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Do you want to become an Nvidia millionaire? If you want to be a millionaire in Nvidia, I have a massive update for you in this video, as well as a couple of option plays, leap option plays that will make you a lot of money without having to put up that much upfront capital. My massive update will talk about price target on Nvidia, latest research on Nvidia.
I'm going to go over the technical analysis. So, let's not waste any time. Let's jump right into it. So Nvidia is currently trading for $141 per share and this stock has been on an absolute tear within the last one month. The stock has had a 24% return and that is really massive for a one-mon return.
However, what I see happening in the future is even bigger for Nvidia. And if you're invested in Nvidia, I strongly believe that you can become a millionaire even if you have, you know, not that much capital in Nvidia. I'm going to show you the best ways to play Nvidia. But first of all, I want to talk about the basics and the fundamentals of Nvidia right now.
The PE ratio is roughly 46. Earnings per share is $3. Analysts have a price target of $172 per share as a one-year estimate. Now, Nvidia doesn't pay a dividend. I bet on Nvidia before earnings because they were likely to beat earnings as they have been basically every single quarter. If you have looked at Nvidia's data, you will notice that Nvidia continues to beat expectations every single freaking time.
Okay, so being short on Nvidia is, in my opinion, a dumb move because AI is still growing in 2025. We are still what I believe to be early on this trend. AI has been around for some time. There's a lot of hype, but the advancement in AI, we can't even refute that. The sales of Nvidia have been skyrocketing.
So, what I saw from institutions, by the way, before earnings was that there was a lot of call option volume. To be specific, there was about $78 million in calls placed on Nvidia before earnings. Institutions likely gather data from Nvidia's supply chain. That could be logistics, their power suppliers, and essentially institutions which have advantaged data sources knew that Nvidia was going to rise.
And I'm happy that I said buy call options and be in Nvidia before earnings because what we saw was a huge skew, okay, a skew for call option. That means there was way more volume on calls versus puts. And that is a good indicator that there's a lot of investors and a lot of potential insiders that are looking to profit off of a move upwards because a call option makes money when the stock goes up.
So, I believe that Nvidia still has more momentum to run. Like, if we look at the stock, it has risen essentially from these really cheap levels of under $100 per share where if you would have bought Nvidia here, you'd be up over 40% of your money in literally one month. But I want to go into the chart and I want to talk a little bit more about where Nvidia has been and where it's likely headed and what kind of valuation this stock will likely have.
So, Nvidia was trading very steadily and going sideways around the $148 per share mark. And essentially, this company, you know, peaked a little bit over $150 per share. And after all the volatility the market and the Trump tariffs, etc., now Nvidia is basically heading back up to $150 per share in the short term.
But what's really crazy and what I really believe Nvidia is headed to is $200 per share. And I'm going to talk about the valuation and why this makes sense on a longer term grand scheme of things. In the short term, I believe analysts see it as around 170 per share. Yes, I also think within the next 3 to 6 months.
Now, in terms of 2026, if you buy a LEAP option, which I'm about to show you some examples, I think that's where you can really print some money. Now, mark my words, $200 per share isn't really a question of like if it'll happen. It's just really a question of when it will happen. Okay? If we imagine that sales continue to grow and let's say that we have a compounded annual growth rate or a kagger c agr right of 20% over the next 10 years okay this is what's important to look at okay if you're a beginner investor and you're looking at videos of hey where is Nvidia going tomorrow that's a novice way of looking at things what you really want to understand is where is Nvidia headed in the next 5 to 10 years and when you see that longer term picture right then you know where we are today and where we are going to be in 5 to 10 years.
And then this picture is much more clear because we know we have point A and we're going to point B. If you look at a shorter time frame, we don't really know is it going to be below? Is it going to be above? We don't know. It's difficult to say. And anyone that pretends to say it is likely scamming or or or really trying to sell you the idea of something, right?
What we do know is that long-term if a company continues to grow earnings, continues to grow revenue, investors will want to be invested in the company because it's making too much money and investors want a piece of that action, right? So, if we look at a compounded annual growth rate of Nvidia of 20% over the next 10 years, then essentially they're going to have sales of $800 billion.
Okay? So, $800 billion in 10 years. Now, if we look at their price to sales ratio today, it's 26. Okay, which is actually very high. It's actually a very high price to sales ratio. I'm typically looking for 15 or less. Okay, but here's the thing. Let's just say in 10 years, right, Nvidia has that 20% annual uh compounded growth rate.
It achieves 800 billion in sales. Okay? It achieves that long-term picture. And I'll tell you why it's important. Because the long-term picture, we can say what the price is worth today by looking at the long-term picture. So 26 is the price to sales ratio. Let's say that it halves, okay, that it goes half.
So instead of 26, it's only 13. And I just said under 15 is good. Okay, if it's 13 and we have $800 billion in sales, right, we're essentially looking at a $10 trillion valuation. Okay, $10 trillion market cap. And if we go to the summary right now, okay, we go to the summary of Nvidia, we see that it's about $3.5 trillion.
So, we're going to go from 3.5 to 10 trillion, which is a whole lot of value. I know if you're upset, oh, maybe Nvidia can 10x. It's not likely to 10x. It's really not likely. It's likely to 3x within 10 years, which is actually a pretty decent return. But the good news is there's a lot of money that you can make off of Nvidia, even if it only goes 3x.
Because if you use call options and you use LEAP options, they're leveraged instruments. A LEAP option gives you so much return that you can make a lot of money even on a 10% move. Okay? So, I want to show you what that looks like. But before I want you to be really careful cuz I know a lot of you guys just watch my videos, you're subscribed and thank you for that.
That's great. But you're not part of my Discord. And if you're not part of my Discord, then you don't fully understand risk management. You don't fully understand position sizing. you don't understand managing a trade to the high degree level of my Discord members. So, I want to give you the simple rule before I give you the trade.
Be careful with how much money you put in to a LEAP option because although a LEAP option replaces stock, you don't have to have as much money in a position, it still is a leveraged play. And if Nvidia ends up going down, which it can, nobody can predict the short-term future. Okay? If it goes down, you will obviously lose money in the position.
Therefore, for risk management, keep this position at 5%. That is the simple rule. Now, I'm going to jump into my portfolio, which is doing pretty good. We have lots of profitable positions right now. And I showed you guys yesterday that we had a student named Eric who made a lot of money with me. He's just traveling the world.
So, I love to see stories like that. And um I just wanted to share that with you in yesterday's video. Yeah, I'm excited to show you this position because I think that it is going to be very profitable in the long term. So, if I go to trade Nvidia options and we're going to go to buy call option, we're going to go to an expiration date that it's going to give us a lot of time.
Why is time important? Well, again, we don't want to predict the short-term future. If you're a novice and you're watching videos and people are trying to predict the short-term future, oh, it's going to, you know, this price tomorrow or next week or even next month, that's a load of BS. Okay. Um, so we want to take a long-term view on uh the stock, which I said 10 years, we got we got the stock going to to 10 trillion.
In the next 12 months, I think it'll be a $200 stock. So, given that view of a $200 stock, um, we want to look at a one-year option. Okay? So, that's going to be June 18, 2026 expiration. Right now, I'm going to scroll down and I'm going to pick a LEAP option, which this is already a LEAP option based on just the expiration date alone.
U but now I'm going to go for something that is in the money. Okay. Now you can see here that this is a 75 delta. The open interest is 20,000. So there's 20,000 people trading this leap option right here. That means there's a whole lot of interest. Okay. Now the bid and ask spread is very good. It's it's not even good.
It's fantastic. Okay. When you look at a majority of options, they're typically going to be a lot wider bid ass spread than this. Especially if you're going for a LEAP option. This leap option bid is $ 39.90, ask is 410. That means you have very little slippage cost. The the the cost here is essentially 20 bucks and you're going to go for the mid anyways.
So when you execute on this option, you're going to enter a a price of 40. You're going to go for the mid price, right, between the bid and the ask. So you're only losing 10 bucks. Amazing. Amazing considering that you're going to that you're paying $4,000. Imagine that as a transaction fee. So Robin Hood, although it looks free, it's not really free because there's a bit of ask.
market makers making money on you every time that you trade, which is again why in my Discord community, we only we we we really just stick to mainly that monthly income. Okay, we're not really doing too much day trading, although I am doing a little bit more short-term on certain ETFs, but uh that's besides the point.
We're going to go to buy call option. Let's let's go over this example. So, I'm going to purchase this. It's going to cost $4,000. Now, our break even here is 160. All right. So, Nvidia has to go to 160 for us to break even at expiration. Okay, this chart right here shows you what will happen at expiration.
Remember, you can close this for a profit early as well. You don't have to hold an option until expiration. So, what I would be looking at with Nvidia is essentially because I believe it's going to go towards $200 per share. Um, if it hits 200 anytime before, you're going to be in so much money. You're going to make so much cash.
You're not going to know what to do with it. You're going to have stacks of cash in your house. Okay? But if it if it goes to expiration, let's talk about that. Then basically, you're $40 in the money. Okay? Or essentially, you're $80 above the strike price. Okay? You're $80 above the strike price. You're $40 above the break even.
You will double your money. Okay? So here, what's nice is if Nvidia hits 200 on this leap option, you'll have $80 in total value. You spent 40. So you'll literally flip 4K into 8K. Okay? So you're flipping 4K into 8K and in a year, which you know, I know some of you guys have taken lots of risk and gotten higher than that, but if you think about a relatively medium risk trade, this is this is the one.
this is literally the one to make especially if you're bullish on Nvidia. Uh now let's talk about what can happen before because what can happen before is it can go up in the short term and you can still sell it for a gain and I think this will happen. I think as Nvidia will head towards 200 this leap option may actually be more than it'll be worth more than um than even that 8K amount.
they can literally go to 10K before expiration. If Nvidia really heads up to $200 per share much faster than expect there's a lot of time left, then this option will explode in value. It'll be so valuable. And I think that can happen because Nvidia's financials are exceptional and we have a whole year um to basically see this option play out.
With Nvidia reporting credible financial performance every single quarter like clockwork, it might be difficult for investors to to really see an issue in this business. And if it continues to have really good earnings, it doesn't really matter that there's some restrictions on China. That situation will get resolved at some point.
Investors will see we have huge earnings growth and they're basically going to pile into the stock even more. So, it's really important to understand that if we get a short-term rise in Nvidia and it it hits $180 per share within the next three to six months, again, we're kind of in a very good market right now.
again, then you would want to cut this position in honestly you can you can be up to like $10,000 in value turning $4,000 into $10,000. And I think Nvidia can do this because it has so much business from the hyperscalers, right? They have of course they have a large chunk of their revenue coming from those businesses which is is a risk, right?
there is some risk because if any of these companies decide that they want to diversify and maybe they want to renegotiate um pricing, maybe they want to have an in-house chips, which is possible, then Nvidia may be hurt slightly, but the overall AI play, there's no other company that's benefiting more from the AI uh revolution and the AI growth and the AI uh demand right now than Nvidia.
So this is one of the smartest plays that I think you can do with Viva options. Of course, again, position sizing, risk management, and please be aware that you need to understand the risks involved and have diversity across uh your option positions because I'm mainly an option seller that focuses on retirement income and helping my clients who engineers, doctors, lawyers, dentists, these busy professionals who want another income source or even make it their primary income source, which is, you know, make option trading $10,000 plus per month, then they they need to diversify.
It's very important uh to focus and and learn that. So, I hope that you already understand that or that you're watching more of my videos, but Nvidia will make millionaires. If you if you want to solidify your fundamentals, I have a playlist with free courses. There's some time I put in many months into making each video and they are pretty long, but the ROI for you is better than any other content on the internet, hands down.
Period. So, I'm going to leave you my playlist right here. You should check it out and go through some of the courses. The psychological course, the option trading for beginners course, uh the wheel strategy course. The information there will absolutely take you to the next level. So, I'm going to leave that on the screen right now and I'll catch you guys in the next video.
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