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re: Nebius - NBIS - AI Infrastructure Company

Posted on 8/16/25 at 3:03 pm to
Posted by SquatchDawg
Cohutta Wilderness
Member since Sep 2012
20002 posts
Posted on 8/16/25 at 3:03 pm to
Buy CRWV at this level to ride the hype and then dump before earnings.
Posted by OTIS2
NoLA
Member since Jul 2008
52515 posts
Posted on 8/16/25 at 7:15 pm to
Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/17/25 at 8:45 pm to
Let’s go calls!


I’m ready to convert most of these to shares. And by that I don’t mean exercise, but sell then buy shares with the money.

When it was dipping last week I sold shares to buy calls, thus leveraging the return to $75, which I hope happens this week.
This strategy started paying off Friday as NBIS was up around 3% but my port was up around 8.5%
This post was edited on 8/17/25 at 8:46 pm
Posted by SquatchDawg
Cohutta Wilderness
Member since Sep 2012
20002 posts
Posted on 8/17/25 at 8:57 pm to
Let’s hope for a nice little run this week.
Posted by TigerFanatic99
South Bend, Indiana
Member since Jan 2007
35867 posts
Posted on 8/17/25 at 9:14 pm to
So... what are calls? How do they work? What are the scenarios you profit and what are the elscenaeios you lose money?

To quote my favorite movie: explain it to me like I'm a small child, or a golden retriever
Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/17/25 at 9:38 pm to
Calls and Puts are derivatives of the stock that are traded in contracts, which are known as “options”.
They are referred to as options contracts because buying a call options gives you the right, but not the obligation to buy 100 shares of the underlying stock (NBIS) in this case at a particular strike price before or on a specific date (expiry date, meaning when the contract expires).

Let’s use the 19 September $80 call as an example.
Ok Grok, take it from here…

What Are Options Contracts?

Imagine you’re at a toy store, and you *really* want a super cool Nebius AI Robot toy, which is made by Nebius, a company that builds awesome tech for artificial intelligence (AI). The robot costs $80 today, but you only have $5. The store owner says, “For $5, I’ll let you lock in the price of this $80 Nebius AI Robot. You can come back any time before September 19, 2025, and buy it for $80, even if the price goes way up! But if you don’t want it by then, you don’t have to buy it—you just lose the $5.”

This deal is like an **options contract** in the stock market. The $5 is the **premium** (the price you pay for the option), the $80 is the **strike price** (the price you can buy the stock at), and September 19, 2025, is the **expiry date** (when the deal expires). If you don’t buy the robot by that date, the deal’s off, and you lose the $5.

In the stock market, options work the same way, but they’re about shares of a company like Nebius (NBIS). Each options contract covers **100 shares** of the stock. There are two types: **calls** (the right to buy) and **puts** (the right to sell). Let’s focus on the **19 September 2025 $80 call** for NBIS, as you asked, and explain how it works.

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What’s a Call Option?

A **call option** is like that toy store deal. It gives you the *right* to buy 100 shares of Nebius (NBIS) stock at $80 per share (the strike price) any time before or on September 19, 2025. You don’t *have* to buy the shares—it’s your choice, which is why it’s called an “option.” You pay a small fee (the premium) for this right, just like the $5 for the robot.

Let’s say today, August 17, 2025, Nebius stock is trading at $47.88 per share, based on recent data. You buy a **19 September 2025 $80 call** for a premium of, say, $3 per share (a hypothetical price since exact premium data for this specific contract isn’t provided). That means you pay $300 total ($3 × 100 shares) for the contract. This contract lets you buy 100 shares of NBIS at $80 each before the expiry date. If Nebius’s stock price shoots up, this could be a great deal! But if it stays below $80, you might not use the option, and you’d lose the $300 premium.[](LINK

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Why Do People Buy and Sell Options Instead of Exercising Them?

Most people who buy the 19 September 2025 $80 call for NBIS don’t actually want to buy 100 shares of Nebius stock. Instead, they’re trying to make money by **buying and selling the options contract itself** for a quick profit. This is because options are like a turbo-charged bike—they can get you bigger gains (or losses!) faster than just buying the stock. Let’s see how this works with Nebius.

Example: Trading the NBIS Call Option

Suppose Nebius stock is at $47.88 today, and you buy the 19 September 2025 $80 call for $300 ($3 per share × 100 shares). You’re betting that Nebius’s stock price will go up, maybe because of cool news like their AI infrastructure growth or their plan to hit $1 billion in annual recurring revenue (ARR) by the end of 2025, as mentioned in X posts.

A month later, let’s say Nebius announces they’ve secured a huge new AI data center deal, and the stock price jumps to $90 per share. Your call option is now super valuable because it lets someone buy NBIS stock at $80, even though it’s trading at $90. That’s a $10 profit per share if they exercised it (minus the $3 premium you paid). So, the option contract might now be worth, say, $8 per share, or $800 total ($8 × 100 shares).

Instead of exercising the option to buy 100 shares of NBIS (which would cost $8,000 at the $80 strike price), you **sell the option contract** to another trader for $800. You paid $300 for it, so you make a profit of $500 ($800 - $300). That’s a 167% profit on your $300, even though the stock only went up from $47.88 to $90 (about an 88% increase)! This is why options are called **leveraged**—they amplify your gains (or losses) compared to the stock’s movement.
Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/17/25 at 9:39 pm to
Why Not Exercise the Option?

Exercising the option means using it to buy 100 shares of NBIS at $80 each. In our example, you’d pay $8,000 to get shares worth $9,000 ($90 × 100 shares). That’s a $1,000 gain, minus the $300 premium, so a $700 profit. Not bad! But here’s why most people don’t exercise:

1. **It Costs a Lot**: Exercising means paying $8,000 to buy the shares, which is way more than the $300 you spent on the option. Most people don’t want to tie up that much money.
2. **Quicker Profits**: Selling the option contract for $800 is faster and easier. You get your $500 profit without needing to buy and then sell the shares.
3. **Less Risk**: If you buy the shares and the stock price drops (say, back to $50), you could lose a lot of money. Selling the option locks in your profit without that worry.
4. **Options Are Like Trading Cards**: Think of options like a rare baseball card. You buy it hoping its value goes up, then sell it to someone else without “using” it. Options traders do the same—they trade the contract for its value, not to own NBIS stock.

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What About Puts?

Since you mentioned puts, let’s cover them briefly. A **put option** gives you the right to **sell** 100 shares of NBIS at $80 before or on September 19, 2025. You’d buy a put if you think Nebius’s stock price will *drop*. For example, if NBIS falls to $30, your put lets you sell at $80, making a profit. But like calls, most people trade the put contract itself for quick gains, not to sell the shares, for the same reasons: it’s cheaper, faster, and less risky.

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Why Is This Risky?

Options are exciting because you can turn a small amount of money (like $300) into a big profit (like $500). But they’re risky, like trying to catch a fly ball in a crowded stadium:
- If NBIS stays below $80 by September 19, 2025, your call option becomes worthless, and you lose the $300 premium.
- Stocks can be unpredictable. Even though Nebius is growing fast in AI (with posts mentioning a $1.1 billion ARR target), bad news could tank the stock.
- Options expire, so you’re racing against time. If NBIS doesn’t hit $80 by September 19, 2025, your option is like an expired coupon—worth nothing.

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Why Nebius and Options?

Nebius is a hot company because it builds AI infrastructure, like huge computer systems for AI developers, with data centers in Europe, North America, and Israel. Recent X posts show excitement about their growth, with revenue up 625% year-over-year and plans for 1 gigawatt of data center power by 2026. This makes NBIS a popular stock for options trading, as traders bet on big price moves. For example, a web source noted 3,000 contracts traded for an NBIS August 2025 $80 call when the stock was at $74.65, showing strong interest in similar call options. Traders buy these contracts hoping to sell them for a profit as Nebius grows, not to own the stock.[](LINK [](LINK

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Wrapping It Up

The **19 September 2025 $80 call** for Nebius (NBIS) is a deal that lets you buy 100 shares of NBIS at $80 each before or on September 19, 2025, if you choose. You pay a premium (like $300) for this right. Most traders don’t use the option to buy shares—they buy and sell the contract itself to make quick, leveraged profits, like turning $300 into $800 if NBIS jumps to $90. This is because trading the contract is cheaper, faster, and less risky than exercising it. With Nebius’s exciting AI growth and buzz from X posts about its revenue and data centers, options like this are popular for betting on big moves. But they’re risky, so it’s like playing a game where you could win big or lose your bet!
Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/17/25 at 9:44 pm to
It fails big time on the pricing data, but you get the point.
Maybe I can sell some of the options tomorrow and show demonstrate how quickly they move relative to the stock.
It’s merely a hyper leveraged investor instrument.
Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/17/25 at 9:48 pm to
Or check this out:
The stock, or underlying, is up about 40% in one month, but the option is worth 150%

Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/17/25 at 9:53 pm to
But the closer we get to the expiry date of 9/19, the more dramatically the call option can lose value if Nebius doesn’t get any closer to the strike price of $80.

The current premium of 3.70 to lock in your purchase of the “toy” at $80 will erode. Possibly, all the way down to nothing. But if the price of the “toy” skyrockets at any point tomorrow morning, say by 5%…since we are still in mid August every one may think that the toy may jump to $90 by 9/19. And if the market thinks that way, even for an instant, the price of the contract may increase as much as $1, perhaps more.

Well, 3.70 to 4.70 is 1/3.7=0.27
Yep, 27%
I don’t think I want that toy after all. I think I’ll just take my quick 27% profit and buy something else.
This post was edited on 8/17/25 at 9:55 pm
Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/17/25 at 10:05 pm to
Last thing, don’t buy calls on a day when the stock is way up. That’s when you sell them. Be patient and buy calls when you’ve had a good dip, and buy far enough out to where you won’t immediately get burned if the stock continues dropping for a few more days.
Save capital to average down if you think the stock will bounce back.

I am most comfortable with expiry dates that are at least 30 days away, but I will sometimes target a closer date with a lot less at stake. Say, 5 contracts instead of 25.

Some people buy calls that expire on the same day. One day, they will get burned. It’s inevitable.
Posted by astonvilla
New Jersey
Member since Dec 2005
3512 posts
Posted on 8/18/25 at 4:31 am to
Dan Ives who is a huge and popular IT investor on CNBC regularly added NBIS to his Top 30 AI stocks. this can be potentially huge exposure.
Posted by AUTimbo
Member since Sep 2011
3309 posts
Posted on 8/18/25 at 5:35 am to
Bengal thanks for ecplaining that to us newbs in laymans terms. Have been very curious trying to understand how you guys were so excited with the Nebius movements and this explains why perfectly.

One question, do you guys use some type of base formula for figuring out at what dollar/share amount to set your options or are there just different choices given when you go to set your options? (i.e. multiple choices for a given stock)
Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/18/25 at 5:47 am to
quote:

One question, do you guys use some type of base formula for figuring out at what dollar/share amount to set your options or are there just different choices given when you go to set your options? (i.e. multiple choices for a given stock)

No, I don’t have it down to a science. I just don’t get too greedy when I have a lot of exposure. So ~30 percent gains is good for me, but I have been fortunate to hold and sell a few for 200-300%.
Best of luck

But yes, for each stock there is an options chain that is created from the options board in Chicago.
It will vary based on the popularity and the volatility of the stock.
This post was edited on 8/18/25 at 6:57 am
Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/18/25 at 5:50 am to
quote:

Dan Ives who is a huge and popular IT investor on CNBC regularly added NBIS to his Top 30 AI stocks. this can be potentially huge exposure.
I’m realizing now that this is a huge deal. Lot of retweets on this.

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Posted by astonvilla
New Jersey
Member since Dec 2005
3512 posts
Posted on 8/18/25 at 6:12 am to
if NBIS turns out to be like his other investments, man this can get good.
Posted by Jax-Tiger
Vero Beach, FL
Member since Jan 2005
27792 posts
Posted on 8/18/25 at 8:26 am to
Seems like he has misgendered NBIUS. They should be in the hyperscaler column and not the semi-conductor/hardware column.

At any rate, NBIS is the smallest company in either of those columns, by a lot. Micron is the next smallest and they have $33B in revenue.

All the rest of the companies in the hyperscaler are huge and well established. He could have added CRWV, but he didn't. He went smaller and chose NBIS. That tells me he believes NBIS is positioned to soar.
This post was edited on 8/18/25 at 8:28 am
Posted by bayoubengals88
LA
Member since Sep 2007
24562 posts
Posted on 8/18/25 at 8:28 am to
Hold on tight!
Posted by Nursie21
Member since Nov 2018
219 posts
Posted on 8/18/25 at 8:52 am to
Maybe we're the only ones reading this thread.
Posted by SquatchDawg
Cohutta Wilderness
Member since Sep 2012
20002 posts
Posted on 8/18/25 at 8:58 am to
$70 seems to be defended but $75 gets beaten down. I’ve never followed stock prices this closely and it’s interesting to see how certain levels get bought and sold.
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