Direxion Daily NVDA Bull 2X Shares Stock Discussion

• Varriee : may I know what are the disadvantages of holding ETF stocks overnight and not selling on the same day, given the fact if I estimate the certain stock to have good potentials ?

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• Moomoo Research OP Varriee : Sure. Holding an ETF overnight increases your exposure to market risks for a longer period. If you believe in the long-term potential of the ETF, this might be acceptable, but it does increase the likelihood of experiencing short-term losses.
  Leveraged and inverse ETFs are based on the daily performance of the stock price.The daily rebalancing and effects of compounding may cause returns to diverge quite substantially from the performance of the underlying stock, especially if these products are held over multiple days or more, leading to more decay and underperformance compared to expectations.

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• Southgate : Actually I’m also new to leveraged and inverse ETFs.
  May I know where the decay and underperformance is channel to? Is it calculated and reflected into the stock price?

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• 104867332 : Will this etf has any expiry date?

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• kettlebell : I think it will go up not as much

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• ひな☆彡 SOXL OP kettlebell : Yeah, it will pull back eventually.

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• ひな☆彡 SOXL OP : My plan now is that if SOXL reaches the 60s, which I think may be possible this year, I am going to sell my call Options. If it reaches the 70s, I am going to sell 20% of my shares; then, around the 90s (next year), I will sell 30% of my shares; if it reaches 100, I will keep around 10% of the shares, then sell the rest.

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• ひな☆彡 SOXL OP : I thought about getting more protective puts, but I could also do… buying SOXS instead. Sometimes, I'm just too busy and not looking into option chains due to work, etc.

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• 152382205 : Same idea as I thought

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• 10baggerbamm OP : so cue ball cramer, who refuses to take a stance on Nvidia. with his bullshit you know what I say own it don't trade It which means you bought it wrote it up wrote it all the way back down and now he's saying well it looks like a double top to me and you know how far it fell last time. but he doesn't tell you to buy puts in head she doesn't tell you to sell half your position because he's useless. if there is a delay in Blackwell this stock is going to go down 30% because they will have to restate earnings going forward to be lower than expectations. one would think somebody with all of his experience or any of these other bobbleheads on TV would come out and make a statement telling people hedge your position by puts if you choose to hold it through the conference call number one number two sell half of your position because if there's any guidance lower it's going to get butchered, and then you can buy back at a lower price with the half that you sold. but nobody on TV wants to take a firm position on this company. I'm the only one telling you buy out of the money puts

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• Warren Buffed : Nice p/l

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• ひな☆彡 SOXL OP : I might sell some of the protection options and call options if they reach their potential.

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• Guy who cried wolf : how do I do options properly?

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• ひな☆彡 SOXL OP Guy who cried wolf : My main strategy for options are protective put.

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• 102362254 : Investing in leveraged ETFs of high-liquidity stocks like Nvidia might seem tempting, but it's important to think about how much risk you can handle and how long you plan to invest. If you're a medium-level investor, be careful as these ETFs can swing a lot in value and you could lose a lot of money. They're better suited for experienced investors who are okay with taking bigger risks and keeping a close eye on their investments. Always think about the potential to earn more versus the chance of losing more before deciding to invest in leveraged ETFs

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• Southgate : Was hesitating after losing a sizeable chunk of my capital shorting it.
  After reading this article, immediately deposit fresh fund to put up an order to fill this position
  It’s quite obvious $NVIDIA (NVDA.US)$ is on an upward trajectory all the way to earnings on 28/8, very similar to price pattern of $Taiwan Semiconductor (TSM.US)$ .
  Then just when my order is filled, prices start to fall sharply. Oh well.

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• ArcherZ : I have been investing in NVidia since 2020, buy on dip and hold. If anyone read the article about a week or so about Trump urging Democratic to embrace Bitcoins and cryptocurrency. He made a comment about enhancing the capacity to mine these coins. To do that, you need AI development, a fast processor, and a strong power grid. So, which company supplies over 60% of these processors for AI development? Even Elon Musk, a big advocate of Bitcoin and has his own AI development companies, purchases all of his stocks from NVidia. As a long-term investor, one needs to understand the importance of Maintenance Margin for times of market decline.

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• 151307827 :

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• 151307827 : Following

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• 10baggerbamm : August 28th are Nvidia earnings.. nothing has been confirmed directly by Nvidia about a delay. it's just speculative and rumored by super micro in their earnings..they  came out and said they are going to be experiencing supply chain difficulties for gpus. the gpus they received come from Nvidia. on the 28th there earnings are going to be spectacular for this quarter The X Factor is is Blackwell delayed that's the first question number two how long will it be delayed for number three if one and two hold true then logically you have to guide down with earnings. Blackwell was supposedly going to be released late in Q4 that means it would positively affect fourth quarter earnings it would definitely affect first quarter earnings so if there is a delay of 3 months that means... drum roll... you're going to have to guide lower for 4th quarter and q1.
  if this happens Nvidia is going to be retouching its lows of Monday one week ago. so you have a decision to make holding this because I'm telling you when it falls it's brutal this is 200% magnification of a drop of common. so you may look into buying a put to head your position that's number one number two if you have a huge profit that you experienced sell half number three you can ignore me I don't know what I'm talking about it will never happen and hope for the best.

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• ひな☆彡 SOXL OP 10baggerbamm : Yes, I have done Put in case of SOXL. For this one what would you do? Sep 20 60 PUT?

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• 10baggerbamm ひな☆彡 SOXL OP : I'm going further out of the money it took me a week to get filled I was sitting on the bid the whole time. when you go deep out of the money the spreads are basically 50% so if you buy it at $2 it's bidding a dollar you've already lost 50% of your money. because of the movement yesterday right now the lower moving average on the Bollinger bands would be $62 so a guy down from Jensen would result in an earnings Miss and Q4 and q1 I think it would go right through 62. so I would use the strength in 8:30 is going to be another big number with CPI depending upon what happens there will determine the at least the open of the market but I would put an order in between the spread the bid in the ask to at least hedge your long position. what's troubling to me is that all these bobbleheads on TV while they will glance over Nvidia with the possibility of a delay they never talk about the ramifications of confirmation of a delay and how it will impact the actual earnings. and again I believe just common sense if you delay a product that was supposedly going to be sold in the 4th quarter late fourth quarter you're going to miss 4th quarter and you're going to miss first quarter. and when Jensen talked with Zuckerberg couple of weeks ago during the interview Zuckerberg said he's reducing purchases of capex through the balance of the year.. but would accelerate capex next year again.. WHY??? and I think the answer is Blackwell's delayed and he's not going to buy a different chip he wants the latest in the greatest. I can't imagine Wall Street giving Jensen a pass saying you know you're such a nice guy we're not going to sink the stock on a short-term blip that you're going to miss fourth quarter and you're going to miss first quarter. if it does get hammered  back the truck up and BUY NVDU.

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• ひな☆彡 SOXL OP 10baggerbamm : I'm unsurprised that this will get down again before becoming fully uptrended. A risk hedge strategy can often be complex, so thank you for your insight… I understand that it's cheaper, and the spread is larger further out of money.

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• ひな☆彡 SOXL OP ひな☆彡 SOXL OP : Based on what you do, you wait quite long for the order to be filled for risk headsge put. I guess its like having own insurance. Again thanks for your help.

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