NVIDIA long-dated calls for cheap convexity
The host argued for expressing the AI adoption thesis through long-dated NVIDIA calls to gain defined-risk upside convexity while volatility is cheap.
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The Callback
Integrated risk: correlation, single-stock vol, and cheap insurance
22 weeks between these two statements.
The guest argued for a relative-value options trade: selling expensive index volatility (via QQQ or SPY calls) to fund the purchase of cheap single-stock calls, particularly in names like NVIDIA and Tesla.
The host argued for expressing the AI adoption thesis through long-dated NVIDIA calls to gain defined-risk upside convexity while volatility is cheap.