NVDA @ $167.06 UNDERWATER $14.94 (8.2% below SS)
25 contracts (2,500 sh) | SS: $182.00 | IV: MEDIUM
LC: $130 exp 2028-01-21 (entry $85.070/sh)
SP: $190 exp 2028-01-21 (entry $43.099/sh)
HP: $164 exp 2026-06-18 (entry $7.187/sh)
Economics
| Max Loss | $185,625 | (ND $48.25 + SW $26) x 2500 |
| Normal income ref | $11,602/mo | 75% ann ROI on ML |
| Hedge rolling cost | $10,828/mo | |
| Unrealized P&L | $-49,147 | fortress legs from IBKR |
| FIGHT CC | $168 call, $3.35 bid | exp 6 Apr 2026 (7d DTE) |
| Conservative CC | $182 call, $0.41 bid | exp 10 Apr 2026 (11d DTE) |
FIGHT Allocation
| Contracts | Income/mo | Net/mo | CC→SS Gap | Net@SS |
|---|
| Cover hedge | 7/25 | $12,063 | $1,235 | $7,805 | $-25,738 |
| Match normal | 15/25 | $22,654 | $11,826 | $16,725 | $-34,658 |
| Full FIGHT | 25/25 | $35,893 | $25,065 | $27,875 | $-45,808 |
FIGHT Options (exp 6 Apr 2026, 7d DTE)
Fortress delta: 0.836 (IBKR) | Gain@SS: $31,214
| OTM% | Strike | Bid | $/ct/mo | Survival | Hedge Ct | Match Ct | Gap/ct | Gap@Match | Net@Match | Net@Strike | Net@SS |
|---|
| 1% | $168 | $3.35 | $1,436 | 52% | 7/25 | 15/25 | $1,115 | $16,725 | $11,826 | $-43,213 | $-34,658 |
| 2% | $170 | $2.21 | $947 | 64% | 10/25 | 24/25 | $979 | $23,496 | $12,015 | $-37,709 | $-41,429 |
| 3% | $172 | $1.36 | $583 | 75% | 18/25 | 25/25 | $814 | $20,350 | $3,743 | $-34,388 | $-38,283 |
| 5% | $175 | $0.79 | $339 | 84% | 25/25 | 25/25 | $621 | $15,525 | $-2,364 | $-30,588 | $-33,458 |
* = cannot fully match normal income with 25 contracts
TRADE RECOMMENDATION (match normal income)
Sell 15: NVDA $168 call (exp 6 Apr 2026, 7d DTE, ~$3.35 bid)
Keep 10: $182 CC (~$0.41 bid)
Net income: $11,826/mo (target $11,602)
Gap CC→SS: $1,115/ct ($16,725 across 15 contracts)
Legend
| Max Loss (ML) | Worst-case loss: (Net Debit + Spread Width) x shares. ND = LC entry - SP entry + HP entry. SW = SP strike - HP strike. |
| Normal income ref | Target monthly income: IV-based annual ROI on ML / 12 (LOW 45%, MED 75%, HIGH 95%) |
| Hedge rolling cost | Monthly cost to maintain the HP (protective put): (30 / HP_DTE) x HP_ask x shares |
| FIGHT CC | Short-dated, near-ATM covered call for income recovery |
| Conservative CC | Standard CC at safe strike (far OTM when underwater) |
| Cover hedge | Min FIGHT contracts to pay for the hedge rolling cost |
| Match normal | FIGHT contracts needed to reach normal income target |
| Gap/ct | Net gap risk per contract: (SS - strike - bid) x 100. Max loss if stock rallies to SS, net of premium received. |
| Gap@Hedge | Total gap risk at cover-hedge contract count |
| Gap@Match | Total gap risk at match-normal contract count |
| Net@Match | Monthly income after hedge cost at match-normal level |