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Whelp, I guess those September NVDA call options I sold are going to get exercised. Who woulda guessed after the crypto fallout that "AI" would come along and b
by mikestew 3y ago
Whelp, I guess those September NVDA call options I sold are going to get exercised. Who woulda guessed after the crypto fallout that "AI" would come along and bump the price back up.
Record revenues, and a dividend of $0.04 on a $450 stock? That's not even worth the paperwork. For example, if you bought 100 shares, that's $45K. From that, around September $4 will show up in your account, which you have to pay taxes on. So $3 or so net on a $45,000 investment. Sure, there were stock buybacks, but why keep the token dividend around?
- kinghajj 3y agoShould have sold a call credit spread instead! For large shareholders, the dividend would still be worthwhile. From what I could find, Jensen has 1.3 million shares, so he'd receive over $200k in dividends this year. You might think that's chump change, but another source lists his salary at just under $1m; another 20% bump in liquid income is nothing to sneeze at.
- loeg 3y agoThis benefit is basically only to large shareholders who can't sell stock. Which might be insiders like Jensen and... anyone else? Everyone else can just sell, like, 0.0001% of their stock or whatever.
- catchnear4321 3y agomany times what a lot of people make in a year is nothing to sneeze at. especially when it is awarded for merely having a stack of papers.
- Vvector 3y agoThe stock is up 9% or $45/share after hours. Jensen just made $58 million. $200k doesn't pay his dry cleaning bill.
- wincy 3y agoGetting all those leather jackets cleaned is expensive!
- haldujai 3y ago> Should have sold a call credit spread instead! Why? > From what I could find, Jensen has 1.3 million shares, so he'd receive over $200k in dividends this year. You might think that's chump change, but another source lists his salary at just under $1m; another 20% bump in liquid income is nothing to sneeze at. Jensen Huang is worth $42 billion and has been a billionaire for probably a decade or so now? Any CEO with that net worth would use stock-secured loans/LOCs for liquidity. 200k is very much chump change.
- mikestew 3y agoShould have sold a call credit spread instead! I'll get right on that...after I go look up what that means. :-) I'm but a simple options trader who sells calls to unload stock I didn't want anymore anyway, and the premium is the icing on that cake. Left some money on the table this time, but I otherwise would have just sold the shares outright, and I did make some bank regardless. Gonna be missing that sweet, sweet $0.04 dividend, though.
- kinghajj 3y agoA call credit spread simply means buying an even more out-of-the-money call along with the one you sold. It would have reduced the premium collected, but the long call would appreciate on sudden moves like today's.
- mikestew 3y agoHmm…that actually sounds like a nice hedge. I’ll keep that in mind next time a similar situation comes up. Thanks.
- kikokikokiko 3y agoTheta gang ftw. But I would advise you to stay away from NVDA, as soon as the first quarter with flat or decreasing revenues comes (and it WILL come), the fall would be one to tell your grandchildren about.
- thomas8787 3y agoJensen is one of the largest shareholders. With over 80 million shares that's an over 3 million dollar dividend for him.
- epolanski 3y agoWait 80M shares? He's worth 4B $ then. Not bad.
- pyrrhotech 3y agoHe's worth way more than that. https://www.bloomberg.com/billionaires/profiles/jenhsun-huang/ https://www.bloomberg.com/billionaires/profiles/jenhsun-huan...
- epolanski 3y agoThis website is completely unusable on mobile.
- tyre 3y agojust wait until it’s $4bn and another $3m!
- _zoltan_ 3y agoI sold 600C for this Friday an hour or so before earnings. Free money with 168% IV.
- euazOn 3y agoIt is free money, until it isn’t!
- shpongled 3y agoI sold the 590 :)
- yieldcrv 3y agocollecting pennies in front of a steamroller
- quickthrower2 3y agoEspecially in a post-gamestonk world
- _zoltan_ 3y agovery different dynamics. - a GME ape :)
- _zoltan_ 3y agorisk/reward.
- theogravity 3y agoI sold the Fri 560C as a covered call. The high IV was free money for little risk.
- oatmeal1 3y agoIt's probably good for the long term share price if they can say in 20 years they've had a dividend for 20 years, even if that dividend was actually measly.
- AnotherGoodName 3y agoThere's a $25billion buyback this coming quarter. That's how they distribute profits these days.
- elbasti 3y agoA stock buyback trades certainty of wealth transfer (you're not sure the price will go up, or by how much!) for flexibility in when the investor takes the gains for purposes of fiscal planning.