4D·

🚀 Update on my NVDA calls

First of all: Thank you for all the likes & the mega interest in the first options post! 🙌 So here's a quick update on the plain vanilla option. Time has been tight lately - and I'm also about to change jobs. Life is going well!

What's been going on?

Nothing - I'm holding my 2 call options on $NVDA (+0,68%) still.

Why? Quite simply:

My entry price was 29 USDcurrently the option stands at approx. 65.43 USD - that is over +100% and thus enough buffer even in the event of a drop.
According to Swissquote, the leverage is 2.15 - i.e. if Nvidia rises 1%, the option moves about twice as much. Suitable for me.
Nvidia currently stands at 160 USD, strike is 102 USD - so I am well in the money. I assume that we will see 180 - 200 by June next year.

My target:

I plan to hold these calls until I can buy 100 or even 200 Nvidia shares next year at the strike price of 102 USD per share - regardless of where the market price is then (if above USD 102). If the price continues to rise nicely, I may take out an option beforehand to hedge the stake. This would be the case at 200-220.

Why not sell yet?

The remaining term runs until June 2026 - that gives me enough time for Nvidia to step on the gas (AI, chips, cloud - you know the drill). And the time value loss is still manageable thanks to the long term (Theta -0.03). In return, I am happy to take the leverage, or rather to push out the liquidity requirement.

Still important:

Volatility: 49.35% → market expects average movement.
Delta: 0.90 → The option moves almost 1:1 like the stock.
Break-even: Is currently at 168.68 USD - if anyone still wants to add the option to their portfolio. However, I would rather go for an option at the market price (at-the-money) again. But I don't know whether I still see soooooo much upside potential? 10-20% would be nice. Crystal ball required 😉

Ah and the promised contribution on put options is coming - be sure to follow if you want to know how to use puts not only for speculation, but also strategically to buy shares more cheaply if the current price is too expensive 😉.

Questions or ideas? Keep them coming 👇

Happy investing

#nvda
#optionen
#calloption
#putoption
#finanzbildung
#geldgenie

GeldGenie

@GeldGenie

3Mês·

Call option on NVDA

Today I bought 2 call options on Nvidia ($NVDA (+0,68%)) 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 (+0,68%) 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.

#optionen
#nvda
#calloption

01.04

NVDA JUN26 2026-06-18 102C 100

Comprado x1 em CHF 5.800,00

CHF 5.800,00

4 Comentários

Chris@Multibagger

Where do you trade the options?

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GeldGenie@GeldGenie

@Multibagger Swissquote. Quite okay in terms of price. But unfortunately, like most banks, they do not offer a tied combination of options - e.g. Iron Condor.

UBS would be more flexible/"better" but simply too expensive with rather smaller volumes.

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Chris@Multibagger

Where do you see the advantage of options over turbos?

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GeldGenie@GeldGenie

@Multibagger Turbos and other certificates/structured products are merely a combination of options/futures/loans or financing. The issuer is paid for this service via a spread. Since he is a market maker.

With Plan Vanilla, my counterpart is Max Muster, XY AG and Maria Meier. With Zertis, it is the bank.

The payout when knockout levels are reached: residual values of the underlying investments (options, futures,...).

I can also do what I want with options. Control the buying and selling prices of my investments.

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