This is crazy. Someone is willing to pay me $390 to agree to buy $NVDA at $150, about 20% below where it trades today.
It's called a cash-secured put, and here's how it works:
Nvidia is trading around $188. You sell the $150 put expiring January 15, 2027 and collect $3.90 per share, or $390 for one contract.
In exchange, you agree to buy 100 shares at $150 if NVDA closes below that price at expiration. You set aside $15,000 in cash to cover it, which is why it's called "cash-secured."
The buyer is paying for the right to sell you shares at $150. The $390 is yours to keep no matter what happens.
One of two things happens:
1. NVDA stays above $150 and the put expires worthless. You keep $390 on $15,000 of capital, a 2.6% return in 70 days, or about 13.6% annualized.
2. NVDA closes below $150 and you get assigned. You buy 100 shares at $150, but after the premium your real cost basis is $146.10, about 22% below today's price.
Nvidia reports earnings after the close on November 17, before this put expires, so a big move in either direction is on the table.
The risk is real. If NVDA fell to $130, you'd be down about $1,610 on paper. Someone who bought 100 shares today would be down about $5,850.
Not financial advice. I share these for education.
Warren Buffett said:
"Big opportunities come infrequently. When it's raining gold, reach for a bucket, not a thimble."
Here are 6 stocks that just got cheaper 👇🏻
1/6 Nvidia $NVDA
🔴 25% below its all time high!
I'm only going to say this once.
If you're under the age of 50, this dip is a generational buying opportunity if you believe in the power of artificial intelligence.
Here are 10 AI stocks on my radar:
1. $AVGO - Broadcom
About 38% below its 52-week high. AI semiconductor revenue grew 221% to $16.7B last quarter, Broadcom guided fiscal Q4 AI revenue to $21.7B, and Hock Tan said it has secured the supply to double AI revenue again to about $115B in fiscal 2027.
$GOOGL is getting RIDICULOUS.
Now look at this:
• Most OVERSOLD RSI reading EVER (21.1)
• CHEAPEST valuation EVER (~14.5x P/E)
• Google Cloud revenue SURGING 103%
• MASSIVE growth engines:
Search, YouTube, Gemini, TPUs & Waymo
Meanwhile, some of the biggest names in investing have disclosed positions in Alphabet:
• Warren Buffett's Berkshire Hathaway
• Nancy Pelosi's household
• Stanley Druckenmiller
• David Tepper
All while shares are down more than 30% from all-time highs.
This isnt an opportunity you come across everyday...
Why wont this work from here?
1. Gold is crashing
2. Silver is crashing
3. Stocks are crashing
4. Bitcoin is crashing
Hey @grok , when EVERYTHING crashes together, what does that REALLY mean? And what happens NEXT?