$Nasdaq Composite Index (.IXIC.US)$ at or around 4:30 today ...
$Nasdaq Composite Index (.IXIC.US)$at or around 4:30 today we are going to have a major shock to the market I hope it's to the upside. but then again I have a saying, if it comes to Hope in investing you're already.. fked.
if you look what happened to Target a moment ago it's down over $30 nobody was expecting a move of that magnitude.. Nvidia is going to have a similar type of a move but only to the downside if there's any disappointment upside games are never as robust as the rug pull.
the cost of the premiums for NVIDIA are very expensive right now because there's so much money betting on a swing which is now 12 and a half percent up or down.
however you can buy a put option it will expire Friday which is plenty of time you're going to be out tomorrow morning on the open or it's going to zero really that simple if you're out you're going to make a lot of money.
s o x l is a 3X leverage chip ETF the largest holding is NVIDIA.
if you buy a November 22nd that's this Friday, 23 put
the cost is 9 cents per contract so for $90 your controlling a thousand shares till Friday at 4:00 p.m. for $900 you're controlling 10,000 shares.
this ETF can go right to $20 in a blink of an eye tomorrow morning. and you would sell right on the gap down on the open you don't wait through the day because the greatest premium is going to be on the open and then people will go in to cover short positions and you're going to get a little bit of a bounce effect.
the point is is that the potential is a 30 times return your money. will it hit 20 if there's a problem with Nvidia if they have deteriorating margins if they guide lower for fourth quarter margins . if there is a delay in Blackwell, Jensen says there isn't he said that last quarter he says they're shipping. is there any truth to them running hot? is his answer going to be accepted if there is a problem or will people sell first and ask for forgiveness later.
all there needs to be is a kink in the armor think of a damn that's holding back billions of gallons of water and that damn has to be built damn perfect... how about that one... if there's a tiniest little pinhole leak the water will find a way out and the dam will fail. that's basically where Nvidia stock is right now that's why it only makes sense to either hedge tech stocks because they all will come down tomorrow morning by buying this put or maybe you don't own tech stocks and maybe you have some risk capital and you want to take a shot.
I think a 30 to one return is pretty compelling.
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10baggerbamm
OPcounsellor
:
look if you don't understand options now's not the time where the place you need to take the time to educate yourself and moo moo is an outstanding source of information just go up in that little round circle and type in understanding option basics and start reading and listening to the videos that are linked. once you have a working knowledge on options of how they work what the risks are the different types of options understanding the premiums how they're determined what the deterioration of time is then you can add options to a strategy to help protect principal or to potentially make a lot of money.
再世孔明
10baggerbamm
OP
:
What I learnt about stock education. If everyone learns how stock functions, everyone will be winner. The stock market is steered by the institutions. Sometimes they allow stock education to come true, sometimes they don’t.
counsellor : Please explain more , and why so pessimistic
10baggerbamm OP counsellor : look if you don't understand options now's not the time where the place you need to take the time to educate yourself and moo moo is an outstanding source of information just go up in that little round circle and type in understanding option basics and start reading and listening to the videos that are linked. once you have a working knowledge on options of how they work what the risks are the different types of options understanding the premiums how they're determined what the deterioration of time is then you can add options to a strategy to help protect principal or to potentially make a lot of money.
再世孔明 10baggerbamm OP : What I learnt about stock education.
If everyone learns how stock functions, everyone will be winner. The stock market is steered by the institutions. Sometimes they allow stock education to come true, sometimes they don’t.