re: Nebius - NBIS - AI Infrastructure Company

Kind of handcuffed right now to get more shares. I dream of the day we get a 2:1 or 10:1 split

May need some coachin. Let me get outta the woods .. literally

And back to the point, you didn’t spend 3,664 to buy those 31 shares at 118.20

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If I buy a $130 11/21 for let’s say $10. I pay $1000 for the option to sell 100 shares by 11/21 as long as it’s over $130.

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No, you’d be paying 1,000 in premium for the opportunity (but not the obligation) to BUY shares at $130 any time before market close on 11/21.

So if the stock is trading at $160 then it’s a smart decision to exercise those options at $130.

But very few people do this. It’s capital intensive. We buy and sell only the $1,000 (10.00) contract.

Furthermore, option selling is when you own the shares (minimum 100), and someone pays that contract premium to you.
If the stock exceeds the strike price at the time of expiration, you lose the shares, but receive the cash for the shares plus the premium they paid you.

If the stock stays below the strike price, you keep the premium and the shares. Money!!

So you are just reselling the contract, never actually excising the option to buy the shares? How do you resell a contract? And does it text up and down like the stock does?

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So you are just reselling the contract, never actually excising the option to buy the shares?

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Yes. 100% of the time.

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How do you resell a contract?

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Click “sell” or STC (sell to close).
Enter a limit price. Submit it.

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And does it text up and down like the stock does?

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Learning how options move is vital.
Those that are closer to the expiry date swing wildly. The further out you go, the less it fluctuates, especially if they are deep in the money in which case the only move a little bit more than the stock price (underlying) itself.

Example: NBIS was up about 10% yesterday. Let’s see how the options did:


Up 46%
But look at the 1 month chart.
High of $23 and a low of $5!

What makes a contract worthless versus what makes it extremely valuable?
ITM vs OTM
IN the Money vs Out of the money.
NBIS closed at $117.26
If you own options with a $100 strike then they are ITM.
Whether they expire next week or next year, they have a lot of value.
And because it’s valuable, they contracts cost more.

If you own contracts with a strike of $180 that expire next week, then they are worth almost nothing. As in, near $0.
Sure, they’re cheap if you want to buy them, but the risk/reward is almost ALL risk.

So you’ve got to be smart with your selections and know what is likely to happen before you buy them.
I have a whopping two contracts that expire this Friday. They are $135 strike price. They were cheap because NBIS is unlikely to reach $135 by Friday.

I’m also not going to wait around to find out. One more big move and I’m selling those. I won’t make a ton because I only own two contracts, but it’s something.



I bought these around $113 yesterday thinking we’d go back to 115 or higher.
It happened, and that’s why I’m up 20%.
I can potentially double my money on these with a strong open on Monday.
Why? High risk/high reward.
They are far out of the money given the close expiry date.
But if we continue to rapidly approach $135 then the contracts will appreciate like crazy.

I found a great way to learn options is on Robinhood. Pick one you really like and then add it to your watch list.

It acts like you bought it, then you can watch and see how you would have done.

It’s a great way to learn without risking money.

I’m going to try that!