re: Nebius - NBIS - AI Infrastructure Company

NBIS up $1.50off hours market. I like it

Fellas, I’ve only been following this thread for about two weeks but have spent countless hours in that time researching NBIS as much as possible. I made a little money during the late Oct dip, but frankly I didn’t have a full comprehension of what they do, who their partners are, and what their non-core businesses are until I missed the chance to capitalize on the the $98-$102 prices.

I am now ready to put up to $150k in this stock. I am on track with my current retirement plan and am fairly young (low 40’s) so I am risk tolerant. I also have another $180k in stocks/HY savings liquid accounts. My question is, what would be your strategy for immediate entry and looking at a 3-6 month timeframe?

The $ I made late last month was through day-trading NBIS while I researched and only have 50 shares left in my stockpile. Part of me wants to just buy 1,000 shares at market open tomorrow and see what kind of run we get through earnings. I traded options years ago but it has been a while and I don’t like investing until I have a full understanding of what I’m doing. I say that to say, I’d be happy with a 25% ROI so I’m leaning towards buying the 1K shares at roughly $130 tomorrow morning and letting it ride through earnings. Then reassessing my position and possibly pulling out some profits if they’re decent. Meanwhile, I’ll be starting to sharpen my options skills. How would you play it? All shares? 80/20 shares/calls? If you’d do calls, what target price? I appreciate any and all advice. The main cast of characters have been so fun to follow, and I’m jealous I won’t have a yacht drink named by IT_Dawg but maybe an invitation one day.

Money Bags Dawg and Bayou will give you a better answer!

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I’d buy 25 of the January $140 calls and 500 shares. We will walk you through it if you need options coaching.

I own 20 Feb $140,
30 June $150

That’s what I would do. You’ve got to do what fits your goals.

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Ok explain this to me. How do the options work? What do you mean when you say i own 20 Feb $140

Expiration date is 2/19/26
Strike price is $140
Contract price is 26.60
Each contract represents the right, but not the obligation, to BUY 100 shares of NBIS at $140/share.

Since each contract represents 100 shares, the price to buy the contract is $2,660. I own 20 contracts.

I have no intention of buying 2000 shares at $140.
I will simply sell the contract itself at say $55 or $5,500 each. 5500x20=110,000

Now, why does the contract cost $26.60? Because the current implication is that NBIS will be worth $166.60 by the time the option expires.
$140, the strike price plus the value of the contract. Well, if Nebius is actually trading at $200 in mid February, the contract will be worth around $60 per contract. No question about it. That’s the math.

If there’s a strong move upward after earnings to 155 or higher, than the 26.60 contract will easily be worth upwards of $40 as the implied price of NBIS for 2/19/26 will be north of $180.

Examples of strikes and expiry’s are much easier to understand when looking at strikes for a close expiry date.
Take a look at the options contracts that expire this Friday, and let us know if you have any questions.
Example: 11/7 $160 is going for about .30 ($30) while the 11/7 $135 is going for 5.10 ($510).

Now why is that?
Since the price of the actual stock is around $131, the $135 strike price has a lot more intrinsic value than the $160.

The likelihood of NBIS reaching a strike of $160 is slim to none. The play on that contract is all risk and likely no reward, hence, it cost $30.

The likelihood of NBIS reaching $135 by Friday’s close is much greater, which increases the price of the contract.
BUT, if the price of NBIS doesn’t exceed the price of the contract + the strike price then the contract will expire at $0.00 (worthless).

I know this part may be confusing so let me know if you have questions.
It’s all about the movement of the price of the contracts relative to the movement of the underlying stock, with the added essential element of time left until expiration. Time is SO important for options. There are plenty of examples in the thread.

Look at IT last Friday.

Like I said many pages ago. If you want to learn options easily.

1. Get Robinhood
2. Find a option you like
3. Add it to your watch list
4. Watch it grow/loose money

It teaches you a lot.

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Expiration date is 2/19/26
Strike price is $140
Contract price is 26.60
Each contract represents the right, but not the obligation, to sell 100 shares of NBIS at $140/share.

Since each contract represents 100 shares, the price to buy the contract is $2,660. I own 20 contracts.

I have no intention of buying 2000 shares at $140.
I will simply sell the contract itself at say $55 or $5,500 each. 5500x20=110,000

Now, why does the contract cost $26.60? Because the current implication is that NBIS will be worth $166.60 by the time the option expires.
$140, the strike price plus the value of the contract. Well, if Nebius is actually trading at $200 in mid February, the contract will be worth around $60 per contract. No question about it. That’s the math.

If there’s a strong move upward after earnings to 155 or higher, than the 26.60 contract will easily be worth upwards of $40 as the implied price of NBIS for 2/19/26 will be north of $180.

Examples of strikes and expiry’s are much easier to understand when looking at strikes for a close expiry date.
Take a look at the options contracts that expire this Friday, and let us know if you have any questions.
Example: 11/7 $160 is going for about .30 ($30) while the 11/7 $135 is going for 5.10 ($510).

Now why is that?
Since the price of the actual stock is around $131, the $135 strike price has a lot more intrinsic value than the $160.

The likelihood of NBIS reaching a strike of $160 is slim to none. The play on that contract is all risk and likely no reward, hence, it cost $30.

The likelihood of NBIS reaching $135 by Friday’s close is much greater, which increases the price of the contract.
BUT, if the price of NBIS doesn’t exceed the price of the contract + the strike price then the contract will expire at $0.00 (worthless).

I know this part may be confusing so let me know if you have questions.
It’s all about the movement of the price of the contracts relative to the movement of the underlying stock, with the added essential element of time left until expiration. Time is SO important for options. There are plenty of examples in the thread.

Look at IT last Friday.

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So you bought 20 contracts at $2660 per contract or $2660 total?

So when do you sell? Anytime before Feb 20? So if stock is at $170 on Feb 18th and you sell the 20 contracts your essentially selling 2000 shares correct at $175? Minus the $2660 per contract or total? So what would be your profit?

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So you bought 20 contracts at $2660 per contract or $2660 total?

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My average is 25.77 so I spent 2577x20=51,540
I’m currently up 3.23% or $1,664.00

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So when do you sell? Anytime before Feb 20?

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Yes, I can sell tomorrow for whatever someone is willing to pay if I wanted. Probably $27-28 per contract if NBIS starts well.

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So if stock is at $170 on Feb 18th and you sell the 20 contracts your essentially selling 2000 shares correct at $175? Minus the $2660 per contract or total? So what would be your profit?

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If the stock is $170 as we approach the expiry date then the call options will be worth at least $30 per contract. That’s not a whole lot better than what the cost right now.
But again, if we’re at $170 wayy ahead of schedule, like 11/14 just after earnings, then the price of the contract will likely be $50 or higher. I might sell then. I’m not sure at the moment.
My position would be worth 100k, nearly a 100% increase.

The options move much more than the stock. The closer the expiry the more the movement, both up and down.

Look at NBIS on Friday and look at some of the movement on the options.
NBIS was up around 5 percent??
The option mentioned was up 12.47%

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If the stock is $170 as we approach the expiry date then the call options will be worth at least $30 per contract. That’s not a whole lot better than what the cost right now.
But again, if we’re at $170 wayy ahead of schedule, like 11/14 just after earnings, then the price of the contract will likely be $50 or higher. I might sell then. I’m not sure at the moment.
My position would be worth 100k, nearly a 100% increase.

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So your average is $25.77 and if stock goes up and price of contract becomes $50 then thats doubling your money correct if you sell?

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My average is 25.77 so I spent 2577x20=51,540
I’m currently up 3.23% or $1,664.00

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So you spent $51,540. Do they just deduct that out of your account?


Why not just buy the stock at its current price and ride it up? What's the benefit of trading options rather than just ownign the stock?

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My question is, what would be your strategy for immediate entry and looking at a 3-6 month timeframe?

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I’m not one to tell others what they should or shouldn’t do with their money. I just share what I’m doing and sometimes the why behind it. The why is typically gut feeling on the sector, industry and other economic factors happening. Also, I’ve been investing in this since Feb/March and feel this stock fairly well.

That being said, here is what I am currently holding headed into earnings on 11/11. I also have so cash from last week to play some weekley options. In my mind, we will creep up this week into the $140 range and then have really good earnings and announcements next Tuesday, which would catapult NBIS up into the $165 range, IMO. That’s how I’m playing it right now

3000 shares
258 11/21 $140c
100 11/21 $145c
260 11/21$150c
110 12/19 $140c
100 2/26 $175c

Now, after earnings, I will reset my focus on some late Decembers and February 26, with a slight increase OTM for December and probably 25-30% OTM for 2/26 options, relying on another good earnings for Q4.

Of course, all this could change come Friday if this week depending on where the stock is sitting and how other earnings this week go, like IREN and PLTR

Oh, yea. Just so you know, I started with just a little more than you did on NBIS alone. Started with some shares around $36 and then started getting into the calls with some November 70s. That started going very well, so I started moving into shorter term calls, which kept going well. Got very lucky on the MSFT deal and have just been playing the peaks ever since.

Good luck and welcome to the party. You are now a Nebioid.