[kinghajj]

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.

[haldujai]

> 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.

[mikestew]

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.

[kinghajj]

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.

[mikestew]

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

[kikokikokiko]

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.

[Vvector]

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

[wincy]

Getting all those leather jackets cleaned is expensive!

[loeg]

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.

[catchnear4321]

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.