This week played out just as anticipated — full of movement with the Fed meeting, major earnings releases, and market catalysts triggering volatility.
We entered the week with an open bear call spread on NVDA, expecting the stock to stall or pull back. Instead, NVDA quickly surged higher, testing the strength of our position and forcing a decision.
Early Week Pressure
By Tuesday morning, NVDA hit $179 — faster than expected. I was still holding the bear call spread, but began questioning whether this was the optimal setup. The market felt extended, and volatility was likely to increase with all the scheduled events. This was not the environment to be a seller of premium.
I missed the first opportunity to adjust on the pullback, but stayed prepared. My plan was to shift into a net debit position and become a buyer of puts if NVDA rallied again.
Midweek Adjustment
On Wednesday, the market rose again, giving me the green light to execute my adjustment. I closed out the NVDA credit spread for a realized loss of $1,037 and shifted into a long put position, purchasing $170 November puts.
This was the turning point of the week.
Blowout Earnings + Market Reaction
That evening, META and MSFT both posted strong earnings. NVDA crossed over $180 early Thursday — but I remained confident in the longer-dated put position.
Rather than chase the upside, I added to my puts and sprinkled in a few light calls to hedge in case the market continued to drift higher.
Then came the reversal.
Thursday & Friday Sell-Off = $1,804 in Daily Profits
By Thursday afternoon, NVDA began to fade. Our positions moved green. On Friday, a strong sell-off hit and I closed out all open trades — locking in a $1,804 gain on the day, turning the week into a strong winner despite the early loss.
Looking Ahead
With more volatility expected in August, I set up a straddle in NVDA using the 8/15 expiration:
- Long $170 puts
- Long $175 calls
This gives us room to profit whether NVDA moves sharply up or down.
Key Takeaway
- I didn’t panic when the market moved against me — I adjusted.
- When volatility increases, small accounts have the agility to pivot quickly.
- I accepted that I was on the wrong side, cut the loss, and repositioned for success.
- July closed with a solid win — not because everything went right, but because I stayed flexible and embraced market risk responsibly.