re: Nebius - NBIS - AI Infrastructure Company

6 weeks til expiry, $100 out of the money, 3.5 million spent…

Hopefully a MAJOR deal coming.
20-30bn

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Maybe I should buy some Nebius calls

Some entity spent 3.5 million dollars for the right to purchase NBIS at $320 per share by July 17th

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6 weeks til expiry, $100 out of the money, 3.5 million spent…

Hopefully a MAJOR deal coming.
20-30bn


you want to educate the dummies here about why this is? Or you have a YT video explaining it?

Trying to learn.

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A very wealthy person has bought options to buy NBIS stock at $320/share. The options expire in 6 weeks. If he wants to exercise those options, the price will have to be at least $330/shr ($320/shr + premium), and that's just to break even.

Now he could make a profit by selling the calls at some point if the stock goes up rapidly in the next few weeks. Let's say the stock goes up to $300 by mid-June - he will probably be able to sell the options for a profit at that point.

If he let's those options expire, he loses $3.5M.

When someone makes a big bet like that, they may know something - maybe Clickhouse (28% owned by NBIS) will announce an IPO date and/or NBIS announces a large contract with a hyperscaler. I don't know, but the call date is BEFORE the next earnings report, so it's doesn't have anything to do with that.

Whatever it is, it's gotta move the stock price a lot. As Jefforize has said, the market is very volatile right now, as buyers are selling stock in order to free up cash for SpaceX, Anthropic, and OpenAI, so this is a huge risk. We can only hope this guy knows something.

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Are they sold for protection?

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Are what sold?

That was a bad news for the guy who bought the $310c.

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calls

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He can sell the calls to take profits or cut losses.

If he paid, say, $10/share for those calls, and the stock goes up rapidly in the next two weeks, lets say, to $280, the price of those calls could double, and he could sell to take a 100% profit.

Conversely, if the price of NBIS goes down below $200, those calls could go down in price to say, $2/share. He has several options:

1.) Wait and let the options expire and lose $3.5 million as the options become worthless. He might wait a while, if he really believes the stock is going to go up, but he will probably end up doing option 2 or 3 if it becomes obvious that he's going to miss on the targets.

2.) Sell the options and take the losses. If he sells at $2, he'd lose $8 per share. Ideally, he would wait for a spike in price before selling.

3.) Roll the options into another option dated further out, or with a higher strike price. You can pay additional premium and roll the options out to a later strike date or higher strike price. This will require him to throw more money and could be throwing good money after bad.

Options are risky, especially if you are looking for a big spike in a short amount of time. I believe that this guy is either stupid or he thinks he knows something...

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Sold 100 OUST
Bought 20 NBIS at $211

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Nice little 10% return on the day!

I timed that dip perfectly at $211

Looks like folks sold NVDA and bought NBIS. NVDA dropped like a rock late