Nvidia - Called it! Stock Pops $75 / Share

Nvidia stock jumps $75 / share on strong AI earnings.

Nvidia - Called it! Stock Pops $75 / Share

In this article we noted that Nvidia's H100 chipset and the fact they are building a supercomputer that is approximately 18 exaflops  - that will dwarf every AI computer on the plant would be a good move on their share price.

The market gets it:

After hours NVDA is approaching $400 and increased in market capitalization by $200 Billion literally overnight.

What is wild is what the option price contracts  are going to do going into the open tomorrow.

Take the May 26 Call contract:

This contract closed at $1110 / contract (well the 'real' price is between bid/ask) and will open tomorrow approximately $85 in the money - giving it a open price tomorrow at about $8500/contract (will show as $85). If you have ever traded options that is the price per share and one contract controls 100 shares - so multiply it by 100.  In the long and short this contract will make  somewhere between a 800 - 900% return in one day.  However we expect this number to be larger because of various option greeks and a volatility index from the movement in price probably adding some percentile above that.

If you hold call contracts on NVDA sell on open because Theta time decay will brutally try to claw back your return.

Puts will be slaughtered expect a 98%  drop in value.

Not bad.

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