NVDA bull thesis supported by $150B buyback and AI security launch; technical resistance at all-time high noted.

Nvidia announces the largest share buyback in US history . The multi- trillion-dollar giant announced its agreement to repurchase $150 billion worth of shares. This brings the total value of authorized buybacks to $235 billion, and the company's shares are seeing a significant rise on the back of this news, even amid a weak market.

Meanwhile, as scrutiny of artificial intelligence increases, Nvidia is launching a software platform designed to protect AI systems from controls imposed by developers.

The company notes that its new open platform for systems security enables companies to restrict what systems can access and monitor their activities. This launch comes in the wake of incidents in which AI systems allegedly went out of control and infiltrated test environments.

Nvidia reports that Microsoft, Cisco, Oracle and other technology companies are involved in this project.

As you know, this is great news for the entire artificial intelligence sector. Jensen Huang's announcement of this agent security platform has eased tensions and panic surrounding artificial intelligence and its potential to destroy humanity.

They also made another important decision, which is that their stock is the least valued in the market. Therefore, they increased their share buyback program to $235 billion, an increase of $150 billion.

Everyone is talking about Nvidia's rating. You have given your stock a strong boost. It is approaching its all-time high. As you know, he has a very good chance of reaching this level.

I don't know if it will arrive, but it's now back up to or near $230, which is very positive.

Repurchasing shares is similar to Jensen Huang stating that the current valuation is the valuation of our shares. This is the optimal investment strategy. This comprehensive security platform, I believe, alleviates concerns about artificial intelligence. I think it's a good day for AI stocks .

Well, I think if you listened to some of Jensen Huang's comments as he described this open proxy security platform , it would act as a proxy for browsers, right? It will be an engineering solution to a problem that has not been monitored or adequately monitored so far.

And that's what he did, because he needs artificial intelligence to excel, just like everyone else, right? Therefore, he resorted to an engineering solution to address this problem.

Then add to that, as Kevin mentioned, NVIDIA’s valuation , where the projected earnings multiple was 18 times, while competitors have double or triple that number for some of them.

So, yes, the stock price was low . So why don't they buy back their shares?

This sounds more like Warren Buffett's actions at this point, as he tells Wall Street: "Our stocks are cheap, and we will invest more of our free cash flow in buying our own stock, rather than investing in other companies or buying other companies' stocks right now."

So, yes, it is a very good solution when you can put in place a plan for developing artificial intelligence with better future guarantees for all its users.

You mentioned this in your talk about Nvidia and this new open proxy security platform. Their partnerships are wide-ranging across various fields of technology. So, this is likely to be a positive thing, as it will enable them to sell more chips, which is what they are aiming for, and they are trying to sell all of their products now.

My trade today is a Qatari buy option. It extends for a few weeks until the expiry date of October 16. Buying a call option at 230 at the current market price. Looking at this week, the expected movement until October 2nd is, I will summarize it, $7.40.

So, buy the call option at 230, and sell the call option at 237.50 on October 2nd, which is a diagonal call option at $7.50, Tom.

This option gives you a long delta of around 23, 22 , 23 in Nvidia stock, so it is skewed to the upside, but it includes a built-in vertical spread strategy that gives you more power in this spread compared to a calendar spread which is considered more negative.

This is a calendar spread with an embedded vertical spread, Tom. The loss you were looking at was around 590, and it's now trading at over 6.25, so the stock is up now, Tom.

Here, a bullish Qatari buying strategy spanning two weeks, and Kevin has given us an example of a trade. We move to monthly options with a date of October 16th that expire after 18 days, and we buy the call option at an execution price of 230.

This is the positive side of this strategy. In the short term, the weekly call options are being sold on October 2, which expire next Friday, i.e., after 4 days, at an execution price of 237.5, which would represent a new historical high if the stock reaches it.

But as you can see in the risk profile, if you paid the $5.90 discount, as Kevin mentioned, the price is likely about $0.30 higher now because the stock has gone up about another dollar since we last looked at this.

But the discount you will pay will be your return, so you are still paying less than Qatar's offer of this buy option.

As you can see in the risk profile, the profitability peaks at or near an execution price of 237.5, which represents approximately one standard deviation of the market call option price.

Since you are paying less than half the bid of the $7.50 bullish call option, any price above approximately 232 will make you a profit.

As Kevin mentioned, with the expiry date approaching in the next four days, you will have the opportunity to extend the put option on the call option at an execution price of 237.5.

Remember that there are three weekly options , which expire on Mondays, Wednesdays and Fridays. Therefore, you can choose which option you wish to extend to the series of options you want to create balances.

Building up balances lowers the breakeven point, thereby reducing the risk in this transaction . So, keep that in mind.

There are also some allocation risks on the short buy option with an execution price of 237.5 over the next four days. But the idea here is that the sooner you start accumulating funds, the greater the potential profitability, and the lower the risk each time you are able to accumulate funds on any potential extensions when the markets open.

Therefore, this was an aggressive strategy, but not excessively so, because Kevin does not need, in percentage terms, a large price increase to break above the 232 or 233 level to reach the profitability range in this bullish option.

I, Kevin, took a more passive approach, choosing the monthly purchase option on October 16, 18 days before the expiry date . I looked at the highest level the stock reached previously, around 236.5, but that was in May, and it's its all-time high.

So, we are still about 2% away from those levels.

Therefore, I sold a vertical call option at $5, I sold the call option at an execution price of 237.5, and I bought the call option at an execution price of 242.5. That is, for a price of only $5, making a profit of approximately $1.40.

The stock is currently trading at a higher level, as we mentioned, with its price rising by $1.60, but this profit you are making is what you can achieve.

So, if you raise $40, that is $140 with a risk of about $360 , but that's much higher than $242.5, Cavett raises the breakeven point in this case to $238.90. Therefore , I have a safety margin before losses start in this case.

Yes, but Tom's short strike price on his vertical option is higher than the stock's all-time high, and therefore, in addition to the paid balance, the price becomes higher. The breakeven point is higher than the stock's all-time high.

So, you know, the debate you should have with yourself if you are thinking about trading or investing in this stock is: Do you think it will surpass its all- time high or not? Because he failed to overcome it several times.

We have no idea whether the stock will surpass it, but this stock tends to pull back when it reaches an all- time high.