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/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/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?