Let me start by saying, I am not an expert nor is this financial advice.
What is NVDA?
Nvidia is a dominant supplier of artificial intelligence (AI) hardware and software.
Its professional line of GPUs are used in workstations for applications in such fields as architecture, engineering and construction, media and entertainment, automotive, scientific research, and manufacturing design
2 Reasons I invested in NVDA.
1. People Love Gaming.
Most people I know love gaming to some extent. In addition to the love people have for gaming, a huge amount of gamers play on PC or use gaming computers. Those gaming PC’s often use Nvidia products.
2. AI isn’t going anywhere.
The use of AI has become an integral part in many businesses. AI is part of our daily lives and only growing. Nvidia produces the hardware and software to help power the AI’s we use.
The Jump.
On Jan 9th NVDA Opened at $524.20 then jumped to $533 and is still rising.
Being a shareholder I was ecstatic about the jump but also figured since there was a random jump the stock might fall from that peak.
The Trade.
Although Ive mostly lost money trading options, this time was different.
I bought 1 NVDA put contract for $665.03 with the expectation that NVDA would dip a little or maybe even drop to $526. I WAS WRONG!
Almost lost everything in less than 20 min
NVDA just kept rising. In less than 10 minutes the option was -$200 and falling.
The bittersweet part was my shares were growing in value but the loss from the option would basically deplete that.
Saved by the Limit Sell.
During the panic of losing everything, I placed a Limit Sell for $10.25.
NVDA put up a fight but it dipped right at market close. The contract ended up getting fulfilled at $10.33.
Im beyond thankful because NVVDA share price jumped to $545.69!
What happen? Made $371.89
I started trading options less than a month ago, until now all Ive done is lose money.
The rationale was the losses are just the cost of learning.
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I work part time at a mall. Start small, just start somewhere.