--- title: "The era of NVIDIA's 4 trillion, from fractional shares to options: How to benefit from AI from four perspectives!" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/31661854.md" description: "Amazing, $NVIDIA(NVDA.US) has made history by becoming the first company in the world to reach a market cap of $4 trillion! What does this mean? It's equivalent to the market cap of 4 $Tesla(TSLA.US) or 17 $Alibaba(BABA.US); it even surpasses the total market cap of any single country like the UK, France, or Germany; its 'economic scale' is comparable to 70% of Japan's annual GDP, the world's third-largest economy. This isn't just a number—it's a milestone in the AI era. As the indispensable 'shovel seller' in the field of artificial intelligence..." datetime: "2025-07-10T10:11:21.000Z" locales: - [en](https://longbridge.com/en/topics/31661854.md) - [zh-CN](https://longbridge.com/zh-CN/topics/31661854.md) - [zh-HK](https://longbridge.com/zh-HK/topics/31661854.md) author: "[期权君](https://longbridge.com/en/profiles/8874340.md)" --- # The era of NVIDIA's 4 trillion, from fractional shares to options: How to benefit from AI from four perspectives! Wow, $NVIDIA(NVDA.US) has made history by becoming the first company in the world to reach a market cap of $4 trillion! What does this mean? It's equivalent to the market cap of 4 $Tesla(TSLA.US) or 17 $Alibaba(BABA.US); it even surpasses the total market cap of any single country like the UK, France, or Germany. Its "economic scale" is comparable to 70% of Japan's annual GDP, the world's third-largest economy. This isn't just a number—it's a milestone in the AI era. As the indispensable "shovel seller" in the AI field, NVIDIA's dominance in computing power is the core driver behind its soaring market cap. Just like the 19th-century gold rush, where many sought gold but the real steady profits went to those selling shovels. Did you participate in NVIDIA's journey to new highs? Today, OptionMaster will discuss how ordinary investors can get a piece of the pie from four angles: fractional shares, ETF strategies, concept stock opportunities, and options strategies! ## 1\. Fractional Shares: Low-Barrier Entry—Become an NVIDIA Shareholder for Just $1! Let's address a practical issue first: NVIDIA's stock price isn't cheap. This is common for hot stocks in the U.S. market, especially for star companies. Currently, one share of NVIDIA costs $163. To buy 100 shares, you'd need $16,300 (approx. HK$127,900). For many budget-conscious investors, this is a high barrier. But don't worry! Fractional shares let you easily enter the game and become an NVIDIA shareholder at a low cost! What are fractional shares? Simply put, they allow you to buy less than one full share, such as 0.1, 0.5, or even 0.01 shares. You can start with as little as $1. This is very friendly for investors with limited funds who want to invest in high-priced stocks. **Example:** Suppose you invest $100 (approx. HK$785) monthly in NVIDIA. At the current price of $163/share, you can buy about 0.61 shares. Over time, even with limited funds, you can gradually build a significant NVIDIA position. Three advantages of fractional shares: Low barrier: Start with $1—no need to save up for a full share. Easily become an NVIDIA shareholder. Flexible allocation: Use limited funds to invest in multiple high-priced stocks like NVIDIA, Tesla, and Google. Ideal for dollar-cost averaging: Invest a fixed amount monthly to average costs and enjoy long-term compound growth. ## 2\. ETF Strategies: A Smart Way to Diversify Risk If you think direct investment in $NVIDIA(NVDA.US) is too risky or you're worried about volatility, consider indirect exposure through ETFs. This approach not only diversifies your investment and reduces single-stock risk but also lets you benefit from the growth of the entire industry. There are also inverse ETFs available. **Relevant ETFs:** $Direxion Semicon Bull 3X(SOXL.US), $GraniteShares 2x Long NVDA Daily ETF(NVDL.US), $Direxion Semicon Bear 3X(SOXS.US), $GraniteShares 2x Short NVDA Daily ETF(NVD.US) **How to find popular ETFs:** ## 3\. Concept Stock Opportunities: Potential Plays in the AI Ecosystem Beyond direct investment in $NVIDIA(NVDA.US), concept stocks in the AI ecosystem are also worth considering. After all, the AI revolution isn't just NVIDIA's story—it's driving growth across the entire supply chain. **How to find concept stocks:** ## 4\. Options Strategies: Hedge Risk and Lock in Gains Finally, let's talk about options strategies. Many ask: With a $4 trillion market cap, can NVIDIA still rise? Or will it fall? Honestly, for high-valuation sectors like NVIDIA, volatility risk can't be ignored. As NVIDIA's own history shows, it lost 20% of its value in early 2025 due to DeepSeek's impact and hit a yearly low in April after Trump's chip ban. This reminds us that investing in tech revolutions is never a straight line—there will always be ups and downs. So, if you're worried about volatility but don't want to miss out on NVIDIA, options strategies can help! Simply put, options are like "stock insurance" or "stock lottery." Used well, they can hedge risk and amplify returns. Ignoring implied volatility (IV) in options strategies is reckless. OptionMaster highlights NVIDIA's current IV for reference. Right now, $NVIDIA(NVDA.US) has an IV of 35.56%, with an IV Percentile of just 6%. This means that over the past year, NVIDIA's IV was below 35.56% only 6% of the time—i.e., 94% of trading days had higher IVs. This also suggests market sentiment is relatively calm, making options somewhat cheap. As we've said before, implied volatility (IV) is a core factor in options pricing, reflecting market expectations for future volatility. Generally, higher IV means more expensive options; lower IV means cheaper options. IV also tends to revert to its mean—when too high, it falls; when too low, it rises. For investors, IV levels directly impact strategy choices. Low IV: Cheaper options favor buyer strategies, especially for directional bets. High IV: Expensive options favor seller strategies, like selling options to earn time value. With NVIDIA's current low IV, "buyer strategies" are cost-effective, ideal for directional plays or betting on volatility rebounds. **1) Buyer Strategy in Low IV: Buy Puts to Hedge Downside Risk** If you hold NVIDIA stock but fear a pullback, buying puts (Long Put) is a solid hedge. **The logic is simple:** In a low-IV environment, use low-cost puts to insure your stock position. For example, buy out-of-the-money (OTM) puts to cheaply protect your holdings. If the stock falls, the put's gains offset losses. **Example:** Suppose you hold 100 NVIDIA shares at $163. If you're worried about a drop to $150, buy a $150-strike put. If the stock falls quickly, the OTM put's price may surge due to positive gamma and IV rebound. Say you pay $40 (i.e., $0.40 per option, with 1 contract = 100 shares) for a $150-strike put. Using Longbridge's options calculator: If the stock hits $150, the put could rise to $2.68. Your gain would be $268 ($40 cost → $228 net profit), effectively offsetting stock losses. Notably, rapid drops often coincide with IV spikes, further boosting put prices. (This simulation excludes IV variables.) _Note: This example is for educational purposes only. The strategies and data are hypothetical and not investment advice. Always assess risks based on your situation._ **Pros and Risks:** The upside is controlled risk. Your max loss is the premium paid ($40), with no further downside. It's cheap peace of mind. But cost control is key. While put premiums are low, only spend what you can afford. Insurance is for risk management, not risk-taking. **2) Seller Strategy in Low IV? Try Covered Calls** If you own $NVIDIA(NVDA.US) but expect sideways movement, consider covered calls. **Logic:** If the stock won't rally soon, "rent out" your shares by selling calls to earn premiums and boost returns. Though low IV means smaller premiums, it still adds income. **Example:** Hold 100 NVIDIA shares at $163. If you think it won't hit $200 soon, sell a $200-strike call. If the stock stays below $200, you keep the premium. **Pros:** Extra income: Earn premiums even if the stock doesn't rise—like "renting" your shares. Lower risk: Since you own the stock, selling calls is relatively safe. **Risks:** If wrong (e.g., stock surges), your shares get called away at $200, missing further gains. Strategy success depends on accurate price forecasts. That's all for today! Whether via fractional shares, ETFs, concept stocks, or options, there's a strategy for every investor. Share your thoughts in the comments—let's discuss! ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [BABA.US](https://longbridge.com/en/quote/BABA.US.md) - [09988.HK](https://longbridge.com/en/quote/09988.HK.md) - [HBBD.SG](https://longbridge.com/en/quote/HBBD.SG.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [SOXS.US](https://longbridge.com/en/quote/SOXS.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [89988.HK](https://longbridge.com/en/quote/89988.HK.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) ## Comments (11) - **LauR1 · 2025-07-10T20:45:41.000Z**: Deepfake is about to disrupt NVIDIA😁 - **非富即桂 · 2025-07-10T12:02:27.000Z**: Missed it ^_^ - **牛牛牛2025 · 2025-07-10T11:35:23.000Z · 👍 2**: How many people were bearish when it fell to 86 in April? - **浙江忧郁二代** (2025-07-10T12:02:22.000Z): I'm buying like crazy - **牛牛牛2025** (2025-07-10T12:48:33.000Z): Then you've made it big. - **Wandametro · 2025-07-10T10:38:31.000Z**: 一直没注意 原来是从全景里面去找板块和概念股 谢谢告知 - **空空郎君 · 2025-07-10T10:32:33.000Z · 👍 2**: When will Longbridge launch [fractional options trading]?Some stock prices are too high, and spare change isn't enough for the margin required to sell a put option.Longbridge could introduce an options version of 'group buying,' called [Group Options] or [Options Galore]. This would allow people to - **呆克兰** (2025-07-10T10:36:43.000Z): 厉害了，真有想法，说不定长桥真可以考虑 - **方向、** (2025-07-10T11:13:56.000Z): Just go for 100x leverage, play with $1 every day. Treat it like a lottery 😀 - **長野原烟花店交易员** (2025-07-10T11:52:04.000Z): Transaction fee is $2, how about it?