Jeezus! That’s a pretty hefty loss you’re running right there.
What was your thesis for taking such a large position in far dated calls on NVDA? Is that thesis still valid? If so, do nothing, hold and wait for your thesis to pay off. If your thesis is definitely wrong and you’ve soured on the prospects of those calls, dump them all and recover as much capital as you can. If you are in-between, neither sure of the upside nor downside potential, maybe reduce your exposure but keep some of the calls?
Makyoman69 on
Here is your advice: if you are stressed by this situation, you shouldn’t be trading options.
klp08 on
Only been trading options for ~3 months. But from what I see you have time for price to move to ~135, that’s when you’ll at least break even.
Mortimer_Duke87 on
The best thing is, you can still get out of the trade and have over a 1/4 of a million dollars. Some trades are losers and best to learn from. Whatever your setup was, you have no rules set in place to protect your capital. If you continue with like this, you wont be in the game much longer.
I do agree with your directional play on NVDA. I am. Ot much of a leaps guy myself.
ConsumptionofClocks on
It’s Nvidia with an expiration date 5 months out. Hold for now
austex34 on
Hold
magoomba92 on
Things could get a lot worse for OP.
I could see the SMCI news dragging down all semis going into the week.
Turbulent_Goal8132 on
You need to hold. You have a LONG time frame until they expire. If the theta decays a little then so be it….thats the bet you made. You can either definitely lose $125k or wait out your wager. You’re in…all or nothing
jpnc97 on
Turn them into debit spreads to reduce losses.
imparooo on
Not financial advice, but one thing you could do to fight the decay is to sell shorter term calls on a spike, effectively creating a diagonal spread.
Sep 27 135c traded last for 1.49. you could do the same each month, changing strikes as appropriate. Or even on a weekly basis.
The main drawback of this strategy is that it will cap your gains, and give you limited protection if NVDA tanks. So it will work best if NVDA trends higher over time.
Ideally though you would want to just close this trade and reopen a more favorable one, after understanding how September and October are going to shape up.
Carrying a loss this large on your books will negatively impact your mental capital and will likely lead you to a suboptimal outome.
MrP0000 on
You already posted on wsb. This is not a crystal ball, really no one can tell you where nvdia is going in that time frame.
If your thesis at purchase still true, hold. Else sell.
If you just played earning with no thesis, exit and don’t play options/earning.
Seek therapy if you can’t handle the loss.
TheSchemingPanda on
Tough position to be in, but at least you got a couple of more months before Theta starts eating into your premiums.
For now I’d say close out the $110 calls in mid sept, then start selling calls against other two and collect some pennies.
Kitchen-Reindeer6509 on
Double down
Acrobatic-Ostrich168 on
I always wonder why people buy leaps so far in the money… just buy regular shares at that point!
That being said I’d hold onto these still, so much can happen in the next 6 months, most Nvidia news have even positive despite slightly less revenue growth (still phenomenal) and Blackwell will pump the stock too
North49r on
Look at the chart. Does it look like NVDA is currently going up or down? Earnings pullback but imo we’re going back up. $132 before your expiry. We just don’t know when.
jon166 on
Can someone explain how he is losing money?
Here is my best explanation but I’m noob, he bought the option to buy the stocks at those prices before the expired date, but the stock is still above those prices, so why does it show a massive loss? Other stats are making it a loss?
Prince_Chunk on
Hold for now, you have time
Shortsightedbot on
Half a mil on Robinhood lmao
Commercial-Echo1098 on
Q4. Just think of Q4.
kts1977 on
Hold, clench your butt cheeks and don’t buy when IV is so high.
SnooRabbits2450 on
If you can afford to throw half a mil into call options for a single stock, you don’t need advice from Reddit.
etch-bot on
I’d be hold until next ER minimum. Got to let that IV build again. You bought leaps in a high IV environ. If you think NVDA will be higher in the next 3 months than it is now, hold.
Vanidiculum on
If you’re asking redditors what you should do, you shouldn’t be trading
Shughost7 on
How are you spending this much man. Just buy shares next time. For now just hodl.
Physical-News8888 on
You are on a 4x leverage, considering theta you are actually using a 2x leverage,why not switch to nvdl,then at least time maybe your friend
WhatNow_23 on
Remin me! 1 week
WhatNow_23 on
Remind me! 1 week
Various-Ducks on
Why do you keep posting this? You got 1000 replies already what are you thinking is gonna happen
actmax on
Hold
SEEANDDONTSQUEAL on
My advice you have some time to learn options and how they work and how they affect you. You should have just bought shares and would have made similar profits than in contracts that far out.
Iduknow2020 on
Maybe ask Salman Khan.
Bagafeet on
Nana is ಠಗಠ
PlutosGrasp on
You bought them so you must think that ~150 by 2025 is a good price and now they’re 25% on sale so why wouldn’t you buy more ?
maximus_TheGreat on
OH am sorry.
maximus_TheGreat on
I would not be worried. You are going to make millions on it.
35 Comments
Jeezus! That’s a pretty hefty loss you’re running right there.
What was your thesis for taking such a large position in far dated calls on NVDA? Is that thesis still valid? If so, do nothing, hold and wait for your thesis to pay off. If your thesis is definitely wrong and you’ve soured on the prospects of those calls, dump them all and recover as much capital as you can. If you are in-between, neither sure of the upside nor downside potential, maybe reduce your exposure but keep some of the calls?
Here is your advice: if you are stressed by this situation, you shouldn’t be trading options.
Only been trading options for ~3 months. But from what I see you have time for price to move to ~135, that’s when you’ll at least break even.
The best thing is, you can still get out of the trade and have over a 1/4 of a million dollars. Some trades are losers and best to learn from. Whatever your setup was, you have no rules set in place to protect your capital. If you continue with like this, you wont be in the game much longer.
I do agree with your directional play on NVDA. I am. Ot much of a leaps guy myself.
It’s Nvidia with an expiration date 5 months out. Hold for now
Hold
Things could get a lot worse for OP.
I could see the SMCI news dragging down all semis going into the week.
You need to hold. You have a LONG time frame until they expire. If the theta decays a little then so be it….thats the bet you made. You can either definitely lose $125k or wait out your wager. You’re in…all or nothing
Turn them into debit spreads to reduce losses.
Not financial advice, but one thing you could do to fight the decay is to sell shorter term calls on a spike, effectively creating a diagonal spread.
Sep 27 135c traded last for 1.49. you could do the same each month, changing strikes as appropriate. Or even on a weekly basis.
The main drawback of this strategy is that it will cap your gains, and give you limited protection if NVDA tanks. So it will work best if NVDA trends higher over time.
Ideally though you would want to just close this trade and reopen a more favorable one, after understanding how September and October are going to shape up.
Carrying a loss this large on your books will negatively impact your mental capital and will likely lead you to a suboptimal outome.
You already posted on wsb. This is not a crystal ball, really no one can tell you where nvdia is going in that time frame.
If your thesis at purchase still true, hold. Else sell.
If you just played earning with no thesis, exit and don’t play options/earning.
Seek therapy if you can’t handle the loss.
Tough position to be in, but at least you got a couple of more months before Theta starts eating into your premiums.
For now I’d say close out the $110 calls in mid sept, then start selling calls against other two and collect some pennies.
Double down
I always wonder why people buy leaps so far in the money… just buy regular shares at that point!
That being said I’d hold onto these still, so much can happen in the next 6 months, most Nvidia news have even positive despite slightly less revenue growth (still phenomenal) and Blackwell will pump the stock too
Look at the chart. Does it look like NVDA is currently going up or down? Earnings pullback but imo we’re going back up. $132 before your expiry. We just don’t know when.
Can someone explain how he is losing money?
Here is my best explanation but I’m noob, he bought the option to buy the stocks at those prices before the expired date, but the stock is still above those prices, so why does it show a massive loss? Other stats are making it a loss?
Hold for now, you have time
Half a mil on Robinhood lmao
Q4. Just think of Q4.
Hold, clench your butt cheeks and don’t buy when IV is so high.
If you can afford to throw half a mil into call options for a single stock, you don’t need advice from Reddit.
I’d be hold until next ER minimum. Got to let that IV build again. You bought leaps in a high IV environ. If you think NVDA will be higher in the next 3 months than it is now, hold.
If you’re asking redditors what you should do, you shouldn’t be trading
How are you spending this much man. Just buy shares next time. For now just hodl.
You are on a 4x leverage, considering theta you are actually using a 2x leverage,why not switch to nvdl,then at least time maybe your friend
Remin me! 1 week
Remind me! 1 week
Why do you keep posting this? You got 1000 replies already what are you thinking is gonna happen
Hold
My advice you have some time to learn options and how they work and how they affect you. You should have just bought shares and would have made similar profits than in contracts that far out.
Maybe ask Salman Khan.
Nana is ಠಗಠ
You bought them so you must think that ~150 by 2025 is a good price and now they’re 25% on sale so why wouldn’t you buy more ?
OH am sorry.
I would not be worried. You are going to make millions on it.