. Cost Basis Reduction: I effectively lowered my purchase price from $41 to $36.73.
4. Flexibility: I adjusted strike prices based on $HOOD's movements, balancing income and upside potential.

Risks and Considerations

• Capped Upside: If $HOOD skyrockets, my gains are limited to $42 per share.

Conclusion

The Wheel strategy on $HOOD has been an quite a ride, offering consistent income and reducing my cost basis. While it requires active management and comes with its own set of risks, for me, the rewards have been worth it.Remember, this is just my experience. Always do your own research and consider your risk tolerance before diving into options trading.

 Happy trading, and may the odds be ever in your favor!

Tracking My Recent Stock Purchases--#GOOG,NVDA,RGTI

 I've recently made several stock purchases in my individual and Roth IRA accounts. Keeping a detailed log of these transactions is essential for managing my investments effectively. Here’s a breakdown of the stocks I've acquired this January:

Alphabet (GOOG): Betting on the Search Giant

I've always been impressed by Alphabet's dominance in the search engine market and its innovative ventures. This week, I made three separate purchases of GOOG:

1. On January 13, I bought 0.13114 shares at $190.63 per share.
2. On January 14, I made two more purchases: 0.35352 shares at $192.35 and 0.30139 shares at $192.44.

In total, I've invested $151 in GOOG, acquiring 0.78605 shares. The slight price increase over these two days shows the stock's current positive momentum.

NVIDIA (NVDA): Riding the AI Wave

NVIDIA has been at the forefront of the AI revolution, and I wanted to get in on the action. My NVDA purchases were:

1. On January 7, I bought 1.36064 shares at $142.41 per share.
2. On January 10, I added 1.47743 shares at $135.37.
3. On January 14, I made a small additional purchase of 0.07384 shares at $135.42.

My total investment in NVDA stands at $403.77 for 2.91191 shares. The price drop between my first and second purchases allowed me to average down my cost basis.

Rigetti Computing (RGTI): A Quantum Leap

In a slightly more speculative move, I decided to invest in Rigetti Computing, a company at the cutting edge of quantum computing. On January 7, I purchased 8.08758 shares at $17.93 per share, totaling $144.97. This investment was made through my Roth IRA, potentially allowing for tax-free growth.

Reflections on My Strategy

1. Diversification: By investing in three different companies within the tech sector, I'm spreading my risk while still focusing on an industry I believe in.
2. Dollar-Cost Averaging: My multiple purchases of GOOG and NVDA over different days demonstrate a dollar-cost averaging approach, which can help mitigate the impact of market volatility.
3. Long-Term Outlook: These investments are made with a long-term perspective. I'm particularly excited about the potential of AI and quantum computing to shape our future.
4. Fractional Shares: This approach has allowed me to invest in high-priced stocks like GOOG and NVDA without needing to commit to full shares.

As always, it's important to remember that investing carries risks, and past performance doesn't guarantee future results.What are your thoughts on these tech stocks? Are you also exploring fractional share investing?

2024 December Dividends Report

December has consistently been a standout month for dividend growth, reflecting the portfolio's strategic diversification and compounding returns. This December  marked another milestone in dividend growth for the portfolio. With a total of $4,032.19 received, this represents a year-over-year increase of 8.14% and an impressive cumulative growth of 137.49% since 2020.

Surpassing $4,000 in December 2024 marks a pivotal milestone in this portfolio’s journey. This achievement not only reflects steady year-over-year growth but also underscores the compounding effect of strategic investments and reinvestments over the past five years.

Summary of Total December Dividends:

• 2020: $1,697.80

• 2021: $2,881.08

• 2022: $3,201.72

• 2023: $3,728.46

• 2024: $4,032.19

Growth Highlights:

1. Overall Growth: The total December dividends increased by 137.49% from 2020 to 2024, reflecting the portfolio’s strong strategic allocation and reinvestment strategy. This growth is a testament to the compounding returns over time.

2. Year-over-Year Trends:

   • 2020 to 2021: 69.74% increase due to significant additions to high-yield assets.

   • 2021 to 2022: 11.11% increase, showing steady portfolio maturation.

   • 2022 to 2023: 16.42% increase, driven by market recovery and dividend hikes in key stocks.

   • 2023 to 2024: 8.14% increase, highlighting consistent contributions from top-performing sectors and funds despite a more challenging economic environment.

Overview of December 2024 Dividends

In December 2024, several companies stood out with their impressive dividend distributions. Here are the highlights:

Symbol 2024 Dividend
AVGO $53.10
GILD $46.12
LMT $90.21
D $18.11
KTB $4.23
PRU $31.08
SHEL $46.69
ED $47.45
HSY $45.11
SCHD $41.58
FLO $24.75
UL $53.77
TGT $31.67
AGNC $10.28
LYB $46.06
AMGN $63.75
JNJ $69.97
HON $30.58
DFS $136.05
UPS $20.22
AFL $24.59
KR $8.38
WFC $41.64
VMCIX $357.74
HD $89.43
MMM $44.81
ADM $11.76
GILD $40.96
V $15.13
SO $30.82
CVX $51.14
MSFT $13.80
TGT $40.53
O $11.40
KO $15.12
UNP $70.70
TROW $85.68
FXAIX $170.20
Goog $4.00
VOO $9.10
VIIIX $720.00

Achieving the 2024 Goal

2024 was a pivotal year for dividends, with a year-to-date (YTD) dividend total of $19,271.66. The target goal for the year was $19,500. Though it fell short by a small margin, the overall growth reflects a strong investment strategy and disciplined financial management.

Standout Performers

1. Broadcom Inc. (AVGO): Broadcom ended the year with a robust dividend of $53.10, thanks to its continuous innovation and strategic acquisitions in the tech sector.

2. Lockheed Martin (LMT): With a dividend of $90.21, Lockheed Martin solidified its position in the defense industry, buoyed by key contracts and cutting-edge technology.

3. Discover Financial Services (DFS): DFS's significant dividend of $136.05 reflects its strategic expansion and robust financial management, making it a standout in the financial sector.

4. Hershey (HSY): A dividend of $45.11 highlighted Hershey's growth, driven by its innovative product lines and effective marketing strategies.

5. Microsoft (MSFT): Microsoft, a stalwart in the tech industry, issued a reliable dividend of $13.80, underscoring its sustained growth through cloud services and software solutions.

Sector Trends

• Technology: Companies like AVGO and MSFT led the tech sector's dividend growth, driven by ongoing innovation and digital transformation.

• Financial Services: DFS and WFC showed remarkable dividend increases, thanks to their strategic expansions and solid financial health.

• Consumer Goods: HSY and UL were key performers, adapting effectively to market demands and consumer preferences.

• Energy: SHEL and CVX demonstrated strong dividends, supported by global energy demand and strategic investments in renewable energy.

Conclusion

The December 2024 dividends reflect the dynamic and resilient nature of the market across various sectors. While the YTD dividends fell slightly short of the ambitious goal, the overall growth and strong performances are a testament to strategic investments. As we step into 2025, these companies' continued innovation and strategic initiatives will be crucial to watch. Investors can take confidence in the robust performances and look forward to potential opportunities in the coming year.

Feel free to share your thoughts on this analysis or discuss your investment strategies for the future. Happy investing!