re: Nebius - NBIS - AI Infrastructure Company

Depends on the hour
I’ll provide insight later.

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this is pretty crushing for all of you that had calls expecting the price to continue to rise in r at least stay around $130, right?

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First off, it all depends on where you bought the options.
Secondly, elevated IV keeps the prices of contracts elevated.
Finally, yes, date and strike price matter a ton.

If you have $140 calls expiring today then they're worth almost nothing. You'll lose 100% by the end of the day.
But most of us try to stay fairly conservative by selecting expiry dates that give us plenty of room to work with.
While my options may be down 33% today from my avg cost. there's plenty of time for recovery.

I may roll half of mine up and in for a play.
I have the $140s

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Rookie question about options: when someone says they’re going to roll or move their calls to a farther out expiration, does this simply mean a simultaneous sell of, say Oct expiry and buy of Dec expiry?

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Yes. Think of it this way….you sell when you’re down, but buying when the price is down for a further out date. You do this when you believe the stock will eventually go back up in a relatively short period of time

If you sell your contracts, you should have an option to sell to close or roll. If you roll them, you get a two part transaction presented to you - 1.) You choose how many you want to sell (the expiration date and strike price are set to the current values. 2.) You choose the details of what you are rolling to - expiry, strike price, and price. Your price will be either a debit, or a credit, depending on the difference in the worth of the new/old contracts.

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Yes. Think of it this way….you sell when you’re down, but buying when the price is down for a further out date. You do this when you believe the stock will eventually go back up in a relatively short period of time

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Put another way, you're buying yourself time to let the stock recover, rather than letting the contract expire and be worth zero.

If you roll when you're in the green, you can often take profits AND push the date out. In this situation, everyone is down. The value of the calls going down, not only because the stock price is going down, but because we're getting close to the expiration date. You have to balance the two.

I have some $135 calls that are set to expire on 11/21. I will hang on to them for a little while and see if the stock price comes up. We have the earnings call later this month, so my hope is that there will be a run up to the earnings report and a boost afterwards that will change my contracts to green. We'll see. The alternative is to roll them up now and take my losses in the hopes that they turn green by the new expiration date.

If you could move it up about $10 a share, that would be nice...

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Thank you for this, very helpful. I’ve got 11/21 150’s that aren’t looking too good right now

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I’m not rolling any of my 11/21’s…..don’t think of them on a daily like you would Octobers. We have a big announcement coming between now and then