First ever options trade! - How'd I do?!
I've been getting interested in the stock market lately and decided to finally try an options trade instead of just reading about them.
I bought one NVDA $210 put expiring 9/11 for $4.81, so about $481 total. I honestly wasn't expecting much. A few hours after buying it, I was down around $70 and started getting that "oh shit, I actually have money in this" feeling 😂. Then this morning NVDA dropped and the option jumped up pretty quickly.
I ended up selling at $7.06.
So $481 → $706, for a $225 profit / ~47% return.
Obviously I know one trade doesn't mean I suddenly know what I'm doing. 😂 I'm actually trying to use this as a learning experience rather than immediately throwing more money at options.
I wrote down some notes and a plan for my strategy. My thoughts were that NVDA would drop after earnings and I'd make my money there, but the overall goal was to make a 50% return, so whether that happened then or before, my ultimate goal was to pull out when ~%50 profit was made instead of trying to squeeze as much as possible out of it.
The biggest thing I learned is how much the option price can move even when the stock itself isn't moving that dramatically. Delta, IV, theta, bid/ask, etc. make a lot more sense now that I've actually watched them affect a position.
I'm excited to get into my next position and (hopefully) make some more money and gain experience!
Let me know y'all's thoughts and did I do okay for my first trade?