Sold Oct $90 Puts on Nvidia for a premium of $12. Stock was trading at $94 and change.

If put, will own the stock for around 20 times 2025 earnings. If earnings and growth expectations are met over the next few years, this would prove to be a great buy. 3-5 years EPS growth is expected to be 35%, so earnings could double in 2 years and PE would be 10 times 2027 earnings.

I however expect to be “disappointed” and just be satisfied collecting the premium. Something has to give soon on the tariffs. Republicans like Senators Cruz are already fearing a midterm bloodbath and calling for an end to the turmoil.

During this bear market I will only be buying high growers selling at reasonable prices, rather than slow growers selling for single digit PEs. I did that in 2009 and 2020 and regret it.

Berkshire Hathaway FAQ

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