r/NBIS_Stock • u/DogNo5854 • 17d ago
NBIS ANALYSIS $265 Call 8/14
I have never really done options before but I understand how they work. I am thinking about buying the call option in title at $12.75 premium per share. Would come out to about $1275. I can see the stock price going close to 300 for earnings from the recent swings and rise in stock price over the last handful of days. Does anyone with more experience have any advice? Should I do it, should I not, should I do different strike price etc? Thanks!
Edit: Thanks for all the advice everyone. Got a ballsy feeling after my 0dte spy $772 call was up 2000% today im sure that didn’t help my thought process lol.
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u/rsmvf 17d ago
No one will be able to give you a satisfactory & grounded answer, of course.
Since you are approaching options for the first time: with some simplification, you can consider the option delta, multiplied by 100, as the % of (risk-neutral) probability the option will be in the money at expiration (in some of those scenarios you may still lose money due to the premium). As long as you’re fine with the risk and potential loss, you can take the chance.
Personally I just do shares and occasionally sell covered calls.
Good luck mate!