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Comment by mikestew | Hacker News Reader

Whelp, I guess those September NVDA call options I sold are going to get exercised. Who woulda guessed after the crypto fallout that "AI" would come along and bump the price back up.

Record revenues, and a dividend of $0.04 on a $450 stock? That's not even worth the paperwork. For example, if you bought 100 shares, that's $45K. From that, around September $4 will show up in your account, which you have to pay taxes on. So $3 or so net on a $45,000 investment. Sure, there were stock buybacks, but why keep the token dividend around?

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Jensen is one of the largest shareholders. With over 80 million shares that's an over 3 million dollar dividend for him.

Wait 80M shares? He's worth 4B $ then. Not bad.

He's worth way more than that. https://www.bloomberg.com/billionaires/profiles/jenhsun-huan...

This website is completely unusable on mobile.

just wait until it’s $4bn and another $3m!

I sold 600C for this Friday an hour or so before earnings. Free money with 168% IV.

It is free money, until it isn’t!

I sold the 590 :)

collecting pennies in front of a steamroller

Especially in a post-gamestonk world

very different dynamics.

- a GME ape :)

risk/reward.

I sold the Fri 560C as a covered call. The high IV was free money for little risk.

It's probably good for the long term share price if they can say in 20 years they've had a dividend for 20 years, even if that dividend was actually measly.

There's a $25billion buyback this coming quarter. That's how they distribute profits these days.

A stock buyback trades certainty of wealth transfer (you're not sure the price will go up, or by how much!) for flexibility in when the investor takes the gains for purposes of fiscal planning.

Should have sold a call credit spread instead!

For large shareholders, the dividend would still be worthwhile. From what I could find, Jensen has 1.3 million shares, so he'd receive over $200k in dividends this year. You might think that's chump change, but another source lists his salary at just under $1m; another 20% bump in liquid income is nothing to sneeze at.

This benefit is basically only to large shareholders who can't sell stock. Which might be insiders like Jensen and... anyone else? Everyone else can just sell, like, 0.0001% of their stock or whatever.

many times what a lot of people make in a year is nothing to sneeze at.

especially when it is awarded for merely having a stack of papers.

The stock is up 9% or $45/share after hours. Jensen just made $58 million. $200k doesn't pay his dry cleaning bill.

Getting all those leather jackets cleaned is expensive!

> Should have sold a call credit spread instead!

Why?

> From what I could find, Jensen has 1.3 million shares, so he'd receive over $200k in dividends this year. You might think that's chump change, but another source lists his salary at just under $1m; another 20% bump in liquid income is nothing to sneeze at.

Jensen Huang is worth $42 billion and has been a billionaire for probably a decade or so now? Any CEO with that net worth would use stock-secured loans/LOCs for liquidity. 200k is very much chump change.

Should have sold a call credit spread instead!

I'll get right on that...after I go look up what that means. :-) I'm but a simple options trader who sells calls to unload stock I didn't want anymore anyway, and the premium is the icing on that cake. Left some money on the table this time, but I otherwise would have just sold the shares outright, and I did make some bank regardless.

Gonna be missing that sweet, sweet $0.04 dividend, though.

A call credit spread simply means buying an even more out-of-the-money call along with the one you sold. It would have reduced the premium collected, but the long call would appreciate on sudden moves like today's.

Hmm…that actually sounds like a nice hedge. I’ll keep that in mind next time a similar situation comes up. Thanks.

Theta gang ftw. But I would advise you to stay away from NVDA, as soon as the first quarter with flat or decreasing revenues comes (and it WILL come), the fall would be one to tell your grandchildren about.

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