NVDA Cash-Secured Put Idea: How We Kept $120 in 1 Day
A cash-secured put on NVIDIA (NVDA) paid us $120 in 1 day. Here is the exact trade: strike, premium and buyback.
This story was written with the assistance of an AI writing program.
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The trade at a glance:
- $120 kept in 1 day
- $205 strike · Oct 23 expiry
- Sold $1.98 → bought back $0.78
- $1.20 a share × 100 shares
On October 15, we sold the NVIDIA (NVDA) $205 put expiring October 23. We collected $1.98 per share — $198 up front, cash set aside to cover the $205 strike.
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By the morning of October 16, the premium had dropped to $0.78. We bought it back for $78 and closed the trade. $1.98 minus $0.78 is $1.20 a share, times 100, equals $120 kept. One day — opened October 15, closed October 16.
Why buy it back instead of waiting for expiry? The money was already made. Time decay works in your favor when you sell a put — every day the premium shrinks a little, and you can buy it back for less than you sold it for. Here it collapsed fast. Waiting another week for the last $78 would have meant cash tied up for almost nothing extra. We took the profit and moved on.
You don’t have to hold to expiry to win. You just have to buy back for less than you sold for. The sooner that happens, the faster your cash frees up.
The other side matters too. If NVIDIA had dropped below $205, we’d own 100 shares at $205. Not a loss — the deal we signed up for, at a price we’d be fine owning NVIDIA at, with $198 banked. From there we’d sell covered calls and keep the wheel turning. Both outcomes were planned before we put it on.
People picture options income as slow, month-long waits. But when premium decays fast, you can be in and out in a day and keep the cash. That speed lets the strategy compound — one trade closes, next setup gets its turn.
$120 won’t change your life. But it’s $120 for one day on a trade we understood going in, both outcomes planned.
You can see this trade on our public ledger with every other closed trade: Full trade history — GreeksSurge ledger
Learn cash-secured puts step by step — free tutorials plus the free trade ideas we post every day, all in our mobile app. Download it here: GreeksSurge app
GreeksSurge is a financial publisher. Educational only — not financial or legal advice. Options involve risk.
