To The Moon

$NVDA 20260828 190.0 PUT$  

NVDA Sell Put — Sometimes the Best Trade Is Simply Letting Time Work

Another NVDA sell put is moving nicely in my favour.

Position: NVDA 28 Aug 2026 $190 PUT — Short

Premium / Cost Price: $5.17

Current Option Price: $0.78

Unrealized P&L: +84.91%

For a short put, the mathematics is straightforward.

I sold the option around $5.17, or approximately $517 premium per contract.

At $0.78, buying it back would cost about $78.

So the unrealized gain is roughly:

($5.17 − $0.78) × 100 = $439 per contract

And:

$4.39 ÷ $5.17 = 84.9%, which matches the figure shown in my Tiger account.

But for me, the more important part isn't the 84.91%. It's why I was comfortable selling the put in the first place.

My approach to sell puts has always been quite simple:

I prefer selling puts on companies I am genuinely prepared to own, at a strike where assignment would still make sense to me.

For this NVDA $190P, collecting $5.17 premium means my theoretical effective entry price if assigned would be approximately:

$190 − $5.17 = $184.83

That's how I look at a sell put.

I'm not just asking:

“How much premium can I collect?”

I'm asking:

“If the market suddenly turns against me and I get assigned, am I comfortable owning the shares at my effective price?”

That difference in mindset matters.

Where the profit actually came from

A sell put can benefit from several factors working together:

1. The underlying stock staying above the strike

The further the stock remains from the $190 strike, all else equal, the less valuable the put tends to become.

2. Time decay

Every day that passes removes some remaining time from the option. As the expiry approaches, that time value eventually disappears.

3. Changes in implied volatility

If volatility falls after entering the trade, option premiums can contract further, benefiting the option seller.

This is why I don't need NVDA to keep rallying aggressively to make money.

Sometimes I simply need the original thesis not to be wrong.

84.91% profit — hold or close?

This is where risk management becomes more important than squeezing out every last dollar.

The option has fallen from $5.17 to $0.78.

That means roughly 85% of the original premium has already been captured, while the remaining potential premium is only about $0.78 per share.

At this stage, I would evaluate whether the remaining reward is worth continuing to carry the position risk.

There is no prize for extracting the final few cents from every contract.

For me, sell-put trading isn't about being right on every market move.

It's about repeatedly finding situations where:

Premium is attractive.

Strike price makes sense.

Assignment is acceptable.

Risk is defined.

And time is working on my side.

The screenshot shows the result.

But the real edge is the process behind it.

Sell premium. Stay disciplined. Let probability and time do the work.