NVDA calls seem very cheap with low IV (~40%) relative to the stock price and movement. It seems like IV will probably increase closer to the split date? What are your guys' thoughts on something like $1150 C 6/21?
Would rather get level headed advice here over WSB
Posted by luckynum81
12 Comments
6/21 expiration and 10% OTM? That’s a big risk but possibly profitable depending on the cost.
As a holder of 1200C Aug ’24 and a large amount of shares the time to buy calls was 4 weeks ago when they were 1/4 the price they are now.
It might work out, but I certainly wouldn’t be betting my money on that short of an expiration.
how many do you want? I’ll write a couple for you. My risk tolerance lets me write 6 for 43 vol
OSS
Calls are allways a good buy, really never loose money.
If you don’t know what direction its going to go then why bet on direction.
If you know NVDA will be making good earnings, why not go with leaps for the future? Most here Don’t know how to manage short term calls.
You will end up with profit and magically lose it all.
The split is already priced in.
They are so expensive I could never pull the trigger
If you want to express a long view of NVDA with options why would you buy long calls and not a ratio spread like a ZEBRA or a synthetic long.
IV for LEAPS will go up briefly after the split (that won’t matter too much for deep ITM LEAPS) – but generally I expect IV to go down though after the split for earlier dates.
Yeah as long as you don’t plan on holding till expiration. Although the buy frenzy might halt short term while people wait for the stock split, I doubt this is going to be the high between now and June 21st. If you buy on Tuesday I’d sell as soon as your up.
IV is low because it’s right after earnings
Better than puts