Is Nvidia Stock A SCAM?
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- Опубликовано: 26 сен 2024
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I'm your host, Felix. My journey took me from being a novice investor to an investment banker, a corporate lawyer, and an entrepreneur. Investing was my key to early retirement at 40. My goal? To empower YOU to navigate the financial market with ease and transparency, free from the conventional financial system's noise. Let's embark on this journey to financial freedom together!
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Please don;t lie: You do like to get in the middle of stuff.
lol
Whether accurate or not, it has no implication for the growth prospects of the company, which is all that really matters for the long term success of the company and its investors.
Pure fiction. Pure speculation. Misuse of common industry defined words - literally inaccurate about everything from "Investment Bankers" "Market Makers" "gamma squeeze" completely oblivious to options pricing models and efficient markets arbitrage algorithms. Oblivious to "fungibility" regulations, Rule 144 Regulations, not limited to. Not saying that option activities didn't transpire especially if its in their periodic or an 8k filing but the extrapolated interpretation is ridiculously accurate. Without debunking every possible combination and permutation just remember those options and derivatives transactions can be offset by other options and derivatives and or options on like derivatives. Do your own due diligence - especially on the theory foisted in that video. Good luck.
The short sellers always say that their manipulation not proved but well organized and synchronized play is legal. So Nvidia is giving them a bit of their financial elixir to drink. I wish Tesla would do the same
Tesla did the same for a while until they ran out of money, Nvidia will eventually too.
Someone needs to wake up the SEC
You talk too much. This is clickbait
Engagement farming. Typical grifter.
Or…… they knew how much they were going to smash targets, and wanted to leverage their returns with options. Sort of like insider trading? Perhaps not ethical, but also not illegal? It makes wonder, does the SEC regulate at all how companies buy back shares if they know how their quarterly reports are going to look? 🤔
That's illegal. FYCKING ILLEGAL
So what you're saying is....buy NVIDIA. There's legal strategies employed by the company itself to prevent the stock from falling? They are really playing 5D chess against short sellers to prevent them from buying more coke. If only Palantir could do the same. Say no more fam.
Well, you better check the timeframe first buddy
@@locobnojokofoooo12 Short sellers don't have to short stocks and create this situation. It's really them who make this all possible.
It feels more brilliant than sinister…Elon tried to joke with shorts Make red silk boxers for sale) Cathy wood was targeted in a ruthless way by shorts … si if NVIDIA is sending this message and showing this strength ..yeah…..
Exactly, also lost in the mechanics of the juggling game that is involved in buying call options and repurchasing. Their own stock is the fundamental question of why? It's easy to get lost in the house. And forget that they're doing it because they have some knowledge about their stocks ability to appreciate in the near to midterm that makes this complex mechanic something that will be profitable for them to do. What is that secret knowledge??
Well, it's now March 2024. The knowledge is in secret at all, when they made those purchases, they were already aware of how quickly their incoming order flow was ramping, They were already aware that major cloud service providers were asking for gobs and gobs of h100 systems, They were already aware that their own internal research and development teams had created multiple powerful AI models across multiple verticals. All of this stuff was already known to Nvidia leadership at the time that they saw this opportunity and said hey. We can make a lot more money if we employ this mechanic and so they did knowing the stick price was going up on fundamental reasons anyway. And now here we are in the future after they have been wildly successful doing it looking at the mechanic and going. While I wonder why they did it, forgetting that they had that extra knowledge and that knowledge is what gave them the confidence to perform the mechanic, knowing that it would be successful as opposed to hoping that it would be successful.
Short squeeze your own stock? Brilliant!
Thank you sharing your thoughts!
Buddy they have 2.5billion float
You're so dumb lol.
Good insight. Good to know. So as long as Nvidias growth story works they have money to spend money on protecting their shares against short sellers. Hedging their shares. The risk is obvious. Once this narrative ends the crash will be much more devastating. We should not forget that shortselling is important for the hygiene of financial markets.
Thank you for sharing your thoughts on Nvidia's growth story and the risks associated with short selling. It's important to consider all angles in the financial markets.
Idk find this too complicated i find it ridiculous!!! with all going on with Nvdia you going to listen to ONE person who probably thinks he missed it. Absolutely not listening to this BS I read non stop knew to buy Nvdia 9 years ago & in ALL that time NEVER heard ONE person say anything like this!!!!
Its a common practice now a days. Pretty straightforward and simple if you understand options
Love the insight, so much going on behind the scenes that a retail investor hasn't a clue about, so thankyou
I'm glad you found the video insightful!
Citadel the king of ftds. 65 billy securities sold not yet purchased lol. Once Nvidia implodes shit gon get wild.
Thx Felix! These video actually makes me more bullish on NVIDIA:
- Objective of company repurchase share is to make the share sell at a "fair price", in the eyes on shareholders (and company management)
- If the means is legal, then the way presented here only proves the mgmt is smart
- It also partially explained why $NVDA went up like nuts from $522 within 2 months
- My next Q will be can and will $NVDA doing the same trick again in Q1 24?
- The bottomline, are the sales figures of $NVDA real? Will the growth of sales as projected? Will Blackwell deliver as it promised? (Note that $NVDA is selling cheaper than $AMD in terms of PE, 75 vs 343)
Thank you for your kind words! Your support means a lot, and I'm glad the video helped shed some light on NVIDIA's strategies.
😮....That's a pretty genius move on their part.... It's almost like creating a shortage in the market for any particular item and then being the only one to sell it making you indispensable. Crooked but very smart and genius on their part. And legal because nobody has ever really complained about that strategy. But maybe the loophole will be closed one day to stop transactions like this.
Since this a squeeze operation, it only benefit small numbers of people, those who are informed and those spot it early have the guts to ride on it. Relatively most of retail investor would end up losing money, when Wong and the insiders take profit and include those who don't aware to get off the ride timely enough.
This remind me those scam back behind the heavily manipulated AMSL stocks, only the management could do it efficiently enough, not outside market maker. Might be some MM also deliberately involved, because I believe the mgt know the maths should be more complicated than what we think.
Very logical explanation. I'll keep my eye on it. I currently am long on AMD.
Thank you for watching and sharing your thoughts!
I'm seeing this 2 month after posted and obviously NVDA is killing it. Why wouldn't every company with upward momentum do this? Seems like it would be standard operating procedure.
This looks like Wong is using shareholder capital to squeeze up the stock price for Wong and the insiders to profit more on selling their shares. This is definitely an arranged plan with clear intention because insider selling need to submit form to SEC and have to compile with timing requirement.
Great video. Serious question: IF this is what Nvidia is doing, at some point aren't the market-makers going to figure this out and then subsequently also figure out a way to reverse their losses (aka exact their revenge) against Nvidia? While this might be legal for Nvidia to do, I got to think there are interests that would nonetheless be very unhappy about it. I don't know if it would take a bunch of hedge funds working in concert to reverse the losses but it doesn't seem implausible. I would be skeptical of this was a consequence-free tactic by Nvidia.
Thanks for watching and sharing your thoughts! It's definitely an interesting topic to consider.
When you buy a call option it causes the market maker to hedge their position by buying the stock. You know, TBH, most calls I buy don't work out that way.
Thanks for sharing your insights!
Nvidia / AMD owned by same Family, another illusion of choice.
Very clever management, but should not be legal 😊
Thank you for sharing your thoughts on the video!
Maybe they are selling cash secured puts instead. If I believed my revenue and growth was going to outpace the market, I would sell puts at the equivalent market relative floor of my stock price. I would get a discount from the premium and buy any dips below the expected value of my stock and benefit from the high IV.
Felix, seem option trading is more for experts, since there seems to be a multidimensional (not straightforward) thank you for explanation.
Thank you for appreciating the explanation! I'm glad it helped shed some light on option trading.
Why are you using so much click bait in the last recent months
This is what TLSA did.
As a green in this field, very well explained, I am sure this is going on for a long time.
The question is do they reveal the contribution the call option profits make to their overall quarterly profits. It could also exaggerate a loss if the share price falls.
Real Market makers do NOT create CALLs out of thin air. They will hedge their position if it is large enough. This is selling covered call options. Any market maker that is selling naked CALL options is open to big risk.
Indeed. They’re not a market maker. Selling naked calls is outright speculation, not market making!
Isn't this what Felix said? Sell a call, buy 100 shares - hedged. What I don't understand is how the market makers make money like this ( income from call is always less than cost of 100 shares ).
@@adrianjames3814 all they need to do is sell the stock for BE or better and they win.
If the information you're presenting is accurate, it suggests potential illegality, as NVDA's management are purchasing call options to secure the right to buy millions of shares at elevated prices, thereby artificially inflating the stock price. This behavior involves "trading based on inside information" and requires a thorough investigation by the Securities and Exchange Commission (SEC).
@FelixFriends are you short NVDA? Can you answer this, for clarity?
Why do I have to give my phone number to sign up?
I might have signed up if not for that. Combatting spam calls is a never ending task.
disliked for the click bait👇
So, I would like to know if SEC think this type of buy back practice (7% higher than average price, and the use of the buy back is to squeeze Makket Maker) is acceptable and fair to all investors of us stocks. I believe Buffet would not approve this type of practice. If allowed to continue. the mgt would become more greedy and irresponsible onwards!
Nvidia to the moon
I remember that video about when they recognize revenues, I held out, missed the run but no regrets because Id probably would have ended up burned in the long run.
what worked very much in the past does not necessarily work today.
It's not a scam. Can't you see the market capitalization. What does market cap tell you? The high demand of the stock is increasing the numbers of the shareholders, which is also pushing up the price.
Good video Felix. Not too "heady" at all. Interesting to (further) learn the mechanics of trading. Thank-you.
Thank you for your feedback, I'm glad you found the video informative!
Dull Conspiracy theory ? 🧐 are we imagining flying elephants? Definition of unsettled share repurchase: An unsettled share repurchase refers to a situation where a company has initiated the buyback of its own shares but has not yet completed the transaction. This can occur due to various reasons, such as pending regulatory approval, processing delays, or incomplete paperwork. Until the repurchase is finalized, the shares remain in a state of flux, not fully belonging to either the company or the shareholder.
Yep, I knew Nvidia was propping up the stock, just didn’t know how. There’s a reason they hired those crypto bros to pump it up. Thank you for explaining just how they are doing it! I can’t believe not many people can see it
Thanks for sharing your thoughts !
Its been 3 days since this video was dropped. I guess it was bait n switch cuz its still here.
TA is very familiar and been using that for years but this invesment banking side and marketmaker are very interresting.
Thank you for sharing your experience! It's awesome to hear that you're finding the content interesting.
Fading Tech for Energy, Tech had a good run
This is nothing new, ARKK did this with TSLA back in 2020-2021 the story doesn't end well btw 😂 market makers are not stupid, if they had any chance of getting burned by selling NVDA calls they would just jacked up the price in the options making them less attractive for buyers and tanking the stock price while doing so
😅 the mechanics of it might be different but the end goal surely must be it. 😜
NVDA is the best investment I made. It will continue to move higher as it is the cheapest AI stock right now in the market based on a forward PE basis. A top stock to own. Brilliant strategy by NVDA buying call options. The share repurchase programs companies implement have been in my view shady but legal. I disagree with this being allowed but it is legal.
Thank you for sharing your success !
Interesting Thanks,but please not always those scandalous Headlines to get clicks-getting so boring
I appreciate your feedback and will definitely keep that in mind for future videos.
I love how Nvidia say 25x performance increase - not 24.3, not 17... just so happened to turn out 25x. Tesla found a 3x performance increase of chips that were hyped by Nvidia at 10x. But what do you expect when the shareholder meeting is in a concert hall. The word performance is very fitting.
Yeah, well if I wanted to fix my share acquisition price I would buy calls and exercise. The call seller, NOT taking risk, holds the shares to sell me. Any market maker selling naked calls is not a market maker they’re just fools speculating!
Seems to be a subtle smear of Nvidia management who are engaged in a reasonable share buyback operation.
Probably best to DELETE this video NOW ... as it is making people dumber with each view.
That headline is the mother of all click bait.... Let's see if you have any meat on this dangled bone.
It's not a scam it's just overvalued. If it dips hard that's simply a buying opportunity
So the morale of this story is ? Buy or get rid of it
I dont see how nvda would cause a multi trillion dollar squeeze with 178 mil in call options. If that were the case, every company would squeeze up all the time. To me this just sounds like shorts crying and finding an excuse to justify themselves
You have to think of the notional value as the gamma ramps up. It's a mechanical process and works both ways with outsized effects.
Interesting. Not sure I understand the actual mechanics other than they have found a way to create a short squeeze through buy backs. Thx for sharing. What are the potential implications for investors? As long as they hit their numbers, I am guessing it won’t matter much.
Thank you for engaging with the content and sharing your thoughts! It's discussions like these that make investing even more interesting.
So Nvidia is really good in making money with their own stock as well. So Felix....what is the big problem here? Taiwan semi will double the amount of chips sold by Nvidia by the end of this year. A lot money going for Nvidia.
I love this video very interesting and learning a whole new perspective.
Thank you Great Master a financial wisdom
Glad it was helpful!
Damn, that was interesting, I need to get NVDA on Monday. Maybe they can make an ETF with all stock buybacks using options to Gamma squeeze.
Yield max has an ETF based on Nvidia stock movement. The ticker symbol is NVDY.
Stock market manipulation at least that’s what I call it
Brilliant Felix, Beautiful Wisky!
Yes, you are all right, but when every morning, they want to crash the market under pressure and put stress on shareholders, this might be a good defensive reaction.
Thank you so much for your kind words !
are you net short NIVIDA?
36 750% OF RISING SINCE 2009 LOL TSLA DONE ONLY 14 000% SINCE 2011
Great video. Very interesting insight. By theory an Investment bank has to limit its exposure to each client so volume created by each bank might not be that significant. But obviously Nvidia can work with many banks simultaneously like our friend in Archegos.
Thank you for watching and sharing your thoughts!
Been beating myself up a bit that I sold my 53 shares of NVDA at $303 each back in May 2023. Now thinking of liquidating a few other investments to rebuy but afraid to do so. I also currently have 500k in savings making me next to nothing.
Everyone needs a Margin of Safety in their portfolios and just remember, It's time in the market versus timing the market.
Everyone needs a Margin of Safety in their portfolios and just remember, It's time in the market versus timing the market.
Remember, it's time in the market rather than timing the market. Everyone needs a margin of safety in their portfolios.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, i think it’s best you reach out to a proper fiduciary for guidance
Thank you for sharing your experience !
Very interesting Felix and new to me but I liked it
Thank you for watching! I'm glad you found it interesting.
Don't they need to already own the shares in which the exercised option will allow them to sell above what they paidanyways ??, unless your saying they sold naked calls, and then immediately bought shares which seems to be the same thing essentially.Your saying that NVDA is just buying back shares via options in order to force MM to buy shares to prop price up?? Then why don't they just buy the shares? I already know it's a scam, but you should have explained how it will unwind so we can get paid on some puts when the house of cards crumbles.
If you aren't cheating , you aren't trying. 😉
But if the market maker were to buy NVDA stock as soon as they sell the call option to Nvidia then there would be no waiting for a "squeeze" scenario to take place right? Also, if one were to buy enough shares (vs. options) in the open market, it would also have the effect of moving the share price up. Generally speaking, isn't one of the main goals for buying shares to help support the stock price at higher levels?
Very insightful Felix, thanks 🙂👍so happy you share your knowledge about market makers role, and stock price movements
I'm glad you found the video insightful!
Yes interesting.
Thanks so much for the education Felix!
I'm glad you found the video educational!
Market makers are not forced to sell call options and they can set the price of the call options. The fee paid for the call options are non-refundable and are paid separate to the money that will be used to buy the shares when the option is exercised.
Interesting! Never put anything past anyone, when it comes to anything.
I'm glad you found it interesting! It's always good to keep an open mind.
with that gigantic forehead, this guy must know what he's talking about
Haha, thanks for the forehead compliment! Big brain energy over here!
Anyone have the title or link of the original video he referenced???
Mind blowing! Thanks for explaining this so clearly.
I'm glad you found it helpful!
Great video! Thank you for the insight! ❤
Glad you found the video usefull !
The funny thing is these people will just keep buying as the big investor sell out and laugh.. they don’t understand until they lose everything. It’s kinda sad.. I’ll buy once it drops back to 450 a share
If that is a call option what is a put option?
How does that result in NVDA paying 7% more than market for the shares they bought ? Shouldn’t their call positions greatly increase in value as the shares rise and as a result pay less for shares ? And how is it possible that this is not disclosed on the financials ? I get it’s not on the BS as they close position by quarter end - but shouldn’t this be disclosed in audits or show up under cash flow statements ?
Thanks for sharing this 🎉❤, love to see more!
I'm glad you enjoyed it! Stay tuned for more content.
Really enjoying the info Felix. Thanks for all the great lessons.
I'm glad you're finding the content helpful!
As usual, very interesting information for Nvidia shareholders , thanks Felix !!!
Glad you liked it!
Interesting video, thanks Felix. So how does a market maker make any money if every time he sells a call option he has to spend much more money to buy 100 shares of the underlying?
Thank you for watching and for your question!
If i had nVidia stock, I would sell half now. Maybe buy the dip later
For any stock I want to buy, I look at gross margin, ROIC, EPS growth, revenue growth
and free cash flow margin. Are those improving or not. I have a video on my stock
selection process here ruclips.net/video/U3M5IfGi8Ds/видео.html
So, Nvidia paid a premium for Calls options, then exercised the options which were out of the money by $40+ at expiration? This speculative idea makes no sense. It is possible the option seller was doing covered strategy, but then again why exercise out the money options?
they're round tripping.
Guessing it is so important because it gets views.
I don't like management gimmicks to manipulate stock prices.
Short sellers can eff off. I'm all for it
Good vid and good explanation 👍
Glad you found the explanation good!
So as options are traded in chunks of 100 shares, itd be interesting to know how Nvidia report that exactly.
Do they say weve bought back 1m share, or weve bought back $1m of ahares for example?
The differnece could be huge, if theyre reporting share value, they may be only counting the cost of the option, which is a lot lower than the shares that have been leveraged so they could potentially been cauing huge waves of leveraged buys from the market makers, at very little cost to them, and people here might think its only .1% of ahares traded but actually once leveraged could easily be 1% or more which id argue is material
Much appreciated video!
Glad it was helpful!
My wife who is a medium says they are not manipulating their own shares. So, if that is true? Perhaps it's a projection of someone's bad intent onto the company? Just saying? Jensen doesn't need to do this. He's the real deal. His vision and excellence and execution are what drives NVDA price. There maybe other manipulators.
Is Nvidia still using third party companies that they have a stake in, using them to buy their chips......unless I mis-remember?
You guys are complete morons. Meta js now forced to buy 30 billion in gpus too? Jesus Christ
Thank you
You're welcome
Interesting
💨💨🚀 Nvidia