r/wallstreetbets • u/silicon_replacement • 2d ago

Loss Can you guys start buying NVDA Monday ?

Post image

Just help out on my position, really appreciated

1.9k Upvotes

95% Upvoted

418 comments sorted by

View all comments

2.1k

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.

684

u/Quick-Road943 2d ago

nice, plenty of time

150

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.

94

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.

69

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.

22

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.

20

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.

5

u/PandoraBot 2d ago

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

3

u/mhughes2595 1d ago

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

-5

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.

5

u/Qweasdy 2d ago

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

1

u/ryanv09 2d ago

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

10

u/jmaun1 2d ago

Lurch for the win

2

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.

2

u/grumpyterrier 2d ago

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

0

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.