I purchased an Nvidia call option the day of the Deepseek announcement, the day Nvidia sank over 15%.
Option purchased:
Expiration 12/19/24
Strike: $132
Price: $19.55/share ($1955 total)
As of today, the option is worth over an $800 profit. My plan was to hold this through minutes before market close on the 26th, before Nvidia Earnings report. My assumption is the option implied volitility will rise far more raising the price of the option.
Does this sound right, or am I missing something?
Another idea I have is to 'roll' the call into a March call option with a higher strike price. This would allow me to recoup my investment (with a small profit) and still have an option in case the stock significantly rises from earnings.
Any thoughts?