Not sure how this number is calculated, but Yahoo Finance was claiming that 283 billion in options were traded in NVDA on Tuesday alone. Might be people buying back their call options. If it closes over 1200, you have to deliver the stock or buy back the calls? I guess you get the value from selling the stock at a higher price than it was when you wrote the calls, but if it closes over 1200+premium it's a losing bet?
The winning bet is just having 4 years of RSUs vesting
if it closes over 1200 it doesn't matter unless its very close to expiration due to the time premium
for example if the stock is at 1215 and the 1200 June option is 60 bucks, they would be stupid to exercise the option rather than just sell the option for way more money
so you can predict when the option will get assigned when they are much closer to parity, (like in my example stock is at 1215 and the option worth 15 bucks and change) and roll them beforehand or just don't do anything and let the stock go if you want to sell it
but anyway to answer your question, I sell out of the money options on stocks I own (for myself and clients) to generate extra cash flow
so if it goes up, yay, and if it doesn't go up, yay... only time its a losing proposition is when a stock goes parabolic like nvda has done the last few years, but then I just don't do anything or write waaay out of the money options on it after it makes a huge move
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