2D·

Call option on NVDA

Today I bought 2 call options on Nvidia ($NVDA (-6,05%)) with a strike price of USD 102 and a term until June 2026.

What is a call option?

A call option gives you the right (but not the obligation) to buy a share at a fixed price (the so-called strike price) until a certain date. In my case, this means that I have the right to buy Nvidia shares for USD 102 each until June 2026, regardless of how high the share price rises (or falls 🫣) by then.

Why a long term?

Long-term options, also known as LEAPS (Long-Term Equity Anticipation Securities), provide more time for the share price to move in the desired direction. This reduces the risk of short-term market fluctuations rendering the option worthless. However, LEAPS are more expensive than short-term options, as they have or price in a higher time value due to their longer term.

The current share price of Nvidia is around USD 107.69. Since my strike price is USD 102, my option currently has an intrinsic value of USD 5.69 per share (USD 107.69 current share price minus USD 102 strike price). In addition to the intrinsic value, the option price includes a time value that depends on factors such as the remaining term and the expected volatility. This time value means that the market price of the option is higher than the intrinsic value alone.

What did I pay in total?

2 contracts of 100 units each, price USD 29 per unit = USD 5,800 plus fees.

With these call options, I am betting that the Nvidia share price will rise "significantly" by June 2026. The long term gives the investment enough time to benefit from positive developments. The trade is profitable from a price of $NVDA (-6,05%) of over USD 131 (strike + price = 102 + 29 = 131) - so the thing still has to rise by around 22%. This seems plausible to me at this time.

Personal best case: rise to ~160.- Then I would sell one of the options ("take out the stake") and let the other continue to run and probably take over the shares in June 26'.

take over the shares in June 26'.

Do you still need the post on options? Then I'll take care of it. Call/put long/short and some "usual" combinations.

LG

GG

#optionen
#nvda
#calloption

01.04

NVDA JUN26 2026-06-18 102C 100

Comprado x1 em CHF 5.800,00

CHF 5.800,00

73

39 Comentários

Marcelo@Marcelo-80

2D

Very nicely explained.

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GeldGenie@GeldGenie

2D

@Marcelo-80 Danke. 👍

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GeldGenie@GeldGenie

2D

@Marcelo-80 Let's see if the bet works out. 🤪 But I'm quite optimistic here.

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2D

great contribution, please also write a post about options 🙏🏼

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GeldGenie@GeldGenie

2D

@banana_rama I'll try to make time in the next few days. 👍

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Filippo P.@filz

7H

@GeldGenie Really great explanation. If you have time a post/example for PUT options would be great for me.

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2D

Thank you. Very nicely explained. More information would be great.

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Chiefwiggum@Hidalidsch

2D

Thanks for the explanation, it will solidify in your head 🤩 Happy to keep sharing

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SemiGrowth@SemiGrowth

1D

you already know that you can also link the right bill

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GeldGenie@GeldGenie

1D

@SemiGrowth cannot be found.

NVDA260618C00102000

Show me 🙈

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SemiGrowth@SemiGrowth

1D

@GeldGenie what kind of ISIN is that, it's not even the correct format.

Here is a 102 2026 June 18 call on NVIDIA
$null

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GeldGenie@GeldGenie

1D

@SemiGrowth This is a warrant ≠ option 🙈

(Edit: Certain issuer (GS) vs. "free market")

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SemiGrowth@SemiGrowth

1D

@GeldGenie ah, I thought you bought a warrant, my bad. Because in Germany you can't buy options as a private investor, mMn

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GeldGenie@GeldGenie

1D

@SemiGrowth Really? :-0 As long as your broker has access to the ISE, it should be accessible to everyone, right?

in my opinion it should be open to everyone... I don't see the point in paying GS if I can do it myself. Warrants only make "sense" if you can't afford the amount of the option (1 lot = 100 shares (usually)).

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SemiGrowth@SemiGrowth

1D

@GeldGenie no, I'm pretty sure about that, maybe it's also an EU thing. To protect private investors, because you can lose more than -100%.
But another question, shouldn't the performance still be almost identical (in this case with a factor of 10 different prices)?

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SemiGrowth@SemiGrowth

1D

@GeldGenie I checked again, apparently it does work via foreign brokers. But it's quite difficult for you. The classic brokers usually don't support this

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GeldGenie@GeldGenie

1D

@SemiGrowth Relatively identical - apart from the currency. Factor not sure, would have to look at the denomination of the warrant. 👍

Can compare it when I come to
should come to the sale. 😊

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SemiGrowth@SemiGrowth

1D

yes, should be 10, I think the option is at 29 dollars and the bill at 2.9$

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1D

@SemiGrowth You are allowed to trade options as a private investor - you just have to answer a lot of questions and provide information to the broker to protect yourself as a private individual. I myself trade US options with Interactive Brokers. Very exciting topic 👌🏼

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1D

Thanks for explanation from a newbie here! :) Can I ask what platform you are using?

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GeldGenie@GeldGenie

1D

@gedenius The broker is Swissquote.

Or what platforms are you referring to? 👍

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A Belgian investor@On3_investment

1D

Nicely and shortly explain, would be happy to read more about it!

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Kapitän K.@PalmPirateTechnocrate

1D

In the event that Trump raises tariffs to the extreme today at 10pm, Nvidia and Apple are screwed. A PUT option would be the better choice. Nvidia relies on many suppliers outside the US, just like Apple. Good luck!

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GeldGenie@GeldGenie

1D

@PalmPirateTechnocrate 1.5 years time. It is an investment decision. Not speculation. The demand remains and NVDA has the market power to offset the costs.

And "when", "if" and "would have" will be revealed in 45min. Yes - I am assuming a
trade war that will be started by the orange dwarf. But in the same way, Trump cannot afford to drive his economy to the wall. Then in 5-6 months there will be a popular uprising, impeachment and then 1 year to recover 😉

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Kapitän K.@PalmPirateTechnocrate

1D

@GeldGenie He has to. He had no choice because his predecessors created USD 36 trillion in debt. He must force the Fed to lower interest rates. He will bring the tariffs. But it's ok, I would have chosen a put. Let's chat in 1.5 years.

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GeldGenie@GeldGenie

1D

@PalmPirateTechnocrate Aaaah Trump fan spotted 😂

Unfortunately, the economic costs are far greater than the interest savings on the national debt. Plus it leads to interest rate hikes again later. If it's his "plan" - it's an absolutely stupid plan. (Speculation on the plan has already been refuted several times. It has net negative consequences for the US and global economy).

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Kapitän K.@PalmPirateTechnocrate

1D

I am European and do not share your "fan spotted". I recommend all Europeans, especially Germans, to invest in Switzerland (CHF, Euro, etc.). I stand by my previous statements and do not share your answer. It is not a stupid plan, it has no other chance because the predecessors, especially the Democrats, i.e. those who wanted to keep slavery, screwed up. You make your call, I'll stick with my put opinion.

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GeldGenie@GeldGenie

1D

@PalmPirateTechnocrate Europe would also lose out. China is most likely to have a sufficiently large sales market and development opportunities in APAC & Africa.

In theory, the plan is macroeconomic nonsense. We may well see what happens in practice. Then you are definitely right with the put and I congratulate you. I'm sitting out, buying and enjoying myself 😉.

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Kapitän K.@PalmPirateTechnocrate

1D

@GeldGenie That's why Trump wants peace with Russia, he wants to deal with Russia so that China does less. China + Russia together are a power, like Germany and Russia... and he rightly wants to prevent that from the USA's point of view. Sit it out... OKAY111!

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GeldGenie@GeldGenie

1D

@PalmPirateTechnocrate BRICS - Brazil, Russia, India, China, Russia.

China and Russia have a much better relationship than Russia and "the West". China continues to buy Russian oil. The consequence of increased tariffs by the USA is a turning away from the EU towards China and APAC.

We will see what the future brings. With trade wars for 3-9 months historically nothing good and 12-24 months everything back on track. 🤷‍♂️

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Gomerdoc@Gomerdoc

10H

@PalmPirateTechnocrate but interest rates will not fall. Because of the increase in inflation that is certain to occur (it is already too high!), the Fed will have no choice but to allow interest rates to rise even higher.
The theory doesn't hold water. The truth is: he somehow estimates this from his hollow gut and brain. Feels unfairly treated and calculates into the tariffs
The moron also includes the German VAT to be paid by US companies in European VAT. The fact that everyone has to pay it here, including nationals, doesn't bother him.

But one of the instruments that Ursula von der Leyen has hinted at is not only against interest on goods, but above all on what hurts the USA the most: services. Taxes on Microsoft, Apple, X, Meta etc. In the EU, there has never been anything like this before.

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Kapitän K.@PalmPirateTechnocrate

2H

@Gomerdoc I see it differently. Yes, the EU will tax technology and software even more, BUT the EU has no alternative. Or do you have SAP on your cell phone or PC as an operating system? And I think interest rates will fall, they have to. Inflation is not driven by money but by tariffs. We will see. I continue to bet on stable companies with cash that pay dividends and are important for daily needs. The worst-case scenario is stagflation, but then that's the way it is...

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Matteo@WBuffett

4H

I don't think that in June it will be back at 130 if trump isn't taking back the tariffs. first of all we're not seeing the real effects of tariffs until may and if them are still on, we'll see an inflationary spiral that might bring US in recession or stagflation. after that this year AI stocks will have some trouble about the CAPEX that are too high respect the expenses sustained by china to do a very similar product. I would say that a bounce back to a 110/115 it's very plausible. I always suggest to buy American options whit a longer expiring date and an higher strike price so that your premium will be lower and your time you've bought an American options

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Matteo@WBuffett

4H

@WBuffett * and your exercise period is much more flexible to the stock trend

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GeldGenie@GeldGenie

1H

@WBuffett It’s June 2026 bud. A loooot of water runs doen the river until then. 😊

Seeing the implementation of AI in so many industries, I doubt they’ll have stock for a while.

But hey - we’ll see! 😊

On the eu/us option: I don’t care - since I have no interest in exercising the right. It’s liquid, can always be sold and exercising makes (barely) sense to me in general. Just locks cash. 😊

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Matteo@WBuffett

1H

@GeldGenie sorry mate, I read 2025 😂 then that’s fair!

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GeldGenie@GeldGenie

1H

@WBuffett Ur totally right for the June 25 outlook lol. But then my price would be heavy lol ^^

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GeldGenie@GeldGenie

1H

@WBuffett btw. seriously rethinking about opening another Call Option after these drops ^^

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Matteo@WBuffett

4H

the best strategy when you think that a stock would probably go high and at the same time you want to be covered it's the "protective put + call debit spread"

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