How I Get 12% Returns In 2 Months Using A Conservative Options Strategy (Despite Getting The Direction Wrong)

On 21 March 24, I tried out this options strategy which I thought had a relatively high chance of winning and getting maximum profit.

Trying Out A New Options Strategy | If Nvidia Closes Above USD820 On 26 April 24, I Earn USD3.2k

Nvidia was soaring high back then and was trading around USD 945. I just need Nvidia to close above USD820 in a month’s time (expiration date: 26 April 24) and I would get maximum profit. That means I had 13.2% buffer for a drop in share price.

Correction In April

Nvidia then went through a correction in April and its share price dropped all the way to USD762 on 19 April 24, one week before the expiration date.

I did not want to take the risk of losing my capital so I rolled the contract to 21 June 24 with strike prices of USD750/ USD730, which meant that if Nvidia closed above USD 750 on 21 June 24, I would get my max profit of USD3.2k (10 contracts).

Closing The Trade

The 19th April low point was the lowest it went for the correction and the share price rebounded thereafter. I closed my 10 contracts just before Nvidia reported earnings on 22 May as I did not want to take the risk of Nvidia’s share price plunging after earnings.

My total profit from the 10 contracts was around USD 2.086k. With a capital of USD 16.8k, that translates to a 12.4% gain in 2 months. For folks with a smaller account, they can buy 1 contract instead of 10 contracts and will only need 1.68k per contract.

Concluding Thoughts

This is a strategy that allows you to profit from the bullish momentum of a stock while giving yourself a safety buffer should the share price goes through a mild correction. In the worst case, where the share price corrects more than 20%, you can try to roll them to a later date, to allow the share price time to recover. However, do bear in the mind that you might risk losing your capital because anything can happen in the stock market. So, set your stop loss to protect your capital if you would like to use this strategy.

*** SEE MY TRADES & PORTFOLIO ON PATREON ***

If you are interested to find out more about my options trades and investment portfolio, I will be updating them on Patreon (on the same day I made the trades), so do follow me there if you need some reference or inspiration.

*** EARN FREE MONEY ***

Sign up for WeBull Securities Brokerage and sure-win free shares:
Receive Free Money When You Sign Up With WeBull Securities Platform

*** FREE BEGINNER GUIDE TO OPTIONS TRADING ***

Keen to learn about options trading but do not wish to pay for expensive courses, this newbie guide will help gain the knowledge and fundamentals to understand options better. And it’s totally free!
The Newbie’s Guide To Options Trading

*** FREE MOTIVATIONAL BOOK ***

If earning more money from your investment does not excite you anymore, you may be seeking a purpose that brings fulfillment and meaning in life. I have written a motivational book that may be useful to you in some ways. You can also download a free copy here:
https://learninginvestmentwithjasoncai.com/finding-the-magical-realm-of-happiness-motivational-book

*** FOLLOW US ON SOCIAL MEDIA ***

Follow me on Facebook, LinkedIn, to get notified of my latest posts on social media. Or subscribe to my blog (scroll to the bottom of the page) to have my new posts sent directly to your mailbox.

*** BUY ME A CUP OF COFFEE ***

If my blog has benefited you in some ways and you would like to offer a token of appreciation, you may do so via this page. Thank you very much for your support!

*** MUST-READ BLOG POSTS ***
After accumulating more than 600k of unrealized losses on my portfolio, I wrote this article to encourage friends and investors who are also losing a lot of money to the market.
If You Are Feeling Depressed From Losing Lots Of Money In The Stock Market, Here’s An Article For You

In the 10 years of my investing journey, I have made many mistakes but also learned many lessons from these mistakes. I compiled the 10 most valuable lessons that I have learned and may they help you succeed in your investing journey.
Happy 10 Years Of Investing | 348k (Realised) Profit, 635k (Unrealized) Loss & 10 Lessons Learnt

The precious 6 lessons I learnt after cutting more than half a million of losses in the stock market through bad investments and risky trades.
6 Lessons Learnt After Losing 551k In 10 Years Of Investing & Options Trading | What Newbies Should Know They Start Investing/ Trading

How I managed to build a 1M investment/ trading portfolio despite coming from humble beginnings.
How A Poor Kid Got To A 1M Investment Portfolio | Tips & Principles Of Building Wealth

I did these 10 side hustles while holding a full-time job, so I share them here so you can be inspired to grow your wealth through a side hustle that you enjoy.
I Did These 10 Side Hustles While Working Full Time | 10 Side Hustle Ideas To Help You Earn An Extra Income

Struggling with inflation and high cost of living? Try these 10 methods to help you save money and accumulate more savings for investments or rainy days.
10 Ways To Save Money To Help You Fight Inflation & Rising Costs Of Living

Why I am building $120,000 of cash reserves in Singapore Savings Bonds (SSB) & 5 reasons why I think SSB is a worthy low or zero-risk investment that you can consider.
Why I Am Building $120,000 Of Cash Reserves In Singapore Savings Bonds (SSB)? | 5 Reasons Why SSB Is A Worthy Low-Risk Investment

Sharing why I am doing Dollar Cost Average (DCA) into SPY and QQQ ETF for long-term investments and a step-by-step guide to doing it automatically with Interactive Brokers.
Why I Am Doing DCA (Automatically) For SPY & QQQ For My Long Term Investment? (20% ~ 30% Upside Potential) | Step By Step Guide To Activating Automatic Recurring Investment On IBKR

Can options trading provide you with extra sideline income every month? In this post, I share my experience of generating income from options trading over the last 3 years.
Options Trading For Passive Income: Truth Or Myth?