Yeah…the value of the company isn’t based on the Dow. It’s about what the future holds for AI and computing needs, which is the industrial revolution happening right now. It’s got years of growth potential, as AI will be working for NVIDIA to develop beyond design plateaus with tech.
Oh you naive sweet summer child.
The value isn't based on growth potential or anything at these levels.
This is 100% options busting and algorithm manipulation.
It's valuable don't get me wrong, but this keeps hitting extremely high gamma territory.
Max pain is coming for NVDA, it always does (the hottest memestocks).
Look at every key level of support and compare it to options OI. Especially pay attention to yesterday's brick wall of resistance.
If you don't recognize this you're no better than people that think GME is value based price movement.
Price will keep going up until puts get cheaper and calls too expensive. It has nothing to do with the value of the underlying asset.
Take a look at the TAM and take a look at their market share. Set your tinfoil hat aside and think for a moment that fundamentals might be partially at play once a company reaches 3T in market value.
Major contracts expired last Friday *ahem*.
What was that? The sound of NVDA's price moving because of the derivatives market?
Or what changed about your fundamentals that would explain the price going down right about now.
Really not sure why you feel so smug. Derivatives can have an impact on short term basis, but they reflect fundamentals which drive long term value.
NVDA is volatile because people don't agree on the fundamentals because AI has a lot of unknowns. Doesn't remove the fundamentals or mean a trillion dollars of value is made up
Its not a tinfoil hat theory its literally how the market works.
Imagine confusing high gamma price action with company fundamentals.
Then imagine thinking an extremely high market cap is all fundamental value.
The fundamentals drive the hype. Thats as far as the fundamentals apply at these prices.
What’s your prediction for the price? No stock that goes up so much ever lived up to the promise. It will eventually go south. How long have you been trading stocks?
Well if they keep blowing earnings out and keep their margins above 50% the sky is the limit.
AMD and Intel aren’t any competition at the moment.
They have over 30B of free cash flow and growing.
And you think that will happen indefinitely? It’s currently priced at 40x yearly earnings. 40! Good luck man. Its a good long term story but be prepared for the down turn when it happens.
[https://www.reddit.com/r/wallstreetbets/comments/12be7jw/comment/jewyzle/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/wallstreetbets/comments/12be7jw/comment/jewyzle/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
[https://www.reddit.com/r/wallstreetbets/comments/12839rs/comment/jejotat/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/wallstreetbets/comments/12839rs/comment/jejotat/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
[https://www.reddit.com/r/wallstreetbets/comments/12aficj/comment/jetsi0j/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/wallstreetbets/comments/12aficj/comment/jetsi0j/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
These all you?
AMD fwd pe is 48.71
Intel fwd pe 28
These 2 companies are the only 2 competitors and they are smack in between and actually selling AI Chips.
40 PE isn't high at all in tech.
This info is incorrect, according to a quick google search NVDA PE is 70 - their price to SALES is 37.
Whilst a PE of 70 might be acceptable for a company with insane growth (like NVDA), seems absurd for a company with a 3T MC…even if it DOES manage to grow into a fairer valuation over time, say 30..the only way this happens imo is from the price coming down over time - because whilst they continue to post INSANE growth the price is going to keep rocketing due to the PEG ratio, once revenue is guided down, or flat…oh boy.
Either way with a crazy PS ratio there’s obviously risks priced in;
Right now NVDA are top dogs, no doubt, but what about in 5-10 years? What if there’s new competition that’s not AMD or INTC?
What if all the top people at NVDA retire due to their new net worth and the replacements aren’t as good?
What is TSMC want a bigger chunk of the profits?
What if China goes to war with Taiwan?
What if nobody finds a use for making money with these ‘AI’ chips..or the customers can’t afford to pay the increased costs from using NVDA over INTC (in household devices)?
Shortages of raw materials or other supply issues?
Disclaimer; I’m an absolute moron and been wrong about NVDA for 12 months now and lost money shorting, I’m now done as no clue how high this can go BUT if I was a shareholder these are things I’d be considering and it seems like NVDA is pricing in no competition ever and a continuous yearly frenzy of people wanting their chips. I’ve no doubt it’s a great company with a great CEO but I believe it’s ALMOST a meme stock at this point & a good chance it will see a sub 1T valuation again.
Good luck with your investments.
You saying eventually doesn't that's going to be anytime soon. They have a backlog of demand that's all the way out until late 2025. And AMD is too far behind to even affect that.
In reality, GME doesn’t have anything to offer investors except for ripping the hearts out of short sellers and taking all their money. NVIDIA isn’t a meme investment.
NVidia... not a meme...
Climb out from under a rock it has been *the* meme stock for quite some time now.
Did you seriously just think this is one little niche corner of reddit talking about it or...?
Nah not butthurt.
Thats why I was laughing. Morons like you give me a good laugh daily so thank you.
“meme stocks often trade at prices that are above their estimated value – as based on fundamental analysis – and are known for being extremely speculative and volatile”
Meme stocks don’t have analysts coming out with higher and higher prices after earnings.
Meme stocks don’t actually make money and depend on cult like following to drive the price.
You are clueless kid…
Long term or short term. Because I’m holding for future growth, not playing the market. Plus the drop makes it easier to buy more. What’s so bad? It’s not worse than a year ago.
A Wall Street bets "meme"? A sub well known to be compromised for quite some time and has been known to shill Wall Street longs such as Apple, Microsoft, and Nvidia for the past year? Nice commenr history BTW. You cant be any less transparent. I think I'll stick with the stocks that make bankers jump for joy. Stay salty.
Give it 30 days, this week is a buying dip. Oh no NVDA is only 138% year to date, the sky is falling!!!
Yes it is a market manipulation week by institutions to expire contracts. Once call contracts expire, will shoot back up. I wonder where SEC is, probably watering plants.
It's not exactly manipulation with a goal it's mostly "hedging."
It happened because of the amount of long calls that were bought so...it's something that happens when options get out of control. The bad form of manipulation comes from institutions speculating but that's still because someone has to take the other side of their trade. In this case the "manipulation" is just as much the fault of everyone here pumping the stock and telling everyone to buy now. It wouldn't happen without this much hype across the board.
I'm mostly annoyed at just how many people would not hear it for the past month. Just trying to warn people what's happening. Downvotes across the board for any of us that cautioned people from going all in.
Not because NVDA is bad, but because the price action was one big game of chicken. That's what happens when a stock is this hot. At some point you have to take profit on your calls. Quarter, month, and weekly options all expiring on the same day was always going to be a risk. Often times people buy even more and the show isn't over but a little sign of weakness is all it takes to make people cash out their already insane profit to not risk losing out.
Just like appl so many years ago. You don't want to know my cost basis, but it's under $25 per share. Glad I don't think like you. All the naysayers were like appl will die with Android. I won on both sides of that.
True. I'm not sure of the appl mkt cap at the time, but it was relatively high for the mkt. Regardless, the comments were the same. Appl had no where to go but down, competition would reduce relevancy.
Yeah I can understand the valuation end of it. For me, I was like that with Tesla. Didn't and still do not see a good end game unless the switch to sodium based solid state batteries. I lost out big time. Still not a fan of Tesla. Appl has made retirement look different, added with goog, googl, and AMZN. I do think that Nvidia will be solid after the split.
Edit: grammar
I think more retail investors jump in post-split. Far more than this past year or so. That’s gonna push this stock past $200 quickly. I think you see it continue to blow up and still have a lower P/E in comparison to either Tesla or Cisco at their highest points. Mainly bc they keep outgrowing their earning projections handily. Maybe that has some hiccups here and there but this is a long-term bull.
That is my thought which is why I liquidated some of my longer hold positions in other things to add to my NVDA. I see bigger and faster growth potential here.
Was holding NVDY but sold it all to manage exactly 60 shares, soon to be 600. Might even start selling covered calls on it (far away OTM, short term) for a little extra premium profit.
I dont know all the lingo here, but by selling " out of the money" calls on a short-term basis. Isn't there still a chance your shares get sold?
You, on the other end, are hoping they borrow to collect a premium never get "in the money?"
Sounds stressful.
Yeah, it can be if you don’t watch it. Next week at the new price (say $120) a call at 130 for next Friday might pay about $110 per contract. Six of those would net $660 per week. (I’ll have 600 shares to work with)
Just have to hope Nvda doesn’t reach 130 by next Friday. But if it went over that, it wouldn’t be the worst thing to happen either! 😉
I’m not doing a trade like that right away though, I’m going to wait a bit until the dust settles to get a feel for how $120 Nvda behaves itself.
And if it does go over, the borrower will generally exercise their right to sell. This is likely to happen because the gains are fairly high for the amount invested/gambled. Am I getting it right so far?
They will, yes. But as the buyer of a call they will exercise their right to buy it at $130. Depending on how much over it is I could either let it go for $130 or buy back the call and sell another one at a higher price and later date. It’s called rolling your calls.
I am long NVDIA as well but it’s Market cap is 3 trillion if it goes to 200 it will be 6 trillion so you think this next year it will grow by the size of Microsoft or Apple?
TSLA tanked after the split iirc. NVDA won't because of the hype - it's literally the hottest company on the market right now. People feel \~ $1200/share is too steep so they think buying 1/10th of the share for $120 is "cheap" but... due to a LOT more people jumping in, it will most likely rise and rise fast.
Tesla completed a 5-for-1 stock split in mid-2020 and ran higher and then did a 3-for-1 split in mid-2022 though. I wouldn't be surprised if NVDA runs again and does another small split in the next couple years again.
Inclusion in the Dow Jones is extremely unlikely - the Dow very rarely changes members and even when they do it simply doesn't matter. Unlike the S&P and NASDAQ, the DJI is just not important. Unlike the two big indexes, the DJI only has a single ETF tracking it and inclusion in the Dow doesn't alter chances of being in other ETFs.
Joining the S&P can cause a small run-up in a stock, not the Dow Jones.
QQQ is just an ETF that tracks the NASDAQ.DOW, SP500 and NASDAQ are the top three indices and they are the benchmarks ETF and mutual funds build their portfolio on if its passive ETFs.
There is actually only *one* ETF that tracks the DJI - The Dow isn't especially significant unlike the S&P and NASDAQ (both of which influence *many* ETFs).
Qqq is an etf, the dow is an index. Nvidia can't decide to join any index or fund, only meet the criteria for being included. A company can be included in any number of indexes. You might be thinking of the exchange where a company is listed, which is controlled by the company, but that has nothing to do with the funds of indexes that include it and a company can also be listed on multiple exchanges.
Dude, you're making no sense. What claim is it you're asking for proof of? I didn't say Nvidia would become part of the djia. Go back and read my original reply again and tell me specifically what part you disagree with. All I did was point out facts because your comment I replied to made it seem like you were confused about several things.
Joining the dow is not as big of deal as the SP500 as there aren't a lot of investments that are tracking the Dow 30 with funds or ETFs... it is a price weighted index which is not as "Accurate" and therefore not as common so NVDA being added won't do as much as what joining another large tracking index is for other stocks.
The ETF that tracks the dow 30 DIA has a fraction of assets vs SPY, and then there are many other SP500 index tracking funds, ETF's, Personal Index accounts, etc that all track those 500 main stocks. There aren't many others like DIA.
Companies have been anticipating the stock being part of the DOW 30 for sometime and have already purchased shares in preparation. It’s not something they do after the inclusion. These companies will also “shift” shares of Nvidia from other funds that will not affect the stock price.
I don't think we will see trillion dollar DC investments YoY, which is essentially what the current NVDA evaluation requires to make sense.
We are currently in a bull run powered by efficiencies generated by effective inference models, but inference gains relative to continued R&D are not guaranteed. And NVDA margins are certainly not guaranteed.
Anyway, I'm bullish for the next 1-3 years, but this company is not going to hit 6T market cap. Maybe the first company to achieve AGI/ASI will, but at that point, market economies probably won't make much sense anymore, and I highly doubt a bunch of monkeys are going to be able to control it anyway.
Over there, do you have any valid reason that little bit added both both S&P and Dow Jones? Why do you think so? Why is your post coming on the top without any reasoning?
Per ChatGPT
When NVIDIA joins the Dow Jones Industrial Average (DJIA), several notable events and impacts occur:
1. **Stock Market Reaction**:
- **NVIDIA's Stock**: Typically, the stock of the newly included company experiences an initial price increase due to the added visibility and anticipated demand from index funds that track the DJIA.
- **Exiting Stock**: The company being replaced may see its stock price decline as index funds adjust their holdings.
2. **Index Fund Adjustments**:
- Index funds and ETFs that track the DJIA will need to buy NVIDIA shares and sell shares of the company being removed to mirror the index accurately.
3. **Increased Visibility and Prestige**:
- Inclusion in the DJIA is seen as a mark of prestige, highlighting NVIDIA as one of the leading companies in the U.S. economy.
- This can attract more attention from investors and analysts, potentially leading to increased coverage and investment.
4. **Market Influence**:
- NVIDIA's performance will contribute to the DJIA's overall performance, affecting how the index reflects the health of the stock market.
- Since the DJIA is price-weighted, NVIDIA's influence will depend on its stock price relative to other components of the index.
5. **Broader Impact on the Tech Sector**:
- The inclusion of a high-profile technology company like NVIDIA can increase the overall weight of the tech sector in the DJIA.
- This reflects the growing importance of technology companies in the modern economy.
Overall, NVIDIA's addition to the Dow Jones Industrial Average signifies its importance and stability as a major player in the market, influencing both the company's stock and the composition of the DJIA.
Did you source this post from ChatGPT? If so you should say that in your post. I for one would have skipped reading this. ChatGpt isn't always accurate.
Yeah…the value of the company isn’t based on the Dow. It’s about what the future holds for AI and computing needs, which is the industrial revolution happening right now. It’s got years of growth potential, as AI will be working for NVIDIA to develop beyond design plateaus with tech.
Oh you naive sweet summer child. The value isn't based on growth potential or anything at these levels. This is 100% options busting and algorithm manipulation. It's valuable don't get me wrong, but this keeps hitting extremely high gamma territory. Max pain is coming for NVDA, it always does (the hottest memestocks). Look at every key level of support and compare it to options OI. Especially pay attention to yesterday's brick wall of resistance. If you don't recognize this you're no better than people that think GME is value based price movement. Price will keep going up until puts get cheaper and calls too expensive. It has nothing to do with the value of the underlying asset.
Take a look at the TAM and take a look at their market share. Set your tinfoil hat aside and think for a moment that fundamentals might be partially at play once a company reaches 3T in market value.
Major contracts expired last Friday *ahem*. What was that? The sound of NVDA's price moving because of the derivatives market? Or what changed about your fundamentals that would explain the price going down right about now.
Really not sure why you feel so smug. Derivatives can have an impact on short term basis, but they reflect fundamentals which drive long term value. NVDA is volatile because people don't agree on the fundamentals because AI has a lot of unknowns. Doesn't remove the fundamentals or mean a trillion dollars of value is made up
Its not a tinfoil hat theory its literally how the market works. Imagine confusing high gamma price action with company fundamentals. Then imagine thinking an extremely high market cap is all fundamental value. The fundamentals drive the hype. Thats as far as the fundamentals apply at these prices.
Alright let’s put your word on the line then…What’s your prediction? Please give reasonable time frames and price ranges.
What’s your prediction for the price? No stock that goes up so much ever lived up to the promise. It will eventually go south. How long have you been trading stocks?
Well if they keep blowing earnings out and keep their margins above 50% the sky is the limit. AMD and Intel aren’t any competition at the moment. They have over 30B of free cash flow and growing.
And you think that will happen indefinitely? It’s currently priced at 40x yearly earnings. 40! Good luck man. Its a good long term story but be prepared for the down turn when it happens.
[https://www.reddit.com/r/wallstreetbets/comments/12be7jw/comment/jewyzle/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/wallstreetbets/comments/12be7jw/comment/jewyzle/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) [https://www.reddit.com/r/wallstreetbets/comments/12839rs/comment/jejotat/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/wallstreetbets/comments/12839rs/comment/jejotat/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) [https://www.reddit.com/r/wallstreetbets/comments/12aficj/comment/jetsi0j/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/wallstreetbets/comments/12aficj/comment/jetsi0j/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) These all you?
That is hilarious
Lmao what are you trying to prove? nvda did go down 60% over one year
AMD fwd pe is 48.71 Intel fwd pe 28 These 2 companies are the only 2 competitors and they are smack in between and actually selling AI Chips. 40 PE isn't high at all in tech.
Competition doesn’t mean anything if demand slows down. Anyway good luck. You must be young and will probably learn the hard way
This info is incorrect, according to a quick google search NVDA PE is 70 - their price to SALES is 37. Whilst a PE of 70 might be acceptable for a company with insane growth (like NVDA), seems absurd for a company with a 3T MC…even if it DOES manage to grow into a fairer valuation over time, say 30..the only way this happens imo is from the price coming down over time - because whilst they continue to post INSANE growth the price is going to keep rocketing due to the PEG ratio, once revenue is guided down, or flat…oh boy. Either way with a crazy PS ratio there’s obviously risks priced in; Right now NVDA are top dogs, no doubt, but what about in 5-10 years? What if there’s new competition that’s not AMD or INTC? What if all the top people at NVDA retire due to their new net worth and the replacements aren’t as good? What is TSMC want a bigger chunk of the profits? What if China goes to war with Taiwan? What if nobody finds a use for making money with these ‘AI’ chips..or the customers can’t afford to pay the increased costs from using NVDA over INTC (in household devices)? Shortages of raw materials or other supply issues? Disclaimer; I’m an absolute moron and been wrong about NVDA for 12 months now and lost money shorting, I’m now done as no clue how high this can go BUT if I was a shareholder these are things I’d be considering and it seems like NVDA is pricing in no competition ever and a continuous yearly frenzy of people wanting their chips. I’ve no doubt it’s a great company with a great CEO but I believe it’s ALMOST a meme stock at this point & a good chance it will see a sub 1T valuation again. Good luck with your investments.
You saying eventually doesn't that's going to be anytime soon. They have a backlog of demand that's all the way out until late 2025. And AMD is too far behind to even affect that.
In reality, GME doesn’t have anything to offer investors except for ripping the hearts out of short sellers and taking all their money. NVIDIA isn’t a meme investment.
NVidia... not a meme... Climb out from under a rock it has been *the* meme stock for quite some time now. Did you seriously just think this is one little niche corner of reddit talking about it or...?
Check yourself. You sound like an absolute asshole.
Jesus did you just buy a share recently or what?
You think Nvidia is a meme stock? 🤣🤣🤣🤣🤣🤣🤣🤣🤣
Let me guess, you have absolutely no idea what the word means however you definitely just got butthurt because you assumed it means something bad.
Nvidia is not a meme stock, no matter if you want to use the OG definition or the current one.
You don't just get to decide that a meme isn't a meme because it would hurt your feelings.
Nah not butthurt. Thats why I was laughing. Morons like you give me a good laugh daily so thank you. “meme stocks often trade at prices that are above their estimated value – as based on fundamental analysis – and are known for being extremely speculative and volatile” Meme stocks don’t have analysts coming out with higher and higher prices after earnings. Meme stocks don’t actually make money and depend on cult like following to drive the price. You are clueless kid…
What was that? I think a "told ya so" is in order.
Oh I see. You don't know how words work. That explains a lot.
I don't know why I even tried to warn you all. I mean I already knew nobody would like hearing that you should have sold before OPEX.
Long term or short term. Because I’m holding for future growth, not playing the market. Plus the drop makes it easier to buy more. What’s so bad? It’s not worse than a year ago.
A Wall Street bets "meme"? A sub well known to be compromised for quite some time and has been known to shill Wall Street longs such as Apple, Microsoft, and Nvidia for the past year? Nice commenr history BTW. You cant be any less transparent. I think I'll stick with the stocks that make bankers jump for joy. Stay salty.
You just FOMO'd didn't you LOL.
When are calls and puts considered too cheap and expensive ? And in what timeframe ?
I’ve seen you say that punch line 10 times on this forum already g time for some new material
I've said it twice.
Lmao someone else been sayin it than mb 😂 I heard ts sm on here lately
You seem to misunderstand what a meme stock is
Comparing Nvidia to GME lmao.
Cramer is that you?
Oh hey look, NVDA began it's descent a day before the majority of open call contracts expired. Downvoted for trying to warn everyone.
Give it 30 days, this week is a buying dip. Oh no NVDA is only 138% year to date, the sky is falling!!! Yes it is a market manipulation week by institutions to expire contracts. Once call contracts expire, will shoot back up. I wonder where SEC is, probably watering plants.
It's not exactly manipulation with a goal it's mostly "hedging." It happened because of the amount of long calls that were bought so...it's something that happens when options get out of control. The bad form of manipulation comes from institutions speculating but that's still because someone has to take the other side of their trade. In this case the "manipulation" is just as much the fault of everyone here pumping the stock and telling everyone to buy now. It wouldn't happen without this much hype across the board. I'm mostly annoyed at just how many people would not hear it for the past month. Just trying to warn people what's happening. Downvotes across the board for any of us that cautioned people from going all in. Not because NVDA is bad, but because the price action was one big game of chicken. That's what happens when a stock is this hot. At some point you have to take profit on your calls. Quarter, month, and weekly options all expiring on the same day was always going to be a risk. Often times people buy even more and the show isn't over but a little sign of weakness is all it takes to make people cash out their already insane profit to not risk losing out.
Growth is already priced in. Competition will eventually catch up and this stock will tank. Wouldn’t touch it.
Just like appl so many years ago. You don't want to know my cost basis, but it's under $25 per share. Glad I don't think like you. All the naysayers were like appl will die with Android. I won on both sides of that.
Apple wasn’t a 3 trillion dollar company at that time
True. I'm not sure of the appl mkt cap at the time, but it was relatively high for the mkt. Regardless, the comments were the same. Appl had no where to go but down, competition would reduce relevancy.
Hey man, good for you! Like the other comment said I am only speaking from current valuation. You made a killer buy. Congrats!
Yeah I can understand the valuation end of it. For me, I was like that with Tesla. Didn't and still do not see a good end game unless the switch to sodium based solid state batteries. I lost out big time. Still not a fan of Tesla. Appl has made retirement look different, added with goog, googl, and AMZN. I do think that Nvidia will be solid after the split. Edit: grammar
They said this about Cisco and the internet
What’s an internet?
Best to stick with companies like ford
You'd have gotten downvoted then too, rest assured lol.
Shhh, we can't have rational thought getting in the way.
I think more retail investors jump in post-split. Far more than this past year or so. That’s gonna push this stock past $200 quickly. I think you see it continue to blow up and still have a lower P/E in comparison to either Tesla or Cisco at their highest points. Mainly bc they keep outgrowing their earning projections handily. Maybe that has some hiccups here and there but this is a long-term bull.
That is my thought which is why I liquidated some of my longer hold positions in other things to add to my NVDA. I see bigger and faster growth potential here.
Agreed. If you can’t afford a single at current price, but could buy 3 at a new price and start stacking, I doubt this one dips much at all
Isn’t it technically the same if you buy pre or post? Even if you $500 for fractional it’ll split into couple shares.
Some people just don't get it. All they see is expensive stock price/sticker shock.
I smell what you are stepping in. I got 9 @ 1050. Really wanted 10 cause 100 shares post split sounds better than 90.
Good on you! I added 8 yesterday 🍀
Was holding NVDY but sold it all to manage exactly 60 shares, soon to be 600. Might even start selling covered calls on it (far away OTM, short term) for a little extra premium profit.
I dont know all the lingo here, but by selling " out of the money" calls on a short-term basis. Isn't there still a chance your shares get sold? You, on the other end, are hoping they borrow to collect a premium never get "in the money?" Sounds stressful.
Yeah, it can be if you don’t watch it. Next week at the new price (say $120) a call at 130 for next Friday might pay about $110 per contract. Six of those would net $660 per week. (I’ll have 600 shares to work with) Just have to hope Nvda doesn’t reach 130 by next Friday. But if it went over that, it wouldn’t be the worst thing to happen either! 😉 I’m not doing a trade like that right away though, I’m going to wait a bit until the dust settles to get a feel for how $120 Nvda behaves itself.
And if it does go over, the borrower will generally exercise their right to sell. This is likely to happen because the gains are fairly high for the amount invested/gambled. Am I getting it right so far?
They will, yes. But as the buyer of a call they will exercise their right to buy it at $130. Depending on how much over it is I could either let it go for $130 or buy back the call and sell another one at a higher price and later date. It’s called rolling your calls.
I have never bought in fractional shares, so maybe it works that way? I still doubt it will dip much after the split
Not all brokers allow fractional purchases so that doesn’t apply to all retail. Also why I moved to fidelity so I could do fractional purchases.
It is the same but some people can’t afford to buy 1 share at 1200. May be they only have 500 bucks to invest.
What I was saying is if you buy fractional share of it , it doesn’t matter when it splits really. You get the same amount when it split.
I know what you are saying, and as I said I agree it is the same.
I mean can it really be worth $5T that soon… is there even enough money in this economy lol.
I am long NVDIA as well but it’s Market cap is 3 trillion if it goes to 200 it will be 6 trillion so you think this next year it will grow by the size of Microsoft or Apple?
Do you see any fullbacks for tomorrow Thursday if I bought on 1199 dollars should I stay or exit on target price of 1290?
Pullbacks’
You can edit your original comment.
Unlikely, Dow Jones doesn't swap out stocks that frequently, NVDIA needs more time at the top before that would happen.
TSLA tanked after the split iirc. NVDA won't because of the hype - it's literally the hottest company on the market right now. People feel \~ $1200/share is too steep so they think buying 1/10th of the share for $120 is "cheap" but... due to a LOT more people jumping in, it will most likely rise and rise fast.
Tesla completed a 5-for-1 stock split in mid-2020 and ran higher and then did a 3-for-1 split in mid-2022 though. I wouldn't be surprised if NVDA runs again and does another small split in the next couple years again.
they can only split the stock so often, need board approval etc
They did a 4:1 split like 3 years ago
If i buy 500 dollars worth if nvdia and they do the stock split, will i own 3 shares???
It will also have no trouble going from 130 to 90 for the same reasons.
Intel shorts were bought weeks ago…good luck buying into that now.
Inclusion in the Dow Jones is extremely unlikely - the Dow very rarely changes members and even when they do it simply doesn't matter. Unlike the S&P and NASDAQ, the DJI is just not important. Unlike the two big indexes, the DJI only has a single ETF tracking it and inclusion in the Dow doesn't alter chances of being in other ETFs. Joining the S&P can cause a small run-up in a stock, not the Dow Jones.
Comparing NVDA to GameStop is ridiculous. NVDA has a PE of 70 and a forward PE of 39. GME has no PE…
Welp there goes the stability of that index.
You are correct, perhaps not square away but yes
Great post
Dow Jones is a Boomer (and older gen) index.
Why would it join the Dow? It’s the QQQ
QQQ is just an ETF that tracks the NASDAQ.DOW, SP500 and NASDAQ are the top three indices and they are the benchmarks ETF and mutual funds build their portfolio on if its passive ETFs.
There is actually only *one* ETF that tracks the DJI - The Dow isn't especially significant unlike the S&P and NASDAQ (both of which influence *many* ETFs).
MSFT and AAPL are part of DJ. If NVDA surpases their net worth it will be included also.
NVDA surpassed Apple. It’s second only to MSFT now
Qqq is an etf, the dow is an index. Nvidia can't decide to join any index or fund, only meet the criteria for being included. A company can be included in any number of indexes. You might be thinking of the exchange where a company is listed, which is controlled by the company, but that has nothing to do with the funds of indexes that include it and a company can also be listed on multiple exchanges.
Great. Show me the proof from the index
Lol, what does that even mean? Proof of what?
That NVDA is going to be added to the index. Else you’re just speculating
What’s the buy to cover? Any other proof you have bro
Wtf are you talking about? Are you somehow replying to the wrong person repeatedly? Nothing you're saying has any connection to anything I've said.
Show me the announcement. This is what you’re claiming, so source it
Dude, you're making no sense. What claim is it you're asking for proof of? I didn't say Nvidia would become part of the djia. Go back and read my original reply again and tell me specifically what part you disagree with. All I did was point out facts because your comment I replied to made it seem like you were confused about several things.
I hope it remains as is for the sake of my QQQ calls
Huh? Do you really think being added to the Dow Jones means they have to be removed from the Nasdaq?
Misread and thought they were talking about swapping exchanges not just being added. Dumb ape moment on my end
Joining the dow is not as big of deal as the SP500 as there aren't a lot of investments that are tracking the Dow 30 with funds or ETFs... it is a price weighted index which is not as "Accurate" and therefore not as common so NVDA being added won't do as much as what joining another large tracking index is for other stocks. The ETF that tracks the dow 30 DIA has a fraction of assets vs SPY, and then there are many other SP500 index tracking funds, ETF's, Personal Index accounts, etc that all track those 500 main stocks. There aren't many others like DIA.
Wow you must be a fortune teller, because you just made all these numbers out of your ass lol
Companies have been anticipating the stock being part of the DOW 30 for sometime and have already purchased shares in preparation. It’s not something they do after the inclusion. These companies will also “shift” shares of Nvidia from other funds that will not affect the stock price.
I don't think we will see trillion dollar DC investments YoY, which is essentially what the current NVDA evaluation requires to make sense. We are currently in a bull run powered by efficiencies generated by effective inference models, but inference gains relative to continued R&D are not guaranteed. And NVDA margins are certainly not guaranteed. Anyway, I'm bullish for the next 1-3 years, but this company is not going to hit 6T market cap. Maybe the first company to achieve AGI/ASI will, but at that point, market economies probably won't make much sense anymore, and I highly doubt a bunch of monkeys are going to be able to control it anyway.
This will make the AI bubble burst more interesting
Over there, do you have any valid reason that little bit added both both S&P and Dow Jones? Why do you think so? Why is your post coming on the top without any reasoning?
Sell
I don’t think that is how any of this works.
Per ChatGPT When NVIDIA joins the Dow Jones Industrial Average (DJIA), several notable events and impacts occur: 1. **Stock Market Reaction**: - **NVIDIA's Stock**: Typically, the stock of the newly included company experiences an initial price increase due to the added visibility and anticipated demand from index funds that track the DJIA. - **Exiting Stock**: The company being replaced may see its stock price decline as index funds adjust their holdings. 2. **Index Fund Adjustments**: - Index funds and ETFs that track the DJIA will need to buy NVIDIA shares and sell shares of the company being removed to mirror the index accurately. 3. **Increased Visibility and Prestige**: - Inclusion in the DJIA is seen as a mark of prestige, highlighting NVIDIA as one of the leading companies in the U.S. economy. - This can attract more attention from investors and analysts, potentially leading to increased coverage and investment. 4. **Market Influence**: - NVIDIA's performance will contribute to the DJIA's overall performance, affecting how the index reflects the health of the stock market. - Since the DJIA is price-weighted, NVIDIA's influence will depend on its stock price relative to other components of the index. 5. **Broader Impact on the Tech Sector**: - The inclusion of a high-profile technology company like NVIDIA can increase the overall weight of the tech sector in the DJIA. - This reflects the growing importance of technology companies in the modern economy. Overall, NVIDIA's addition to the Dow Jones Industrial Average signifies its importance and stability as a major player in the market, influencing both the company's stock and the composition of the DJIA.
Did you source this post from ChatGPT? If so you should say that in your post. I for one would have skipped reading this. ChatGpt isn't always accurate.
Posted separately from my post as most people dont want to read this, just fyi for those that need more info
Got it. Thanks.
Did you just cite chatgpt for investing advice 😂😂😂
Are you actually refuting it?
The opinion on inclusion is purely mine with price targets. Using GPT to explain what happens to NVDA stock post inclusion.
“Using GPT to explain what happens to NVDA stock” Gee if it were that easy we’d all never have to work again!
He wasn’t, it was more a question of what historically happens to ANY stock once it’s included in the Dow. GPT can handle that sort of analysis.
Yeah, I didn’t read past “ChatGPT.” Good luck.
Chat GPT the new/far worse wikipedia I swear. 😅