To The Moon

🍲 One Evening, Two Small Trades, A Few Hai Di Lao Meals – My Cash-Secured Put Journey

There are many ways to measure progress in investing. Some people count portfolio value, while others focus on annual returns. I like to keep things simple. Sometimes, I measure my option premium by something I can enjoy with my family—a nice meal together.

On this trading day, I completed two short-term cash-secured put trades on NVIDIA before opening another position. The realised profits were modest, but they reminded me that consistent, disciplined trading can gradually build wealth over time.

📈 Trade 1 – Locking in a Small Profit

Earlier in the day, I sold one NVIDIA cash-secured put with:

* Expiry: 28 August 2026

* Strike Price: US$195

* Sell Price: US$6.15

Later, I bought the same contract back at US$5.90.

That means I captured:

US$0.25 × 100 shares = US$25 (before commissions and fees).

Some traders wait for maximum profit, but I prefer to close positions early when I believe the available reward no longer justifies the remaining risk. Taking a small profit also frees up capital for the next opportunity.

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💰 Trade 2 – Another Small Win

Later that evening, I sold another NVIDIA cash-secured put with:

* Expiry: 18 September 2026

* Strike Price: US$200

* Sell Price: US$9.60

Shortly afterwards, I bought it back at US$9.46.

The realised profit was:

US$0.14 × 100 shares = US$14 (before commissions and fees).

Again, the gain was not huge, but it added to the day’s result while reducing my exposure.

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🧮 Small Gains Can Add Up

Across both completed trades:

* First trade: US$25

* Second trade: US$14

Total realised premium before transaction costs:

US$39

At current exchange rates, that is roughly S$50 (depending on the USD/SGD rate).

One trading session did not make me rich, but it demonstrated how disciplined execution can generate incremental income when market conditions are suitable.

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🍜 Turning Premium into Family Memories

Instead of thinking only about dollars, I sometimes think about experiences.

A profit like this may contribute towards a family meal at Hai Di Lao. Sharing dinner with loved ones can be far more memorable than simply watching numbers on a brokerage screen.

Looking at the birthday photo reminds me why I invest. The goal is not merely to collect option premiums—it is to create opportunities to spend meaningful time with the people who matter most.

Trading is only a tool. Family remains the priority.

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🐶 Why I Like Cash-Secured Puts

Selling cash-secured puts is a strategy that suits investors who are prepared to buy shares at a predetermined price.

Before opening a trade, I ensure that I have enough cash available to purchase the shares if assignment occurs.

For one standard U.S. option contract:

1 contract = 100 shares.

If assigned, I buy 100 shares at the agreed strike price.

If the option expires worthless or I close the position early, I keep some or all of the premium received, depending on the outcome.

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📊 Why I Chose These Strike Prices

Rather than selling puts at the current market price, I often prefer strikes below the prevailing share price.

A lower strike provides a buffer if the stock declines.

Of course, no strike guarantees safety. If the share price falls well below the strike, I may still be assigned and experience unrealised losses on the shares. That is why I only sell puts on companies I would be comfortable owning.

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⏳ Why I Closed Early

Some traders hold positions until expiry.

My approach can be different.

If I have already earned part of the available premium and believe the remaining reward is relatively small compared with the remaining risk, I may choose to buy back the option and move on.

Closing early can:

* Reduce market exposure.

* Free up capital for future trades.

* Eliminate overnight uncertainty on that position.

Every trader has a different style, and there is no single correct approach.

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⚠️ Risk Management Comes First

Although these trades were profitable, selling cash-secured puts is not risk-free.

Important risks include:

* The stock price can fall sharply.

* Assignment may require buying 100 shares per contract.

* Capital must be available to purchase those shares.

* Option prices are affected by volatility and time to expiry.

Because of these risks, I always size my positions according to the amount of capital I am prepared to commit.

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🎯 Consistency Over Excitement

Many people look for spectacular gains.

I prefer to focus on consistency.

A series of small, disciplined gains can accumulate over months and years, provided I continue to manage risk carefully and avoid taking oversized positions.

Not every trade will be profitable. Accepting occasional losses is part of investing. The objective is not to win every trade, but to follow a repeatable process.

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❤️ More Than Just Numbers

Every realised premium has a purpose.

Sometimes it contributes towards a family dinner.

Sometimes it is reinvested.

Sometimes it remains in cash while I wait for another opportunity.

Seeing a birthday celebration over a simple meal reminds me that investing is ultimately about improving life outside the markets—not spending every minute watching price charts.

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📚 Final Thoughts

Cash-secured puts can be a useful strategy for investors who understand the mechanics, have sufficient capital, and are willing to own the underlying shares if assigned.

In this example, two completed NVIDIA trades generated approximately US$39 before commissions and fees. The amount is modest, but it illustrates how disciplined trade management can gradually produce income over time.

The market will always present new opportunities. My job is not to chase every move, but to remain patient, manage risk, and remember why I invest in the first place.

Educational Disclaimer: This article describes one example of option trading and is intended for educational purposes only. It is not financial advice or a recommendation to buy or sell any security or option. Options involve significant risk, and investors should fully understand the product and ensure they have adequate capital before trading.

@ThetaGainer @Pilates @Shernice軒嬣 2000 @TheBeautyofOptions @InverseCramer @MillionaireTiger @WallStreet_Tiger @MillionaireTiger 

Find out more here: Tiger First Stripes: Understanding the Tools and Terms Behind Your Trade

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