NVDA is a computer game company that has quite an established presence within the stock market. A blogger named Gavin decided to conduct a case study about this software company in order to see how hedge strategies pan out. He used strategies that involved tactics such as the collar method in which you create a floor, and then sell a call. Choosing a more simple route where you buy a put on an already established floor is called the simple put method.
- Although the writer is a dividend investor at heart and by passion, he knows that it is wise to have a few lotto tickets in the portfolio.
- NVDA’s power lies in the fact that it manufactures microchips used for cryptocurrency mining, robotics and driverless cars.
- The stock price of NVDA rose astronomically from $20 in 2015 to close to $300 in 2018, and with this increase in stock price, revenue and sales followed.
“NVDA pays a dividend but it’s a nominal one. I made a bet on NVDA, betting on the growth of the company itself and its earnings potential in the future. NVDA makes and manufactures microchips used in things that require a large amount of computing power.”