On Monday, 1/23/12, I bought 100 shares of NVDA at $14.58 to add to and average down my existing 200 shares. I then sold 3 NVDA Jun 12 $18 Covered Calls for a net deposit of $115.72 in an IRA account.  My basis for these NVDA shares is now $21.59.  This transaction represents a simple return of about 1.75% and an annualized return of about 4.42% on my prior, averaged down basis. 

NVDA has been bouncing around the $15 level since basically last October.  I could probably have sold a lower strike price but decided to sell the $18 strike and go a little further out.

S&P has a 12-month target of $19 and a Hold recommendation for NVDA.  MarketEdge has a price opinion of only $14.22 and a Neutral recommendation.  NVDA has had a 52-week high of $26.17 and a low of $11.47, which helped me, decide to pick the $18 strike.  The 29 Yahoo Analysts have a 12-month price target of $17.39 with a recommendation of 2.5 where 1.0 is a Strong Buy and 5.0 is a Strong Sell. 

One day I will let NVDA be called away from me and be done with it.  It does not pay a dividend and I normally do not get sufficient option premiums from it to like it for that reason.  For now I continue to hold the stock and sell Covered Calls and am currently a little optimistic that I may actually be able to sell NVDA at a profit one day.  Six months ago I was of the opinion that it was dead money and that I should let it be called away sooner at a lower strike price and redeploy the money in a better returning investment.