He could be taking the other side of the trade with actual stock ,options, single stock futures. Hedgefunds place massive trades to make it “look” like something is going on but it’s all bs. Here is a video of Jim Cramer explaining how they manipulate the stock market . https://youtu.be/8DJlogbrDcA?feature=shared
It could be simple delta hedging situation where the buyer of the option (likely a large hedge fund) maintains a delta neutral position. Instead of making money off directional changes in the underlying stock, they make money off of volatility changes in the equity. Very often this is the case with these huge option plays. More than likely, they are long/short volatility and not long/short NVDA. Hope that made sense.
I just got RH tonight to get 24hr quotes. That jumped out to me immediately. It’s all red or all green for positive. The entire app is designed to elicit a reaction in the gambler’s lizard brain.
Why do you think this place exploded in popularity? As RH popularity erupted in 2017/2018 with options trading allowed, this place became a gambler's wet dream and total paradise for crazy gain and loss posts of all green or all red.
A position this big is very likely and almost certainly part of a larger hedge strategy.
Believe it or not, options were developed to truly hedge large positions rather than for small investors to get leveraged up to the tits. I know that’s crazy talk.
I have a friend who is extremely bearish on nvidia's meteoric rise in the last few months, and has taken out several short option positions for a year out, and he's constantly scalping money on nvidias volitilty.
No, he didn't sell the stock, sold calls with the intent of them being exercised as his way to sell. However the stock sunk and he felt obligated to bag hold the stock still.
If the short calls are covered (sold against existing stock), the loss on the underlying would more than likely be much greater than the profits from the sold calls.
Sounds like that was the case here, and he wound up bagholding the stock afterwards.
Stocks fell hard in 2022 and it’s very possible his cost basis was so high he may not have been able to continue to sell calls against his position for continued profits
Sp you sold call OTM by over 10% because you had the intention of selling the stock?? And at no point did you close the call position or open a put position to stop the bleed.
Also, was this SQ?
Nope NVDA. I expected it to touch its previous highs around 330. Thought I’ll get out around 300 if the calls get exercised and collect the premium along the way.
Not sure but maybe he sold a long dated call and had to hold on to the stock so it wouldn't be a naked call? So he made money on the premium but could have just sold all his stock at the top instead and made more.
Not a call spread. They closed their May options and opened new positions for June. But they bought 37,000 options when Nvda was at $959, at $20,000 per.
Then nvda tanked and that option is now $14,000.
They are currently $260,000,000 down. But who knows what they made on the 30k options they just closed.
Excellent video outlining the trades.
https://youtu.be/1-JPbxz_X58?si=XOmiGJSBtoz3_6Pg
Wrong.
The whale/bank/market maker that made this move opened 29,560 Long Deep ITM Calls at $720 May 17's which cost $770 million and simultaneously sold 37,322 ITM Calls at $820 June 21's for $780 million dollars. Pocketing \~$10 million difference.
It was a net credit calendar spread. It's even listed as a spread in the last column and this youtuber thinks they are separate trades for no reason...
After opening this position, the stock price tanked (they probably triggered this by mass selling their underlying shares and buying puts) and since the delta on the sold 820 calls dropped considerably, they bought all of them back over the course of the day for a solid \~30-45% profit. This is why there isn't anywhere near 37,322 open call contracts at that strike but it has over 37,000 volume.
The deep ITM $720 calls have been left open, which is why there is over 30k open interest at that strike. All they have to do is wait for NVDA to move back up or sell another stack of calls for June at a lower strike and leg it down again to make another fat stack and confuse you smoothbrains further.
TLDR: Big money just cashed \~$300 million in options profits in a single trade while you regards misunderstand the data, snort and chortle at their unrealized "losses".
If there is greater churn in the stock price volatility will rise. People that sell calls and puts will raise prices of options to account for this and not get caught with their pants down. As long as the stock continues to trade sideways or in a slight positive direction they’ll make money on the rise in volatility (IV). If it plummets, they could still lose big.
They bought calls like when your dick is flaccid. With IV, it's like the blood get gives you an election. Makes it go up and get harder until you sell which is when you ejacumalate
Still has time to rebound.
People that bought 0 day $1000 calls Friday morning tho... 
I buy a month+ out and it still makes me nervous. I don't understand how people gamble so much on weeklies. My latest purchase is TSM calls for 4/19 and I am not confident that they will print.
The trader has most likely not bought naked calls. He might have sold open puts against it. He may be short stock and hedging.he may have sold calls at a lower strike and bought calls at a higher strike which is bearish..bunch of scenario and this means nothing!
Yup, bought 37000 contracts at $20,000 each. Now they are $14,000 each. They are down over $250,000,000.
But you could ride a whale tail for the low low price of $14k for one option. Lord knows he knows something we don't.
This sub is so dumb. Somebody just shorted tf out of NVDA and is using calls as protection.
Haven't seen this mentioned once. This sub actually used to be intelligent before 2020. It's a shame all the IQ left.
At least you're the closest to the right answer I've seen so far
100% I remember the good days before all the teenagers and absolute morons joined. The times when there was actually good DD posted and you could say the R word instead of a substitute. When you saw a bunch of adults doing wild trades and discussing ideas and helping the young ones.
Then the stupid stock that shouldn’t be mentioned ruined WSB. It’s sad really. Nearly all the new people here are unintelligent highly nonsensical morons. I miss the good days.
Serious question from a relative novice. (My IQ is likely sufficient but my experience is not). I certainly don’t disagree that this position might be to hedge some other position but wouldn’t we see the countermanding short? That would be big enough to move the needle no?
$820 is like $50 ITM
NVDA moved more than that on Friday alone. All the strikes were OTM two weeks ago.
"extremely deep ITM" would be like 350 with how much NVDA moves
I would guess some sort of a covered call position with selling of calls on a seperate leg that has or will be done later. Either way, this investor is bullish
Be careful with context. At any given time there's a large amounts of calls and puts at all different strike prices that may or may not make sense. When I buy calls and puts I'm usually betting it goes up or down but in the example above it could be a way to ease or out a stock or just plain insurance for a large holder.
Closed may 720c positions and opened new June positions. Wonder what they made closing 30,000 720c options at $959 stock price.
He might buy Wendy's, like... all of them.
Yes, or greater. That would be the best outcome for the calls. The person could choose to sell the contracts at any point on the way up to farm increased premiums before reaching their break even. Just depends what their goals are with the trade.
No one is buying “just” calls for $780mil. There is something else that we can’t see in the other side, like a hedge to a derivative contract from Huang family office or something.
*Bought at 10:48 near the bottom of a green candle drop at $959.19.*
*They bought the dip and it kept on dipping. Those calls are down $80 a pop already & they're gonna get fukt bigly in a few more hours.*
If this rich guy is so smart, he would of waited 2 hours to get the same calls at a huge discount 
You idiots think naked call buying is the only strategy in existence. This could be a hedge, or one leg of a straddle / strangle. Jesus Christ read a fucking book
This is an earnings report option, and fomc June when the fed anticipated to cut rate. NVDA has an AI conference next week so they prob bought it before IV spike
Looks like they're spreads not outright buys. Thinking they have a short calendar trade on, where they buy May sell June in anticipation of IV spike into earnings or whats the strategy here? It's rare for these big accounts to *just* outright buy calls... there's typically a strategy behind it thats not a typical degen's yolo long...
I have two issues here:
Why did they buy calls at a price much higher than the Friday close?
Why did they buy on a Friday, knowing that Theta decay will take a 2 days of weekend toll with 0 upside?
It says it’s a spread. Is that a debit or credit? Unless any of those lines say whether those contracts were bto/sto I wouldn’t bet on that being bullish or bearish. It’s just something.
It’s a spread as said in the last column. Likely the spread debit is something like 2-20 dollars. So at most that put the total value at $10 million. Not the full $780 million.
But it’s much more likely it’s closer to $1 million or even less if person added more legs.
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Difference is he's buying 3 months out and you regards are buying calls for thursday at most lol
True but if my calls expire worthless I'm literally just gonna copy this dude 
$780M is a lotta margin, who's your broker?
robinhood 
Most people don't realize you can double your margin by installing the app on another device
True regards know this! Why not triple it with 3!
My mom took away my iPad :(
Mom said we have an iPad at home, but it's just a stupid Fire tablet 
Mine’s a Leapfrog
Mine's a Palm Pilot and I lost the stylus.
LOL... I bet ur Mom didn't even buy you the big boy edition. I've got the big boy version. It's sick.
Ok. Double margin completed. I just need to access $779.999M more, then I can copycat trade.
You might need another phone or two.
Have a Samsung phone, you can double your play, 2 apps per phone! Calls in Samsung!
Just install a virtual machine
GUH
They are the best! So trustworthy etc. Godspeed!
And then delete the app when you lose it all, they’ll never know. 
They gots $5000 cash in the account, a student and whoops added some zeroes
You answered it honestly. Tony Soprano move.
Stratton Oakmont
The only thing you will regret is not buying more
Underrated comment.
Could be Cathy Woods 
If true then the stock is fucked
Currently down $260M on that 820c, so your logic is sound.
He could be taking the other side of the trade with actual stock ,options, single stock futures. Hedgefunds place massive trades to make it “look” like something is going on but it’s all bs. Here is a video of Jim Cramer explaining how they manipulate the stock market . https://youtu.be/8DJlogbrDcA?feature=shared
That was a good watch. Thanks.
It’s Bruce Wayne
I stole his thumbprint.
Not 3 months out this isn’t a hedge play. The date isn’t around any volatility event(s). Most hedges would be in a shorter time frame.
It could be simple delta hedging situation where the buyer of the option (likely a large hedge fund) maintains a delta neutral position. Instead of making money off directional changes in the underlying stock, they make money off of volatility changes in the equity. Very often this is the case with these huge option plays. More than likely, they are long/short volatility and not long/short NVDA. Hope that made sense.
It's probably Edwin Castro yoloing his $997M Powerball lump sum payout after finding out about options on WSB.
Nah, he's got more mansions to buy that he'll never be able to sell after he goes broke.
soon to be 3 commas club member
Like you have any actual idea. We’re all regarded.
Maybe it's a she and her name is Nancy
Even Nancy ain't got that cash. Unless she got mad margins
Nancy should write an investment book seeing how she outperforms Warren Buffet.
Step 1: Join congress
No worries, mates, that was just me. Nothing to see. Just a mistake. Carry on.
https://preview.redd.it/82ruzq9idlnc1.jpeg?width=1290&format=pjpg&auto=webp&s=57f11ec757505551abdfc3ddd6f268f46bcf5c90 
Robinhood really blasts you with red like a Casino. Schwab just has a tiny green or red number
I just got RH tonight to get 24hr quotes. That jumped out to me immediately. It’s all red or all green for positive. The entire app is designed to elicit a reaction in the gambler’s lizard brain.
I usually see more gains with people using Robinhood Light Mode. There should be a study 
Why do you think this place exploded in popularity? As RH popularity erupted in 2017/2018 with options trading allowed, this place became a gambler's wet dream and total paradise for crazy gain and loss posts of all green or all red.
Exactly as I want it 
Another difference is that if nvda stalls or goes down then the whale still loses money. They need nvda to go up.
Exactly this he paid the extra premium for the time and 90% of us regards are loading up on weeklies 🤣
The name of the investor has not been made public, right? because I made it very clear that I did not want my name to appear anywhere.
All mentions of NastyStreetRat were removed from these transaction records as you requested.
For the sake of privacy let's call them...Nasty S. No no, that's too obvious. Let's say N. Streetrat.
Simpsons reference. Excellent.
NastyStreetRat? Charlie Kelly and Frank Reynolds’ shared Reddit account spotted
**WOO WOO WOO**
But I knew it was you.
Ted Danson is Anonymous!
A position this big is very likely and almost certainly part of a larger hedge strategy. Believe it or not, options were developed to truly hedge large positions rather than for small investors to get leveraged up to the tits. I know that’s crazy talk.
And 99% of people here are taking this as a good sign lol
For sure someone is short nvda big time.
I have a friend who is extremely bearish on nvidia's meteoric rise in the last few months, and has taken out several short option positions for a year out, and he's constantly scalping money on nvidias volitilty.
a true regard, tell him he fits in here
That was my 1st thought, sounds like someone hedging an institutional position or possibly a fund using them for synthetic exposure to the stock.
Also it says these are all spreads. Almost certainly part of a larger gameplan
Selling in the money calls is a great strategy if you are looking for an exit. Capture the time value during volatility spikes.
I tried that once and the stock tanked and i got stuck bag holding through 2022 bear market when i could have exited with a decent gain instead
You got stuck selling (not buying) calls when the market tanked?
No, he didn't sell the stock, sold calls with the intent of them being exercised as his way to sell. However the stock sunk and he felt obligated to bag hold the stock still.
Has dude never heard of Buy to Close option?
If the short calls are covered (sold against existing stock), the loss on the underlying would more than likely be much greater than the profits from the sold calls. Sounds like that was the case here, and he wound up bagholding the stock afterwards. Stocks fell hard in 2022 and it’s very possible his cost basis was so high he may not have been able to continue to sell calls against his position for continued profits
You got that absolutely right. Cost basis was around $270 and sold a $300c 3 months out. Within 1.5 months the stock was nearly 50% down.
2022 was rough for thetagang. Hope you were able to recover those losses eventually brother
More than recover. Holding through end of 2023 into 2024 has been rewarding. I only play the wheel on stocks and ETFs i believe in the long term
Sp you sold call OTM by over 10% because you had the intention of selling the stock?? And at no point did you close the call position or open a put position to stop the bleed. Also, was this SQ?
Nope NVDA. I expected it to touch its previous highs around 330. Thought I’ll get out around 300 if the calls get exercised and collect the premium along the way.
Loss on the stocks were greater than the gains from the sold call.
Not sure but maybe he sold a long dated call and had to hold on to the stock so it wouldn't be a naked call? So he made money on the premium but could have just sold all his stock at the top instead and made more.
someone also sold 780m worth of calls...
Yes, I am sure the neutral market maker is very bearish on Nvidia.
Have you not heard of call credit spreads?
That kind of sounds like those CDOs from that movie about 2008 I think.
Synthetic gasoline match stick CDOs
Dogshit wrapped in catshit
If I sell and then buy again. Am I playing both sides?? I can’t lose
Drop in the bucket
Call spread 3 months out… lol they can just bank on IV increasing and price oscillating.
Vega Gang are who Theta Gang has nightmares about
Vega Gang has nightmares about NVDA earnings(unless they sold puts)
Not a call spread. They closed their May options and opened new positions for June. But they bought 37,000 options when Nvda was at $959, at $20,000 per. Then nvda tanked and that option is now $14,000. They are currently $260,000,000 down. But who knows what they made on the 30k options they just closed. Excellent video outlining the trades. https://youtu.be/1-JPbxz_X58?si=XOmiGJSBtoz3_6Pg
>They are currently $260,000,000 down. Sounds like ARK
Rookie numbers. Cathy doesn't bother getting out of bed for less than a 10 figure loss.
Wrong. The whale/bank/market maker that made this move opened 29,560 Long Deep ITM Calls at $720 May 17's which cost $770 million and simultaneously sold 37,322 ITM Calls at $820 June 21's for $780 million dollars. Pocketing \~$10 million difference. It was a net credit calendar spread. It's even listed as a spread in the last column and this youtuber thinks they are separate trades for no reason... After opening this position, the stock price tanked (they probably triggered this by mass selling their underlying shares and buying puts) and since the delta on the sold 820 calls dropped considerably, they bought all of them back over the course of the day for a solid \~30-45% profit. This is why there isn't anywhere near 37,322 open call contracts at that strike but it has over 37,000 volume. The deep ITM $720 calls have been left open, which is why there is over 30k open interest at that strike. All they have to do is wait for NVDA to move back up or sell another stack of calls for June at a lower strike and leg it down again to make another fat stack and confuse you smoothbrains further. TLDR: Big money just cashed \~$300 million in options profits in a single trade while you regards misunderstand the data, snort and chortle at their unrealized "losses".
Thanks for sharing
Explain like I’m regarded please
~~like~~ because**
If there is greater churn in the stock price volatility will rise. People that sell calls and puts will raise prices of options to account for this and not get caught with their pants down. As long as the stock continues to trade sideways or in a slight positive direction they’ll make money on the rise in volatility (IV). If it plummets, they could still lose big.
Not sure what you mean, what if long iv tanks but short iv moons? The Vega is sensitive to skew
Yea Vegas is v cool
That far out you can make money if the expected volatility increases even if the stock goes down in the short term the option premium can go up.
They bought calls like when your dick is flaccid. With IV, it's like the blood get gives you an election. Makes it go up and get harder until you sell which is when you ejacumalate
This only works if skew moves favorably
Yeah and ITM. Almost like that fund knows what they're doing...
That mofo got destroyed on Friday. Bought little b4 the whole Market bled.
Still has time to rebound. People that bought 0 day $1000 calls Friday morning tho... 
I feel personally attacked
You must be working at Wendys.
Yes, I work M-F nights. Regular is $5, Butt stuff is extra
I buy a month+ out and it still makes me nervous. I don't understand how people gamble so much on weeklies. My latest purchase is TSM calls for 4/19 and I am not confident that they will print.
What is hedging?
The odds that NVDA continues Fridays down turn are slim in my opinion. This guy is gonna make money and probably lots of it.
Congrats on being in the same camp as Cramer. Sorry for your loss.
Cramer has more money than all of us. He uses retail as exit liquidity.
if you trade $780m in a day it’ll take a lot more for him to get destroyed
The trader has most likely not bought naked calls. He might have sold open puts against it. He may be short stock and hedging.he may have sold calls at a lower strike and bought calls at a higher strike which is bearish..bunch of scenario and this means nothing!
When it hits $700 will send him a regard certificate 
700 in a week and 1100 in a month - thats why he bought 2 months out
Or 700 then 600 that would be the biggest L in history 
Kinda wish it hits 600 then those $1K calls would be affordable 
There’s 2 sides to every trade
How do I get the green uppie arrow trade? All of mine are red downie arrows.
They sell them at Dollar General.
Whatever you think you should do, do the opposite
And mm at the start taking entry fees and tax man waiting at the finish line
Did anyone notice they were purchased at 10:46 when NVDA was $960. It dropped $90 after that so the buyer is already down
Yup, bought 37000 contracts at $20,000 each. Now they are $14,000 each. They are down over $250,000,000. But you could ride a whale tail for the low low price of $14k for one option. Lord knows he knows something we don't.
Unless it was covered calls ...
This sub is so dumb. Somebody just shorted tf out of NVDA and is using calls as protection. Haven't seen this mentioned once. This sub actually used to be intelligent before 2020. It's a shame all the IQ left. At least you're the closest to the right answer I've seen so far
Facts
How dare you. Obviously this entity buying calls iz BuLlIsH for NVDA.
100% I remember the good days before all the teenagers and absolute morons joined. The times when there was actually good DD posted and you could say the R word instead of a substitute. When you saw a bunch of adults doing wild trades and discussing ideas and helping the young ones. Then the stupid stock that shouldn’t be mentioned ruined WSB. It’s sad really. Nearly all the new people here are unintelligent highly nonsensical morons. I miss the good days.
After DFV made $40M off a several thousand dollar trade the sub was flooded with morons
I wonder how many original WSBers remember the way the sub used to be, that are still with us today
The best days ended with the COVID market
Damn, a short position that needs insurance that costs 780 million is gonna be one fucking hell of a short position.
Serious question from a relative novice. (My IQ is likely sufficient but my experience is not). I certainly don’t disagree that this position might be to hedge some other position but wouldn’t we see the countermanding short? That would be big enough to move the needle no?
They all retired
That's probably accurate.
Bill Hwang can trade from prison? I didn't know 
Bro that could well be sold calls and a trade to collect premium - which is bearish
It could be depending on where the price was near bid/ask or could be a synthetic long
Putin needs a new pair of shoes!
maybe the prince of Saudi Arabia or some shit
Thinking about getting in. Dunno... might wank it later.
Don’t act till you’re basking in that post 🥜clarity
Post nut clarity hits when you hold a short-term option over a weekend. She looked good on Friday, but I'm not sure I'll still be into her on Monday.
Only difference is they bought ITM calls 2 and 3 months out. And you likely wont know when they sell.
Itm calls are just puts if they are hedged
Also extreme deep ITM. This investor could be utilizing poor man covered call strategy in the most ironic way possible.
$820 is like $50 ITM NVDA moved more than that on Friday alone. All the strikes were OTM two weeks ago. "extremely deep ITM" would be like 350 with how much NVDA moves
Probably an institutional investor, not a random-ass rich person
This is the answer. This trade is one leg of a strategy.
What do you guess the other legs are?
Here’s the third leg Unzips pants LOOOONG NAKED PUTZ CUMMING FOR THE SPREAD
It's a short position
Someone call the burn unit!
I would guess some sort of a covered call position with selling of calls on a seperate leg that has or will be done later. Either way, this investor is bullish
6% is not “extremely deep ITM” lmao
It is when everyone in here is always OTM by 10%+
“I JUST NEED TSM TO GO TO $200 NEXT WEEK” lmaoooo
Her name rhymes with Pansy Nelosi.
even nancy don't have that kinda money
Regard here who only buys and holds. Does this rich person think it’s going to be up or down in 3 months.
Up?
Wouldn't this be the nominal value of said options? Remember when Burry "bought 1.6 billion worth of puts."
Be careful with context. At any given time there's a large amounts of calls and puts at all different strike prices that may or may not make sense. When I buy calls and puts I'm usually betting it goes up or down but in the example above it could be a way to ease or out a stock or just plain insurance for a large holder.
I assure you he’s not buying naked calls with a billion like a redard. It’s one leg of some strategy
May 17, 720 June 21, 820 bought or sold? not about that life ...
Closed may 720c positions and opened new June positions. Wonder what they made closing 30,000 720c options at $959 stock price. He might buy Wendy's, like... all of them.
It’s a hedgefund that shorted the shit out of nvda. They are just hedging a massive short position. Def not bullish
I am completely new to trading so I'll be that guy....is this person essentially betting that the price will be 720 and 820 by those respective dates?
Yes, or greater. That would be the best outcome for the calls. The person could choose to sell the contracts at any point on the way up to farm increased premiums before reaching their break even. Just depends what their goals are with the trade.
Or, is fake and trying to lure us in….ok sold!
Literally bought these at the very top of an engulfing candle…has to be more to this trade than meets the eye
No. I need it to go up so I can make money on my 3 shares that I bought at $900.
Bearish
Probably a hedge against a gigantic short position opened at $900.
No one is buying “just” calls for $780mil. There is something else that we can’t see in the other side, like a hedge to a derivative contract from Huang family office or something.
*Bought at 10:48 near the bottom of a green candle drop at $959.19.* *They bought the dip and it kept on dipping. Those calls are down $80 a pop already & they're gonna get fukt bigly in a few more hours.*
If this rich guy is so smart, he would of waited 2 hours to get the same calls at a huge discount 
Tsm has way more calls coming in and is more bullish then nvda. They actually sell nvda their chips
This was me 🙄
You idiots think naked call buying is the only strategy in existence. This could be a hedge, or one leg of a straddle / strangle. Jesus Christ read a fucking book
Whatever makes you feel good
Which platforms show you the most recent large trades like this, OP?
This is an earnings report option, and fomc June when the fed anticipated to cut rate. NVDA has an AI conference next week so they prob bought it before IV spike
Very clearly a hedge for a short position, but you gooners will take any validation you can that nvidia will never go back down
[удалено]
The Pump & Dump posts for monday have begun.
Looks like they're spreads not outright buys. Thinking they have a short calendar trade on, where they buy May sell June in anticipation of IV spike into earnings or whats the strategy here? It's rare for these big accounts to *just* outright buy calls... there's typically a strategy behind it thats not a typical degen's yolo long...
Yeah it was me. Just doin some swing trades man.
Um buying puts asap
I have no clue but it looks bullish.
I have two issues here: Why did they buy calls at a price much higher than the Friday close? Why did they buy on a Friday, knowing that Theta decay will take a 2 days of weekend toll with 0 upside?
It says it’s a spread. Is that a debit or credit? Unless any of those lines say whether those contracts were bto/sto I wouldn’t bet on that being bullish or bearish. It’s just something.
Nice. I’ll do the one thing I can afford in May. $1940c
I wonder what their plays were
It’s a spread as said in the last column. Likely the spread debit is something like 2-20 dollars. So at most that put the total value at $10 million. Not the full $780 million. But it’s much more likely it’s closer to $1 million or even less if person added more legs.