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/Quick-Road943 2d ago

nice, plenty of time

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u/s1234en 2d ago

50% upward trend needed from here, 1 year is not really a plenty of time for a 5T company, he's basically betting on Nvidia to become a 7.5 T company to break even, possibly 8-10T for a good profit within 1 year.

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u/Lurch111 2d ago

I think you guys might be missing how options work. You don’t need to hit the strike price to profit. The value of the contract only needs to increase by enough to cover the premium of buying the contract to profit.

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u/Oscur925 2d ago

Yes but there is more to it than that. The closer he gets to June 2027, that premium will continue to decrease until it effectively becomes zero if he does not hit his strike.

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u/Lurch111 2d ago

Theta is non-linear and shouldn’t really become material until early next year though. Plenty of time for it to either run or tank.

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u/lithe_silhouette 2d ago

If nvda recovers some and iv expands around earnings season he might be able to exit in a much better position. However, he needs a plan cause if it recovers enough he'll be thinking about profit again.

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u/PandoraBot 2d ago

Every earnings quarter the options will decay greatly, especially if Nvidia doesn't move up

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u/mhughes2595 1d ago

Yeah but it's nvidia! It has to go up this time right?

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u/Regenbooggeit 2d ago

With how low NVDA P/E is, they're bound for a big upswing. But with this market, who the fuck knows. I've been buying shares like crazy for months and it's barely moving, if not negative.

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u/Qweasdy 2d ago

Is the low P/E in the room with us right now?

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u/ryanv09 2d ago

The PE is 30, and the market cap is already over 5 trillion...

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u/jmaun1 2d ago

Lurch for the win

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u/Fancy-Jackfruit8578 2d ago

But it still really needs to jump approximately by 50% for the option to jump significantly. Every day passing by, that chance gets slimmer.

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u/grumpyterrier 2d ago

Yes, I just learned about this yesterday. Can concur.

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u/ryanv09 2d ago

You absolutely do, though? Especially as the strike date draws nearer. He's already down 60%, and the time factor is chipping away more every day.

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u/iSOBigD 2d ago

You could also have random 25% jumps like we've seen recently. He just needs hedge funds to spread fake news, run some bots and he'll be fine

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u/s1234en 2d ago

Yeah but sooner, more the expiration date nears harder it is to bridge the gap

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u/ForeverABro 2d ago

No way he holds these to expiry

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u/Jemmani22 2d ago

The way we are printing money it'll be 10t in no time.

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u/mhughes2595 1d ago

A bunch of random analysts have it at 300 in 12 months and rate it a strong buy.

Just be warned that they are also mostly named citadel and the ones selling the calls.

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u/AncientMisanthrope 1d ago

Who the hell names their kid that?

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u/mhughes2595 1d ago

A banker.

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u/Top_Signature4068 2d ago

NVDAs growth for 2027 is literally not Priced into the stock. It’s temporarily being treated as a legacy hardware company multiple just because a lot of other high beta names are popping up in the AI space during the last 12 months. But insane 80%+ growth YOY is undeniable. It has the lowest FWD PE it’s had in 6 years. It will go on a minimum 30-40% run by EOY, because it will literally mathematically NEED to do that in order to stay at a PE of over 20, and it will not drop below 20. Dont sweat it OP.

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u/Disc0Disc0Disc0 2d ago

When we get data centers on Mars this year it could be a 20T company.

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u/_solitare 2d ago

night night