Current Events > CE NVIDIA Stock March Price Target Pt. 2

(+) Yeah! (+)

Last month (01/19/2024) I predicted NVIDIA would reach a share price of $707 before earnings. The share price was $580 a share that day. I've been buying then selling call options and making serious bank on it since it's rise to $690 today. I've bought over 10 ITM call options on the way up and sold periodically to lock in profit.

Anyone want to predict where it goes by their earnings release later this month?

Okay

You bought ITM or you bought OTM that went ITM?

I bought ITM calls that went way deeper ITM. Yes I would have made more money buying more OTM calls, but ITM is safer.

Yawn_Master2 posted...

I bought ITM calls that went way deeper ITM. Yes I would have made more money buying more OTM calls, but ITM is safer.

You would have also made more money by just buying 100 shares.

Tyranthraxus posted...

You would have also made more money by just buying 100 shares.

I bought 25., but I've been buying multiple calls at a time. I wouldn't have made more just sitting on 100 shares. The share price rose like 25%. My calls rose by 100% sometimes.

https://finance.yahoo.com/quote/NVDA240209C00650000?p=NVDA240209C00650000

Look at these ITM calls.

They've risen over 100% today alone.

I don't really understand how already ITM calls rise by over 100% when you basically have to pay the share price + extra to get them.

Tyranthraxus posted...

I don't really understand how already ITM calls rise by over 100% when you basically have to pay the share price + extra to get them.

Because the expiration date is a week after earnings later this month. The belief is the stock has legs to run up higher further. That said, the fact that the calls are so in the money, they still can be redeemed for a lot of money making them safer than OTM calls. You pay a premium for that insurance.

Proof of options or ban

Tyranthraxus posted...

I don't really understand how already ITM calls rise by over 100% when you basically have to pay the share price + extra to get them.

The greeks, my friend

https://gamefaqs.gamespot.com/a/forum/2/29953340.png

Here are some of the buying and selling.

This stock still had legs!!! I made $2500 in options day trading alone today. Not to include my long term investments in the stock haha

Im happy for you and/or sorry that happened.

Someone explain this to me like I'm 5

AlCalavicci posted...

Someone explain this to me like I'm 5

Chat GPT 4:

Sure, let's break down this conversation and the situation with NVIDIA's stock options in a way that's easy to understand.

1. Stock Options Basics: Stock options are contracts that give you the right to buy (call option) or sell (put option) a stock at a specific price (called the "strike price") before a certain date.
2. In-the-Money (ITM) Calls: ITM call options are those where the strike price is below the current market price of the stock. So, if NVIDIA's stock is at $690 and the strike price of the call option is $580, it's ITM.
3. Out-of-the-Money (OTM) Calls: OTM call options are the opposite - the strike price is above the current market price. These are riskier but can offer higher returns if the stock price rises significantly.
4. Buying and Selling Call Options: The person in the conversation, Yawn_Master2, has been buying ITM call options for NVIDIA. As NVIDIA's stock price rose from $580 to $690, these ITM options increased in value because they gave Yawn_Master2 the right to buy the stock at prices well below its current value.
5. Why ITM Calls Rose in Value: Even though ITM calls are more expensive because they are already valuable (the stock price is above the strike price), they can still increase in value if the stock price continues to rise, especially if there's a strong belief that it will rise further. This is what Yawn_Master2 mentions about the expiration date being after NVIDIA's earnings release, suggesting an expectation of further stock price increases.
6. Comparing Strategies: There's a discussion about whether buying ITM calls or just buying the stock outright would have been more profitable. Yawn_Master2 argues that while they did buy some NVIDIA stock, their return on call options was higher because of the leverage effect (options allow you to control more stock with less money).
7. The "Greeks": The term "greeks" refers to various factors that affect the price of an option, like delta, gamma, theta, etc. These factors help traders understand how the value of an option might change with movements in the stock price, time decay, and other variables.
8. Overall Profit: Yawn_Master2 mentions making a significant profit both from day trading these options and from longer-term investments in NVIDIA.

In summary, this conversation is about someone successfully trading NVIDIA call options, particularly ITM ones, and making a profit as the stock price rose significantly. They chose ITM options for their relative safety compared to OTM options, and their strategy paid off with the increase in NVIDIA's stock price.

NVIDIA is down. might be a good time to get in. BofA and Goldman raised their price targets to $800. I don't think it's worth much more than $705-$720, currently. Following closely.

Yawn_Master2 posted...

I bought ITM calls that went way deeper ITM. Yes I would have made more money buying more OTM calls, but ITM is safer.

isn't the vig on this insane tho. what's the delta?

i hope the TC laughs at this joke like i did

https://gamefaqs.gamespot.com/a/forum/f/f0483d13.jpg

Punchline: The roller symbolizes the increasing price of the stock which means that call you sold could wind up costing you more and more money if you aren't covered, and would need to buy the stock in the event that the call is exercised.

Selling naked calls in general is a dangerous game

Naysaspace posted...

i hope the TC laughs at this joke like i did

https://gamefaqs.gamespot.com/a/forum/f/f0483d13.jpg

Punchline: The roller symbolizes the increasing price of the stock which means that call you sold could wind up costing you more and more money if you aren't covered, and would need to buy the stock in the event that the call is exercised.

Lol, I very much enjoyed it.

https://gamefaqs.gamespot.com/a/forum/f/ff211430.jpg

looking into my account after a while to get tax forms. of course they're not done. then i look at how my account be doing and it just makes me so mad i got married and my wife did all the spending. pulled back on investing to pay back loans for wedding and honeymoon, and god damn, if i kept putting money in vs repaying debt i'd be much better off.

just look at them gains :/
https://gamefaqs.gamespot.com/a/forum/d/dc32d131.png

It just keeps going up.

https://investorplace.com/2024/02/mizuho-just-raised-its-price-target-on-nvidia-nvda-stock/

Mizuho has increased its price target for Nvidia (NVDA) stock to $825, indicating a 14% potential upside from its current level, as the company's shares hit new all-time highs, partly due to its significant position in the artificial intelligence (AI) trend. This adjustment reflects Wall Street's response to Nvidia's remarkable growth, making it the world's fourth-largest company by surpassing giants like Alphabet and Amazon. While the bullish sentiment predominates with 34 buy ratings against four hold ratings, the wide range of price targets, with the lowest at $560, suggests varying opinions among analysts on Nvidia's future market performance.