Last year, $NVIDIA Corp(NVDA)$ soared by a massive 239%, and this year it’s already up 190% YTD.
But the real question is: How can you outperform the stock’s returns in such a bull market?
💡 Want to know the secret behind those mind-blowing gains? Let’s dive in!
🎉 Huge shoutout to @Fizzles for locking in an incredible 229.22% profit on NVDA calls!
🎉 And a big congrats to @Changjieming for bagging a $1,499.24 gain on NVDA calls!
👉 Got a winning strategy of your own? Share your golden trading tips in the comments below! 👇
So, why is there such a big difference in cost price for the same NVDA calls?
If you look at the chart on the left, you'll notice an expiration date of 2024-10-25 with a strike price of $148. The option’s time value is nearly drained, as it’s close to expiration. On the right, the expiration date is 2025-12-19 with a strike price of $120, and it’s already deep in the money.
Now, let’s break down the perks of buying call options:
💥 Leverage: With options, you can control a larger stock position for a fraction of the cost. By paying the premium, you can capture potential gains from the stock's upward movement without putting up the full price of the shares.
🛡️ Limited Risk: The maximum risk when buying a call is the initial premium paid. If the stock price falls below the strike price, your worst-case scenario is losing the premium—no more, no less.
📈 Unlimited Upside: If the stock price exceeds the strike price, you can buy the shares at a lower price, locking in the profit. In theory, the potential upside is limitless.
However, there’s always a catch: time risk. Options have an expiration date, and their value decreases as time ticks away. If the stock doesn’t rise above the strike price by then, the option could become worthless.
🔥 Nvidia is just $70 billion away from overtaking Apple as the world’s most valuable company! When do you think it will reach the top?
Some analysts predict $160-$165 will mark a near-term top before a potential reversal. 📉
💼 Got NVDA in your portfolio? What’s your target price?
Let us know your thoughts below! 👇
🎁Rewards：
Feel free to share your NVDA stock positions in the comment section to win Tiger Coins! Don't miss out on sharing your tactics; give us a lesson!
Large or high-win-rate positions also stand a chance to win stock vouchers and official interview invitations! Let's uncover who the guru is!
If you've achieved profits from other potential stocks we don’t know, kindly share your trading strategies in your post, and remember to include the topic "Winning Trades". Hope you'll be the next one to make it onto the leaderboard~
Comments
🌟🌟🌟There is no question that Nvidia $NVIDIA Corp(NVDA)$
I just simply buy Nvidia and hold long term as it is the market leader in specialised AI chips that is very much in demand. Its closest competitor $Advanced Micro Devices(AMD)$
As the late Charlie Munger likes to say "The Big Money is not in the Buying and Selling but in the Waiting". That is how he and Warren Buffett became rich, through the magic of compounding.
@MillionaireTiger @TigerStars @Tiger_comments
In parallel, I'm honing my options trading skills using a demo account. Currently, I'm focusing on selling puts, which can provide a strategic hedge in a volatile market. However, I've encountered a limitation - the demo platform doesn't allow setting stop-loss orders.
nvda was the only game in town and doing all the work. And everyone is rushing into the $150 call…
Goal for next 3 months:
Buy Nvidia on a 3% dip
Buy more Nvidia on a 5% dip
Buy NVDL on a 10% dip