$NVIDIA (NVDA.US)$ Shouldn't buying call options at the pric...

sendhelp : Buy call if its going to go up buy put if its going to go down,

the longer the expiration date the slower the time decay,

time decay will eat into your option and make you lose money,

buy strike price closer to the current stockprice(more expensive), this is as you will make more money when your option is ITM(in the money) meaning for example if the price is 150 and you buy 150C your option will be in the money, when its OTM(out of the money) it will lose value faster and gain value slower.

correct me if im wrong(anyone)

horse618 sendhelp : time decay is dependent on the theta , the delta is how much your option premium changes for every $1 , and the gamma in basic term is how much is added to ur delta for every $1 increase , the vega is the rate of change based on the implied volatility (IV) , rho is just the interest rate which i think is the least important.

in the moomoo app below on option page there is a profit probability , this only applies to the chances of your option hitting the underlying stock price breakeven and being able to exercise at a profit but honestly if u don't have the spare cash to buy 100 shares of your strike price or want to hold onto the shares , selling the option for the profit premium is more ideal because if you exercise you lose all extrinsic value and the new premium.

personally i don't really look at the profit probability so much. i look at the greeks more , and choose a good strike price and expiry date. can still profit from selling even if your option is out of the money (OTM) . but do not hold onto your option until expiry if it's OTM , it will expiry worthless and you lose 100% cost for that contract.

hope this helps.

圣何塞金牌韭菜 : I can only tell you not to try to buy stocks with this week's exercise price for cheap.I can't help with anything else.

GlitterMoo : closer is less risky but also much more expensive to get in and increases much slower compared to prices further away which it MAY get to

sendhelp horse618 : i was just giving an over summary thanks for taking the time to explain more(i was too lazy)

AD999 : Buying call options at this high price is rewarding only when the report and forward guidance are above expectations. It’s a risky thing to do now (unless you wish to bet on the report).

財富自由等著我 OP sendhelp : 謝謝你解說～

財富自由等著我 OP horse618 : 謝謝你解說