No, it’s a spread

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This is a strategy he sold otm calls and bought itm puts. The calls were exercised not the puts. That is exactly the question: why did the call buyer exercise.

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what capital? you think i had any capital if i entered a play like that?

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It's not that beatable. It's a small sliver of a percentage if you play perfectly.

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You don’t get to use the premium, it’s held in escrow as collateral against the position. There is basically zero chance NVDA goes in the money on these, but that wasn’t the goal. The real way this trade is profitable is any spike in volatility will decrease the spread. I.e: I opened the spread and received a $29.99 premium by putting up $0.01 in risk. NVDA earnings has a 5-7% run up in a few weeks… (very possible, look around at all the insane volatility) Now the spread is “more likely” to hit, IV increases, and there are buyers for $26-$28. I close the position for $27 and keep $2.99 x 100 x 225 =$67,275.00 for ~$250 in risk. This play is about as dumb as buying single leg call options that are deep out of the money. It’s dumb, and gambling, but not as regarded as the millions of people in this sub that don’t actually understand options.

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They could easily lose a lot of their revenue if the AI companies decide they don’t need them anymore.

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Guys, Mango care about his legacy a lot. He will not want a trash market as part of his legacy. I believe he will pump when needed. So I bought NVDA calls today EZ Clap

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Yes was just scanning and saw the spreads way tighter than all other strikes. Saw it as a min risk for huge reward. If I had not been assigned I could’ve closed today for +~2000%

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No I’m a big booty Latina

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Then exercise the other leg of your contracts! There’s a reason why they are spreads and not naked calls lol You’re fine. But it’s shocking how many regards on wsb in the comments can’t even understand this basic concept. 

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