I continue to be extremely concerned about the over valuation of stocks but that doesn’t mean there isn’t a way to make risk free money. So far, I have net credit collars on GLD, IWM, IBIT, and recently added more NVDA.
Mechanics of Trade
Here’s a walk through of the trade.
- Buy 100 shares of NVDA @ $181.36
- Buy 1 put contract $181 strike for January 16, 2026 expiry for $1335
- Sell 1 call contract $182 strike for January 16, 2026 expiry for $1569
The net credit here to my account is $1569-$1335 = $234 [5.67%]. If NVDA is above $182 on January 16, 2026, I will earn an additional $64 [0.35%] in profit. The total return if NVDA > 182 = 7.19% annualized. If NVDA < 182 the profit is 5.67% annualized.
This isn’t a spectacular return but it beats T-bills and it is relatively risk free.
Volatility
Because of constant announcements from the administration on trade, tariffs, geopolitics and other things, the market continues to undergo high volatility and my primary concern is not losing money so this is the best method I have found to make money without risking too much.
I also have bonds, some stocks, and real estate generating income so this adds one more layer of diversification.
What’s Next?
The key challenge I have right now is finding enough equities to net credit collar. So far, the most volatile things (gold, bitcoin and NVDA) have been the best way to earn money with low risk but it’s fine with me for now.