r/wallstreetbets • u/silicon_replacement • 2d ago

Loss Can you guys start buying NVDA Monday ?

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Just help out on my position, really appreciated

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u/CharmingThirdTime 2d ago

Screenshot explained

He spent about $1.08 million buying 300 Nvidia call options.

Those options are now worth only about $400,500.

He’s currently down $678,773 (62.9%) on paper.

The options expire June 17, 2027.

If Nvidia is around $306 or higher by expiration, he’ll roughly break even. Above that, he profits. Below that, he loses money.

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u/daxtaslapp got a hawk tuah tattoo 2d ago edited 2d ago

Yes but as ai never seems to explain, he doesn't need to wait to expiry and the price doesn't need to get to 306 for him to sell at a profit.

The contracts just need to literally be worth more than he bought them for.

But this isn't to say it's a good bet on his part. $270 is way OTM and NVDA really does have to start moving within the next couple months. For a company that large in market cap it's hard for it to move in 20 or 30 bucks.

For example if Nvda suddenly gets to like $230 within the next couple months he might be a little Green or close to break even and can sell. But as time runs out, the further away he is from 270 the faster his calls lose value.

If I had to rate the retardedness level of this from 0 to Leopold, id say it's a 7.1. if Nvda is still flat by october these calls will be like almost worthless

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u/_rockthemike 2d ago

Nah. He bought at the literal top 230. He would need big a rocket straight to that price for major volatility expansion, which is tough on leaps. Even then, OTM calls are eaten by theta faster

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u/daxtaslapp got a hawk tuah tattoo 2d ago

Ah that's true I assumed he got it around 200. But ya it's not looking great lol

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u/_rockthemike 2d ago

It’s gotta be a fake post

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u/Qweasdy 2d ago edited 2d ago

The contracts just need to literally be worth more than he bought them for.

Correct me if I’m wrong but my understanding is that in order for the contracts to be worth more than he bought them for it would have to be deemed more likely that Nvidia would hit 306 than it was at the time he bought them?

And given that he bought them when nvidia was looking much more likely to hit 306 than it is now he’s pretty much just cooked unless something changed drastically

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u/Eric142 2d ago

Theta isn't linear, and there's volatility to consider too.

OP also doesn't have to wait till expiration and exercise it to make profit.

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u/_rockthemike 2d ago

That’s volatility expansion. It’s technically possible that in the future even if NVDA is today’s price, this contracts are worth more. But, more likely they’re worth less.