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The thing with NVIDIA though is that the IV is so high and so are premiums. I spent a few hours looking for a better trade than that, though I think it's pretty solid.
I think SPY calls can possibly be much better than NVIDIA calls. The market doesn't expect the stock market to go up significantly in the next few years, but I think theres a chance it will assuming timelines are short. Here's the SPY YoY growth during the internet boom in the 90s.
Year 2000 saw a -9.7% return ($86.54) 1999: +20.4% ($95.88) 1998: +28.7% ($79.65) 1997: +33.5% ($61.89) 1996: +22.5% ($46.37) 1995: +38.0% ($37.85) 1994: +0.4% ($27.42)
Here we see that from any two year period from 1995-1999, the stock market went up anywhere from 50% to 70%.
Thus, I don't think it's unreasonable to think SPY has a good chance of going up 50% - 70% by Jan 15 2027 (to be fair, the past two years had a YoY growth of ~25%)
If you buy a $855 Strike price call for that date and SPY increases 50% by then you get a 12x return. If SPY increases 70% you get a 62x return.
If you buy the highest Strike Price call for that day at $910 and SPY increase by 70%, you get an 83x return.
Something to think about at least. At this time I’m going to buy long dated SPY calls for 2-3 years out at the 800 range. Nvidia calls still look good but the premiums are just so expensive because of the companies recent massive growth and volatility, so I think SPY calls are the better option.I'm still thinking about how to hedge incase the upcoming chaos turns the market sour (perhaps a Taiwanese blockade, or NVIDIA profits being hurt by increasing government interference)
This is looking like a February 2020 moment.
Assuming short timelines, I wonder how much NVIDIA's stock will increase and if anywhere near a 100x return is possible.
The further out and higher strike price NVIDIA call I could find is at 290$ SP, dated Jan 15 2027, at $13.25. If NVIDIA goes to a 10T market cap I get an 8x return on investment, if the company goes to a 15T market cap I get a ~20x return on investment.
I'm not sure how realistic it is for NVIDIA to increase past a 15 Trillion Market cap. Plus, increased government intervention seems like it would negatively impact profits.
Polymarket has gotten lots of attention in recent months, but I was shocked to find out how much inefficency there really is.
There was a market titled "What will Trump say during his RNC speech?" that was up a few days ago. At 7 pm, the transcript for the speech was leaked, and you could easily find it by a google search or looking at the polymarket discord.
Trump started his speech at 9:30, and it was immediately that he was using the script. One entire hour into the speech I stumbled onto the transcript on Polymarkets discord. Despite the word "prisons" being in the leaked transcript that Trump was halfway through, Polymarket only gave it a 70% chance of being said. I quickly went to bet and made free money.
To be fair it was a smaller market with 800k in bets, but nonetheless I was shocked on how easy it was to make risk-free money.
You said you've been buying calls on the general stock market. Instead, why not buy calls on 20-30 tech companies that'll likely benefit from slow takeoff?
This is very speculative, but if Anthropic/OpenAI/Google/Meta do achieve TAI and we head towards a slow takeoff, geopoltical risk from China may be a concern. To the best of my knowledge China is a few years behind us on AI, and doesn't have the compute capability to catch up. I doubt China will just sit back and let the US achieve such a strategic advantage, and may invade Taiwan to cut out our supply of GPUs.