Davis is on a mission to turn $100,000 into $1 million. Follow along with his journey and get the opportunity to follow along in your own portfolio for free by clicking here.

While I can’t respond directly to most emails (due to personalized financial advice regulations), I can respond via this Saturday Q&A email.

Look for your question below!

I just wanted to make sure I have all the trades you have already made and I am not missing anything. I am tracking you at NVDA 165C Jan 17th contracts. I recall you used 5% of your starting capital on the option described above, roughly $5,000. Let me know if I have anything wrong or need to alter my own trades. – Paul

Thanks for the email, Paul. You’ve got this correct. This is my only position. This was the “insurance” option I bought in case NVDA spiked after its earnings report. This did not happen. However, I’ve got over a month until expiration so I’m comfortable holding for now.

Quick question regarding the MicroStrategy valuation analysis. It makes sense to me that the value of the company is currently ~$37B, yet the market is valuing it at $88B. My question is whether the market is valuing it so high is due to a) the cost basis of MSTR’s bitcoin holdings and b) the future value of those BTC holdings? – Press

Thanks, Press for the email! The value of Bitcoin today should reflect the market’s best guess as to the future value of Bitcoin. MicroStrategy’s stock price shouldn’t be where the future value of Bitcoin is reflected, being that MicroStrategy is just an owner of Bitcoin.

At the end of the day, a good valuation insight is to think about calculating the cost to re-create whatever it is you’re trying to value. The cost to re-create a portfolio of $38 billion worth of Bitcoin is $38 billion.

Wondering if now is the time to buy a put on Microstrategy? – Henry

The problem here is that stocks that are going up can continue to go up for a long time, regardless of fundamentals. So timing MicroStrategy’s demise using options can be difficult and costly.

My advice would be to stay away from MicroStrategy altogether. Don’t get sucked into the hype. There are plenty of safer, smarter money-making opportunities in the stock market. Meta Platforms, Nvidia, and Rocket Lab are a few I’ve talked about recently.

NVDA wavers within range since its 3Q report. Is it within your expectation and what could be the next in a short term? – Pei

Thanks for the email, Pei. I don’t know what the stock will do in the short-term. If anyone tells you otherwise – run. However, what I have been doing is paying close attention to the company and its prospects. The AI buildout is still full-steam ahead, which means so is Nvidia’s business.

On any pullback (that isn’t due to meaningful, company-specific news) I’ll be a buyer.

What percentage drop do you consider a “meaningful pullback?” – Bruce

Thanks, Bruce and Pei for teeing these questions up perfectly. A “meaningful pullback” looks something like what we saw in July-September of this year. High-quality stocks traded lower for reasons irrelevant to their respective businesses.

I love buying stocks/options on setups like this. At the time, I knew the unwinding Japanese Yen carry trade was a short-term overreaction that wouldn’t impact the business prospects of Nvidia or Meta. I bought call options that eventually returned 2-3x my investment.

Can I follow along with The Million Mission without buying options? – Susie

Yes! I focus on high-quality companies here at The Million Mission. I’m personally waiting for an opportune time to trade options, but I’d recommend buying any one of these stocks as a long-term investment as well. Do what you’re comfortable with!

Special Shoutouts

I received plenty of other emails and words of encouragement in my inbox as well.

Thank you to Sayed, Nathan, Paul, Stewart, Kenny, Dave, Tim, Dan, and Ron!

I’m thankful that you’re along for the Mission. Keep the emails coming.