Mama Mia! Nvidia's Stock Soars, But Should You Sell Covered Calls? It's-a Me, Mario, with Some Hot Takes!

It's a Me Mario Your Financial Guide!

Wahoo! It's a me Mario and today we're a talking about Nvidia! This stock is bigger than Bowser after a power up reaching an eye watering $3.765 trillion market cap! Some folks asked me about selling covered calls on this bad boy. Now covered calls are like a secret level they let you keep some upside while making extra coins from selling option premiums. But a like any good level you gotta know what you're doing or you'll end up squished!

Neutral to Mildly Bullish: The Perfect Mushroom Kingdom Setup

First things first you gotta ask yourself 'What's a my thesis?' Are you thinking Nvidia will just keep a climbing or is it gonna take a little breather? Selling covered calls is best when you're neutral to *mildly* bullish. Think of it like this: you want the stock to jump high enough to reach the flagpole but not so high it flies off into the endless sky. If it does you might miss out on extra coins. But if you sell covered calls you will get some coins anyway so it's a win win! Wahoo!.

Picking the Right Power Up (Strike Price)

Choosing the right strike price is like picking the right power up! Do you go for the Super Mushroom the Fire Flower or the Invincibility Star? You need to use something called 'delta'—it's a like the magic 8 ball of options! A 25 delta call means there's a 25% chance the stock will be higher than the strike price by the expiration date. You want the stock to appreciate but not go past so you get all the coins without selling your shares. It's all about finding that sweet spot like the perfect jump to reach a hidden block!

Tenor Time: How Long Should Your Adventure Last?

Next up the expiration date or 'tenor'. You want something that gives you a good time decay—that's 'theta' in fancy finance terms—but still lets you manage your position. It's a like setting the timer on a bomb omb! Too short and you miss the boom. Too long and you're stuck holding the bomb! Experts say 30 45 days is the 'just right' zone for risk reward and not getting kaboomed.

Nvidia Specific Considerations: Watch Out for Goombas!

Now Nvidia is a special beast. It's got high 'IV' because of its AI rally. This means bigger premiums but also bigger risks. The stock can move faster than Luigi when he's scared! The 22 27 delta strikes are like dodging Goombas—they give you more room to move. Also watch out for earnings! Nvidia reports in late August and that can cause some major volatility. Selling calls that expire before then is like jumping over a pit of lava—safer for everyone involved!.

Mario's Recommendation: Aug. 1st 167.50s It's a Perfect!

So if I was a picking I'd go with the August 1st 167.50 calls. They're a good balance between making some extra coins and still having room for Nvidia to zoom to the top of the flagpole! They also avoid the earnings date so you don't end up stuck in a warp zone. Just remember this is just my two cents and I'm just a humble plumber. You should a always talk to your own financial advisor before making any big jumps. Yahoo!