History tells me ... eh, no comment.

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It's the Time Decay aspect of it that has me off-balance a bit. When I buy an equity, I generally have a price target in mind. It may change, but there's no clock ticking in the sense of expiration, just opportunity cost.

I don't see this being a large component of my investing activity, but I can definitely see the appeal. I'm thinking about buying Puts on some holdings that may have some temporary downside risk in the next 2 quarters. Looking at you $RKLB.

 

Makes sense. I used to play options on biomedical/pharmas, they're super volatile so you buy a lot and sell a covered call, the premiums are pretty good pretty far out of the money. So, if it hits, mega donuts. If it doesn't, you still get a decent dividend. I just kind of fell off of caring about it and haven't been at it for a while.

Options can make you a lot of money, but the downside is you can lose it all. When a stock dives 7%, you lose 7%. When a stock dives 7%, that call goes to pretty much 0, and it's all gone (puts, similar).

 

Go take a look at AMZN. It survived the dot.com crash. Moral of this story? When NVDA tanks buy LOTS more.

 

Industries don't die. But boards/C-suites can kill a company with bad decisions in that same sector.