1Settimana·

Keep up the good work, orange man

So now TSMC is also facing 100 percent tariffs - which would $NVDA (-1,35%) would hit hard. Go ahead, dear Donald - then you'll send the put I bought today into the stratosphere.

And my $TSLA (+0,65%) -put will then also develop magnificently out of sympathy.

09.04

SOC

Societe Generale Effekten GMBH Warrant 2024-19.09.25 on NVIDIA Rg

Acquistato x25000 a 0,44 €

11.000,00 €

13 Commenti

Caynify@Caynify

1Settimana

I feel sorry for you

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Charmin@Charmin

1Settimana

@Caynify There is no reason - my NVIDIA position has risen by 80k. So the -6k for the put is absolutely bearable ...

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Charmin@Charmin

1Settimana

Okay, I really didn't expect Trump to go down like a primrose. But I'll still let the hedge run for now. I don't trust the peace.

My NVIDIA position is up 70K today, my put - of course - down 6K. If I take the ratio every day ...

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Gi Vey@Nofan

1Settimana

@Charmin It was worth a try

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German1@German1

1Settimana

The reason for your purchase is absolutely understandable. Nobody could have expected that.

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Name@user24790529394

1Settimana

@Charmin Oh man.

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Tobi@Tobiwankenobi500

1Settimana

@Charmin I don't know anything about the tool - can you write 1-2 warm words about what is happening here? :)

LG Tobi

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Charmin@Charmin

1Settimana

@Tobiwankenobi500

In simple terms: you have a position in share x. To hedge against price losses, you buy a put (i.e. an option to sell shares at a fixed value) on this share. If the share price falls, the put rises.

Depending on the ratio of the put and the number you buy, you can use it to cushion the fall in the price of your shares.

My strategy here is:

I believe in NVIDIA in the long term and assume that - over a period of 3-5 years - the value of the share will increase.

In order to capitalize on the current decline in the value of the shares, I am getting the put.

What can happen now?

1. the share price falls by 20 percent: my put would then probably rise by around 100-200 percent. In the case of my position, this does not make up for the losses on the shares, but at least to a good extent. I would then - when I think we have passed the trough - sell the put and almost certainly put the profit into more NVIDIA shares.

2. the share price rises: Then my put would lose, and - if I don't sell it - possibly expire worthless at maturity. However, if the share price has risen, at least the value of the share is back in the green.

3. the share price moves sideways: in this case, the put also becomes worth less and less the closer it gets to the expiry date. This would be the least favorable option for me.

DISCLAIMER: This is only a very, very, very rough outline. The topic is much more complex and a lot more variables play a role here.

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Chris@Multibagger

1Settimana

The idea and approach is logical and understandable. I would therefore be more interested to know why you chose this particular bill? High premium, negative delta, so for me a fairly high loss of time value.
And the second question would be whether you want to trade the bill, i.e. ride the waves, so to speak. In other words, sell more often at a profit and then buy again after the technical reaction of the share.

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Charmin@Charmin

1Settimana

@Multibagger I wanted a big lever, I didn't care about anything else.

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Peter@investingbeginner

1Settimana

what did you do with this position?

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Name@user24790529394

1Settimana

Lesson learned: Never bet against the orange man.