So one affair they were willing to forgive, but TWO???
I’m pretty sure Mrs. Huang will not be forgiving Jensen and that would be the most expensive divorce in history and that’s not just late-night comedy fodder but a MASSIVE transfer of wealth to a possible motivated seller of NVDA stock!
It’s not a done deal, the board is meeting today to decide on Jensen’s fate but I’ll bet Tim Cook’s phone was ringing last night…
That’s the right move for NVDA (free consulting advice), bring in a new CEO that the market will be EXCITED about – and not Chinese spy fake exciting (“Oh Jensen!“) but a really exciting choice like “Oh Tim!” or “Oh Rene” (Haas) or, if they want to swing the other way – it could be “Oh Lisa” (Su, who runs AMD but has the baggage of being Huang’s cousin – could be awkward at Thanksgiving)…
Clearly Tim Cook is the way to go and he’s “only” worth $3.1Bn, a gig at NVDA can triple that in no time. NVDA has 24 BILLION shares outstanding at $160 so a comp package that has Cook earning into 50M (0.2%) shares that pop to $200 per share is $10 BILLION!!! Heck, I’ll take the job if Tim doesn’t want it!
Tim has been chilling since turning over the reins of AAPL in September but he’s still the Executive Chairman over there but they sure aren’t paying him $10Bn for doing that and he’s “only” 66 (that’s the kind of thing 63 year-old guys say) and saving NVDA from this scandal is a perfect resume-topper for Cook and also a National service at this point because America can’t afford for the wheels to come off NVDA’s bus!
And the rats are already scrambling off this sinking ship:
And that’s only 5 of 19 analysts who need to change their BUYBUYBUY ratings before the shareholder lawsuits begin (allegedly high-level NVDA knew about and covered up the affairs which, OBVIOUSLY, “could have been” seriously damaging to the stock’s value). And even the President is in trouble as he also “allegedly” knew about the affair, KNEW Alice Huang was probably a Chinese spy and didn’t say anything because she was hot and, of course, the “Bro Code” that Trump believes overrides the US Constitution.
We already played for this on Monday, when we placed the following bet in the Live Member Chat room:
“Here’s a fun calendar spread for the STP:
Let’s buy 10 NVDA 2028 $220 calls for $22 ($22,000) and let’s sell 10 Jan $185 calls for $12.30 ($12,300) and 5 Jan $160 puts for $7 ($3,500) for net $6,200. The Delta on the Jan $185s is 0.48 and the 2028 $220s is 0.45 so it’s almost impossible to burn us to the upside (and we can always buy more longs and roll).
If this works out, we’re at net $6,200 with the ability to collect $12,000 every couple of months!”
As of last night, at $173, the $220 calls were still $20 ($20,000) and the $185 calls were $6 ($6,000) and the $160 puts were $13 ($6,500) so net $7,500 is already up 21% for the week but now the puts will be higher this morning – so we’ll see how it goes but this is perfect for us as we can buy back the short calls and wait for a bounce to sell more!
Oops, Trump just changed the topic for us with a “Truth“:
That sent Oil prices up and the markets down:
Adding to the chaos:
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Burning supertankers: Iran’s Revolutionary Guard said two supertankers with more than 4 million barrels aboard were “ablaze” after an “accident” on a route it forbids through Hormuz. Ambrey separately confirmed that a ship off Ras al-Khaimah was hit by a projectile (same source). Iran has hit at least 10 vessels in the first 10 days of November, after 37 attacks in October.
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Israel getting ready: Israel reportedly ordered its military to raise readiness for possible strikes on Iran. Tehran warned it would take the war “from West Asia to Europe” if attacked. Iran’s armed forces also said any US attack would be answered “10 times” more severely.
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No deal on uranium: Rezaei said not “a single particle” of enriched material will leave Iran, which removes Washington’s main condition for talks.
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Russian refineries: Ukraine hit Omsk, Russia’s largest refinery, for the third time, plus the Ust-Luga export port. Estimates put about 30% of Russian refining capacity out of action. That mostly squeezes diesel.
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So that should keep things interesting. Trump also threatened to double tariffs on Mexico from his throne this morning, reminding us he’s still in charge for another 7 weeks (but who’s counting?). Meanwhile China says “the US should not use the Huang scandal to justify Tech curbs” and I guess they mean the scandal in which the CHINESE SPY was caught “honeypotting” the CEO of our largest Tech company? Why would that justify curbs? How silly…
In fact, BABA is down 5% this morning on fears of those curbs as are Z.AI and MiniMax (other Chinese AI companies).
We’re still watching and waiting ahead of next week’s Member Portfolio Reviews (Tuesday) but the news will keep coming and the earnings reports keep coming and, in our Live Member Chat Room – we’ll catch up on everything and see where NVDA goes today – as there are lots of short-term trading opportunities there.
Also the Dollar is testing 103 – if it pops over that, we’re back in panic mode. Also watch the VIX – back at 18.80 this morning – panic is in the air!
Oh, one last candidate for NVDA CEO – Remember when this guy ran the country?:
