Key insights
- An investor is considering rotating from NVDA LEAPS to META LEAPS, citing valuation and risk/reward as rationale. They aim to time the entry into META around 20x earnings (540-560 range) and are currently selling puts to generate income while waiting. This reflects a potential shift in sentiment from growth (NVDA) to value (META) within the tech sector, but the individual nature of the trade limits broad market impact.
I am holding an NVDA June 2027 LEAPS that is up around 60% at the moment.
I am thinking about selling and exchanging that for a META 2028 LEAPS as I can have longer expiration and better risk rewards as META has smaller market cap and is pricing in a good amount of negative sentiment.
Question is, how should I time this? I think NVDA has some more time for its uptrend and META has more pain before turning. My target entry for META is around 20x earnings which is the 540-560 range.
I’m not in a big hurry as I sold 40dte puts on META at my target price and collect theta in the interim. But just want to hear what yall would do to improve execution.