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NVIDIA (NVDA) To $300? Here's Exactly How I'm Trading It

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NVIDIA (NVDA) To $300? Here's Exactly How I'm Trading It

Transcript

390 segments

0:00

What if I told you that despite Nvidia

0:01

already being worth trillions of

0:03

dollars, I still think there's more room

0:05

to run. And I see the stock going to

0:06

$300 per share. So, I think a lot of

0:09

investors right now, they're looking at

0:10

Nvidia, they think that they missed it.

0:12

They think that the stock is kind of

0:14

gone, but that's very far from the

0:16

truth. Honestly, we are still in the

0:18

early innings of AI, and Nvidia has a

0:20

lot more room to run. I look at Nvidia

0:22

and see a company that still benefits

0:23

from one of the biggest technology

0:25

spending cycles in all of history. So

0:27

today I'm going to explain to you first

0:29

of all why Nvidia deserves to be $300

0:31

per share and then the two option

0:33

strategies that I'm doing on it. I think

0:35

the option strategies that I'm going to

0:36

show you will be very simple, very

0:38

boring. You might not want to stick

0:39

around, but simple and boring stuff is

0:41

what works and that's what I'm a really

0:43

big fan of. I'm a fan of consistency and

0:45

stability. So let's first of all talk

0:46

about Nvidia and then I'll show you the

0:48

two option strategies that I'm using on

0:49

Nvidia to generate income. All right. So

0:52

for starters, most people think that AI

0:54

has already happened and um honestly

0:56

chat GBPT just launched like four years

0:58

ago guys. I know things are changing

1:00

very fast but Chat GPT is 4 years ago

1:04

with their launch and Nvidia is still in

1:06

their growth stages. So most companies

1:08

they still don't really have AI

1:10

integrated into workflows and during the

1:12

gold rush you guys know like I made this

1:14

example before but the people digging

1:16

for gold were not the ones winning. I

1:18

mean some were but majority weren't. And

1:21

the people that were actually winning

1:22

were picks and shovels and Levis's

1:24

jeans. I mean, people had to go work and

1:26

they were wearing jeans. That was the

1:28

style back then. So, digging for gold

1:30

can work, but selling picks and shovels

1:32

works a lot better. And that is what I'm

1:34

seeing here with Nvidia. That's not a

1:36

secret. That's not new. Everyone talks

1:38

about that. But there is a simple way to

1:40

just generate income. And I think with

1:42

fairly low risk, it's just selling

1:44

options. Both selling put options and

1:46

covered calls. So if you look at the

1:48

spending from Microsoft which is

1:50

billions of dollars and Amazon, Google

1:53

and Meta, they're spending billions of

1:55

dollars and they're buying chips and

1:56

Nvidia is supplying the entire industry.

1:58

So as long as this continues, which I

2:00

know there's doubters saying that it's

2:01

not going to continue, but I'm pretty

2:03

sure it will continue. AI is a very

2:05

important part of the future. It's very

2:08

important for productivity and there's

2:10

just many reasons that it's going to

2:11

continue. I'm not going to go down the

2:13

rabbit hole. Do your own research, but

2:15

right, AI spending is only going to go

2:16

up. So, a big reason that I believe that

2:18

Nvidia will eventually reach 300. It's

2:20

not really of, you know, if it's going

2:21

to reach 100, it's really just when when

2:23

will it reach $300 per share is because

2:25

investors are focused on today, but

2:28

really you should be focusing on

2:29

tomorrow. So, where is Nvidia headed? Is

2:31

revenue growing? Right? It's growing

2:33

tremendously. And Blackwell is driving

2:34

that demand today. So, companies are

2:36

spending billions, literally billions to

2:38

build out AI infrastructure. And

2:40

Blackwell chips help with training and

2:42

they run large AI models for efficiency.

2:45

And that's going to be very important.

2:47

So the the story really isn't stopping

2:49

here. The story is only continuing and

2:50

Nvidia already has Reuben coming next.

2:53

So followed by future architectures

2:54

after that. So we have a step-by-step

2:56

plan for Nvidia to reach higher and

2:58

higher revenue which will make sure that

3:01

the stock continues to grow in the long

3:02

term, right? We're probably going to

3:04

reach $500 per share eventually. This is

3:06

going to be a 10 trillion company. Just,

3:08

you know, will it be 10 trillion in 2030

3:09

or 2035 or the heck 2028? That is

3:13

uncertain. But as an option seller, you

3:15

don't really have to be certain on the

3:17

stock price to just sell options and and

3:19

collect income. I mean, that's what I've

3:20

been doing for the last 10 years. So, I

3:22

want to go through the step by step

3:23

here. I'm going to show you kind of like

3:24

the entry. Nvidia over the last like one

3:27

month here is down and a lot of

3:29

investors are upset. But I'm not upset.

3:31

I'm I'm actually happy because I'm going

3:33

to go to trade invidia options. I'm

3:35

going to show you why I'm happy. First

3:36

of all, when a stock goes down, that's a

3:38

good thing because it's becoming

3:40

cheaper, right? I get that we build

3:41

wealth when stocks rise and they

3:43

skyrocket, but they don't have to

3:45

continuously do that to build wealth. In

3:47

fact, every pullback is healthy and then

3:49

every pullback is an opportunity. So,

3:51

you know, when you get in during the

3:52

pullback, that's where you really build

3:54

wealth. It's like growing your muscles,

3:55

right? You don't grow the biceps and the

3:57

triceps in the gym. You grow them when

3:59

you are resting. And the same thing is

4:01

kind of true for stocks. You don't

4:02

really you do grow when they skyrocket,

4:04

but you also grow when they pull back

4:06

and then you buy during that pullback.

4:08

Okay? So, let me show you kind of how to

4:09

get paid to buy during a pullback. Okay,

4:12

I'm going to go for an expiration date.

4:13

I like selling monthly options. I know a

4:15

lot of people, they want to do weekly

4:17

options. In my Discord community, I do

4:19

weekly options, but I like monthly

4:21

options even more because a monthly

4:23

option is a lot less work to manage. And

4:25

my whole goal is just passive income.

4:27

That is my goal with option trading. My

4:29

goal is stability. I want it to be

4:31

passive income and I don't want to take

4:33

on a lot of risk. Then, that's not the

4:35

best for me. the best would be something

4:37

more consistent and stable. So, what I'm

4:39

looking at is just selling a put option.

4:40

I already have a put option at 200 here.

4:42

It's actually going really well and I'm

4:44

going to show you kind of what this

4:45

looks like at a $200 strike price. The

4:48

reason why I'm picking 200 is first of

4:50

all, I think Nvidia has great support at

4:52

$200 per share. And it would be amazing

4:55

because when you sell a put option, you

4:57

essentially get, you know, assigned if

4:58

it's below 200. And what better than

5:01

going from 200 in terms of your average

5:03

price to a price target of 300? That's

5:06

kind of my goal with this trade.

5:07

Longterm, it's going to take time and

5:09

obviously I'm not a financial adviser.

5:10

It might take 6 12 months. It might take

5:12

more than that and there is a risk that

5:14

um it goes well below 200, but I'm not

5:17

really concerned. I'm not concerned

5:18

because Nvidia has so much going for it

5:21

and it has a low PE ratio, a low forward

5:24

PE ratio, excuse me. So, I think this is

5:26

really a value stock going forward. So

5:28

when I look at the $200 strike price

5:30

with a delta.39, that means that there's

5:32

basically like a 39% chance of getting

5:34

assigned. Okay, that means there's a 39%

5:36

chance of this happening and a 61%

5:39

chance of this not happen. So really

5:41

there's only two things that can happen.

5:42

If Nvidia is above 200, 770 is mine. I

5:45

mean, that's money in the pocket. Money

5:48

in the pocket, right? And cool. If it is

5:51

and then nothing happens, right? And

5:52

then the next Monday after July 17,

5:55

which would be July 20th, I would just

5:56

sell another put option. Simple as that.

5:58

Rinse and repeat. But if it is under

6:01

$200, then I will get assigned. So early

6:05

assignment really doesn't happen all

6:07

that much. It doesn't make sense for the

6:10

person exercising the option. So don't

6:12

be too concerned. Also, you should be

6:14

cash secured, meaning that you have the

6:16

cash to take assignment if you get

6:18

assigned. Right? So this example, that

6:20

would be $20,000. Now, I'm going to show

6:22

you a cheaper strategy as well, but

6:24

selling puts would be $20,000. So, you

6:26

got to have some money to make money in

6:28

selling puts. The other strategy I'm

6:30

going to show you will be riskier

6:31

strategy, but it will require less

6:33

money. Okay? I'm actually going to show

6:34

you how to turn a put option into a put

6:37

credit spread. So, we'll go over that in

6:39

just a second. So, a $200 put option,

6:42

basically the endgame, the management

6:43

strategy here is there is not too much

6:46

to manage. You sell the position. If

6:48

Nvidia is above, great. If it's below

6:50

200, you should want to get assigned.

6:53

Okay? Because great stock, great price,

6:56

and my price targeted 300. So, if I get

6:59

assigned at 200, amazing. I still get

7:02

the premium. And actually, that's that's

7:03

even more amazing because my average

7:05

cost is going to be $19,230,

7:08

right? Or 25 roughly. If I collect 770,

7:11

it'll be 19230. So, essentially, if I

7:15

get assigned, my average cost will

7:17

actually be lower than the strike price.

7:18

And that's just because I'm accounting

7:19

for the premium that I collect. Okay,

7:21

you want to account for premium

7:23

collected in your average cost. So, you

7:26

can technically get your average cost

7:27

lower and lower and lower. And I mean,

7:29

if you keep selling put options, your

7:31

average cost will continue to go down,

7:33

right? So, if I sell a 200 put, I don't

7:35

get assigned and I collect 770 and I do

7:38

that again at 200 and I don't get

7:40

assigned again for, you know, 10 bucks,

7:42

then I'm already up $17.70.

7:45

And I would, you know, lower my average

7:47

cost to, you know, it would be like 182

7:50

and 30 cents, something like that,

7:52

right? So that is what I really like

7:54

about selling put options is if it

7:56

happens, great. I get a good quality

7:58

company that I like. If it doesn't

8:00

happen, then I have collective premium.

8:02

This is what I really love about option

8:03

selling is because I'm really chasing

8:05

income. That's what I want. Uh I know a

8:07

lot of people want fast growth and I

8:10

think that you can achieve good growth.

8:12

You won't get rich fast, but I'd rather

8:15

get rich kind of slower and more

8:17

predictably rather than, you know, going

8:20

for high-risisk plays and and

8:22

experiencing a bunch of volatility. Sign

8:23

me up for slow and steady, basically,

8:25

right? This that's what I teach in my

8:26

program. That's what I like to do.

8:28

That's what I help other people do as

8:30

well. Okay, so this is like the first

8:31

strategy. The second strategy is a put

8:34

credit spread. A put credit spread is um

8:37

a little bit different. Okay, it's kind

8:38

of similar in the way because I can

8:40

actually keep this $200 strike price. I

8:42

don't have to do anything. All I have to

8:43

do now is buy a put option to kind of

8:46

protect my downside. Okay, so if I buy a

8:49

190 put option here, in this example,

8:51

this would be a 200 and 190 put credit

8:55

spread where the 200 is sold, the 190 is

8:58

bought, and a put credit spread is

9:00

created. In this case, there is a Simon

9:02

risk, but that's not really the concern

9:05

here because you will be closing out

9:07

this trade on the last couple of days if

9:09

it's between the two strike prices

9:11

because then you have a you do have

9:12

assignment risk and if you don't have

9:14

the money to do it, you're not in a good

9:16

situation. The broker will most likely

9:18

close you out though if you don't have

9:19

the cash. But the real real concern here

9:21

is not necessarily the assignment risk.

9:23

It's more so if Nvidia were to come down

9:26

to 190, you're not taking assignment.

9:28

you're not going to get 100 shares

9:29

because a put credit spread is not for

9:32

acquiring the stock. It's to really bet

9:34

that the stock won't go below the strike

9:36

price that you choose. And if it goes to

9:38

190 or lower, you will lose 100% of the

9:42

collateral. Now, the collateral here is

9:44

pretty nice because it's not too much.

9:46

Okay, the collateral here is $660.

9:49

Okay, that is the collateral. And the

9:50

reason why it's 660 is because the

9:52

difference between 200 and 190 is

9:55

$1,000. But the premium generated here

9:57

is 340. Okay. So instead of risking a

10:00

th00and you're risking 660. So

10:02

essentially you see your risk and your

10:04

return here. Okay. Your return in this

10:06

case would be 340 on this trade example.

10:09

And 660 is the maximum loss that you can

10:11

lose on this trade. Okay. So I find this

10:15

to be a very attractive strategy to use

10:18

part of your portfolio. Obviously

10:19

diversify and understand risk

10:21

management. That is something I do cover

10:23

in my videos. You know I'm not a

10:24

financial adviser. Take this as

10:26

educational purposes only. Very

10:28

important to understand how to diversify

10:30

in your portfolio. This is a risky

10:32

position. However, I have found

10:34

personally that this has worked um very

10:36

well and you know about 5% of my

10:39

portfolio in terms of diversification. I

10:41

use 5% of my money for put credit

10:43

spreads. Okay, I'm comfortable with

10:45

that. I think that uh more than that is

10:47

probably a bit uncomfortable, but this

10:49

has been a strategy that I have used.

10:51

And as you can see here, I mean, if I

10:53

had a, you know, let's say that I have a

10:55

$100,000 portfolio and then I use $5,000

10:58

of it and that $5,000 portion I can grow

11:01

to, you know, 7K, 8K, 9K, 10K, and and

11:05

so on and so forth. To me, it makes a

11:06

lot of sense to use smaller amount of

11:08

capital because the strategy is riskier,

11:10

but then to use it as more of my

11:11

aggressive capital that I'm trying to

11:13

kind of take on to to bigger goals. So,

11:16

kind of like a combination. This would

11:17

be more small account focused with a

11:20

small amount of capital. And then just

11:21

selling a put option would be more big

11:23

account focused where you could put

11:25

bigger money in place because

11:26

essentially when going back to selling a

11:28

put option, selling a put option is is

11:30

kind of similar to stock because if you

11:32

get assigned now you have the stock. So

11:34

you don't need to do too much other than

11:36

hold the stock because I think Nvidia is

11:38

going to be a $300 stock. From there on

11:40

you just really buy and hold. Okay. So,

11:43

if you are new to option trading, I want

11:44

to summarize kind of what a sell put is

11:46

and a put credit spread. So, a sell put

11:49

allows you to generate income while

11:50

waiting for the stock to go down. The

11:52

risk is assignment, but that risk of

11:55

assignment isn't a big deal if you want

11:56

to own the stock anyways. The strategy

11:59

can reduce your cost basis, meaning that

12:01

you acquire the stock for less than the

12:03

strike price. And also, if the strike

12:04

price is less than the stock price,

12:06

which it is, right? I mean, in in

12:08

Nvidia's case, Nvidia is at 206. So if I

12:11

go for 200, my strike price is lower

12:13

than the stock and then my average cost

12:15

if I get assigned is even lower than

12:17

that, right? So I'm getting a really

12:19

really big benefit. At Goldman Sachs,

12:20

many investors were using selling puts

12:23

and this was pretty much a core strategy

12:25

that a lot of big fish were using. Uh

12:27

the big fish actually do really simple

12:29

stuff. So a lot of people think that

12:31

hedge funds and private wealth

12:32

management and you know Goldman Sachs

12:34

and Wall Street is using complicated

12:36

strategies. Some are, but to be honest,

12:38

if you're a beginner, if you're learning

12:39

option trading, then sticking to the

12:41

basics can do very very well. I'm just

12:44

doing majority basics in my portfolio. I

12:46

am using some LEAP options, which I have

12:49

a video on YouTube here. I'll I'll leave

12:51

you kind of my playlist of courses that

12:53

I have made. I made a course this year

12:55

on LEAPS, on covered calls, and on

12:56

selling puts. These are really the core

12:58

strategies that you should be using if

13:00

you're looking to generate income and

13:02

build wealth using option trading. So,

13:04

I'll leave the videos for you here. Make

13:06

sure that you subscribe and I hope that

13:08

you enjoy this simple process to what I

13:10

am doing within video.

Interactive Summary

This video presents a bullish case for Nvidia stock, arguing that it still has significant growth potential in the long term, with a price target of $300 per share. The speaker outlines why AI infrastructure spending remains a strong driver for revenue and demonstrates two income-generating option strategies: selling cash-secured puts and utilizing put credit spreads. These methods focus on consistency, stability, and passive income generation rather than speculative, high-risk trades, making them suitable for different account sizes and risk tolerances.

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