This week has been action-packed with a series of covered call and roll trades designed to harvest premium income while managing risk across some high-quality names in my portfolio. Below is a breakdown of each trade and the thinking behind them.

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🎯 1. TSLQ Covered Call – $25 Strike (Exp: 6/20/2025)

• Premium Collected: $41.96

• Cost Basis: $22.80

• Max Profit If Called: $261.96

• Status: Open

Why this trade?
TSLQ has been range-bound, and with a $25 call expiring next year, the premium allows for strong yield on cost. The long duration gives room to manage or roll profitably later.

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💊 2. UNH Covered Call – $312.5 Strike (Exp: 6/6/2025)

• Premium Collected: $500.00

• Cost Basis: $302.50 (assigned from recent put)

• Max Profit If Called: $1,500.00

• Status: Open

Trade rationale:
After being assigned UNH at $302.50 from a cash-secured put, I turned around and sold a $312.5 call. This locked in instant income and leaves a comfortable upside. Great play on a stable healthcare name.

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🧑‍💻 3. HOOD Call Roll – $55 Strike (Exp: 6/20/2024)

• Premium Collected: $0.45 (roll credit)

• Status: Open

Trade insight:
This was a roll-up and out of the 6/6 call. The small net credit of $45 extends my exposure for more upside while allowing me to manage assignment risk closer to expiry.

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🔥 4. RDDT Covered Call – $125 Strike (Exp: 6/13/2024)

• Premium Collected: $165.00

• Status: Open

Why RDDT?
High IV made this short-dated trade attractive. The $125 call sits nicely above current levels and pays handsomely in the short term. This is a volatility-income play with minimal downside exposure.

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🤖 5. NVDA Call Roll – $125 Strike (New Exp: 9/19/2025)

• Buy Back (Old Call): $17.17 (Aug 15th expiry)

• Sell New Call: $20.15 (Sep 19th expiry)

• Roll Credit: $2.98

• Status: Open

Rationale:
Rolling NVDA out to capture more time value and take advantage of long-dated call premium. The net credit of nearly $300 locks in value while I continue holding the position. NVDA remains a premium collector’s dream.

Covered calls continue to be a core part of my strategy—harvesting steady income while maintaining ownership of strong underlying assets. Rolling positions like NVDA and HOOD helps manage assignment and take advantage of volatility spikes.

With over $950+ in premiums collected this week alone, this approach keeps compounding while giving me flexibility to adjust as market conditions evolve.

OPTIONS Trading : TEM,RDDT,HOOD

 As an active options trader, I recently executed a series of trades.

On February 11, 2025, at 10:58 AM ET, I sold 1 contract of RDDT $200.00 Put expiring on 2/14 for an impressive $820.00 per contract. This trade reflects my bullish outlook on Reddit's stock performance in the short term. The high premium collected suggests significant market volatility and investor interest in RDDT options.

To finance the RDDT put sale, I strategically closed two previously opened positions:

1. Robinhood (HOOD) Put Purchase:
   On February 11, 2025, at 10:51 AM ET, I bought back 1 contract of HOOD $44.00 Put expiring on 2/14 for $19.00 per contract. This decision was likely influenced by HOOD's recent price movements, with the stock closing at $55.86 on February 7, 2025, showing a 5.06% increase28.
2. Tempus AI (TEM) Put Transactions:
   • On February 10, 2025, at 10:23 AM ET, I sold 1 contract of TEM $60.00 Put expiring on 2/21 for $131.00 per contract.
   • The following day, February 11, 2025, at 10:52 AM ET, I bought back the same TEM put for $23.00 per contract.

This quick turnaround on the TEM put resulted in a profit of $108 per contract ($131 - $23), showcasing the potential for rapid gains in options trading when market conditions align favorably.

The options market has been particularly active, with the r/stocks subreddit hosting daily discussions on options trading17. The current market sentiment appears to be cautiously optimistic, with the Fear & Greed Index showing a reading of 39 (Fear) for HOOD stock4.

By closing out the HOOD and TEM put positions, I effectively reduced my exposure to potential downside risks in these stocks. This allowed me to reallocate capital towards the more lucrative RDDT put sale, demonstrating the importance of portfolio rebalancing and risk management in options trading.

Conclusion

These trades highlight the dynamic nature of options trading and the importance of staying informed about market trends and individual stock performances. By carefully timing entries and exits and balancing bullish and bearish positions, it's possible to create opportunities for profit while managing overall portfolio risk.

Options Trading Recap: SOUN and HOOD Trades

 On January 6, 2025, I executed three options trades involving SoundHound AI Inc. (SOUN) and Robinhood Markets Inc. (HOOD). Let's break down these trades and their outcomes.

SoundHound AI (SOUN) Trades

1. SOUN $24 Call (Expiration: 1/10/2025)

• Action: Sold call option
• Premium received: $96
• Outcome: Expired worthless, full premium captured

This trade worked out in my favor. The call option expired out of the money, allowing me to keep the entire premium without any obligation. This call was based on my previous put assignment 

2. SOUN $21 Put (Expiration: 1/10/2025)

• Action: Sold put option
• Premium received: $80
• Outcome: Assigned at $21, with share price at $14.09

This trade didn't go as planned. The significant drop in SOUN's share price led to assignment, resulting in a substantial loss. The total loss on this trade, accounting for the premium received, was $611.

Robinhood Markets (HOOD) Trade

3. HOOD $41 Put (Expiration: 1/10/2025)

• Action: Sold put option
• Premium received: $50
• Outcome: Assigned at $41, with share price at $40.08

This trade also resulted in assignment, but with a much smaller loss. After accounting for the premium received, the net loss on this trade was $42.This is one i was hoping to capture at lower prices.

Trade Analysis

My total premium income from these trades was $226. However, the losses from the assigned puts outweighed this income, resulting in a net loss of $427.The SOUN call option strategy worked well, but the put options on both SOUN and HOOD exposed me to downside risk that materialized. The significant drop in SOUN's share price was particularly impactful.

Looking Forward

As I move forward, it's crucial to reassess my risk management strategies, especially when selling put options on volatile stocks like SOUN. Recent news suggests that SOUN has been experiencing significant price movements, with a 63.12% increase in just one week prior to my trades. This volatility, while potentially profitable, also carries substantial risk.Additionally, insider selling activity at SOUN might be a signal to watch closely in future trades. As always, thorough research and careful consideration of market conditions are essential for successful options trading.Remember, options trading carries inherent risks, and past performance doesn't guarantee future results. Always conduct your own due diligence and consider your risk tolerance before entering any trades.