A trillion dollars here, a trillion dollars there, and pretty soon you’re talking serious money.
On the surface, Nvidia is a massive success story… A semiconductor stock few had even heard of ten years ago takes the market by storm and rides the AI boom to the Trillion-Dollar Clubhouse. It has a $3.01 trillion market cap, to be precise. In terms of market cap, it’s neck and neck with Apple as of today.
As an optionable stock, its options pack around two- to two-and-a-half times more implied volatility 30 days out than its fellow big boys like Apple and Microsoft.
In fact, as I’ll show you in a second, if you volatility-weight those three, you see Nvidia behaves more like a $7 trillion stock. It’s a systematic (not systemic) risk to the markets; it practically owns the NASDAQ and could do serious damage to the S&P 500 if things go south. .
Sounds scary, right? Well, now I’m going to show you how you can actually trade that sucker…