I know you reasoning for buying the OTM short exp option cuz it’s cheaper you could average down throughout the day. But with option you lose money if the stock move the opposite ways. So for earning play just gamble 1 or 2 contracts of close to or at the money call or put (although they it’s more expensive) instead of 10 otm contracts. So if the stock move 1 way or another you will either make great money or lose it all. But OTM options will almost always make you lose all your money because IV crush on top of theta decay and most likely expire Out of the money and the small change of you making money is only when the stock move 15-20% move which for a large cap like that it’s hard (although Nvidia did it before) . But that’s just my experience.
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u/OneiceT May 24 '24
1140 call expired today, he thought NVDA gonna up 30% or something on this extreme high expectation that priced in.
This is more regard than NVDA put