Options Sir Breaks Down the Hot Topic | After Strong Earnings, Is NBIS Receiving Institutional Endorsement for a Second Catalyst?

On May 27, $NEBIUS (NBIS.US)$ The stock surged more than 12% in after-hours trading at one point.

The immediate trigger for the share price jump was the disclosure by well-known hedge fund Situational Awareness LP after market close yesterdaythat it had significantly increased its stake by purchasing 12,410,060 Class A ordinary shares of NBIS, representing 5.6% of the outstanding shares.

This firm has drawn significant attention due to its founder, Leopold Aschenbrenner, who graduated top of his class from Columbia University at age 19, joined OpenAI in 2023, and was dismissed in April 2024 over security-related disagreements. He subsequently published a 165-page report titled 'Situational Awareness,' forecasting the arrival of AGI by 2027, with key bottlenecks being infrastructure such as power and computing capacity. Since then, the Situational Awareness LP fund has ballooned from an initial $225 million to $5.52 billion within a year, capturing widespread attention on Wall Street.

The AI bottleneck has shifted from 'GPU shortages' to 'shortages in power, data centers, and physical space,' driving bets on 'shovel-selling' companies in AI infrastructure.

Leopold’s latest disclosure has once again drawn market attention to NBIS. In their previously published report, they outlined several key viewpoints:

1. AGI is expected to emerge by 2027(Artificial General Intelligence, commonly defined as AI capable of independently performing any intellectual task a human can), which would include AI systems that learn to self-iterate—compressing a decade’s worth of algorithmic progress into just one year or even less.

2. No 'breakthrough' new algorithms are needed; AGI can be achieved through the linear continuation of current trends—advances in chip compute power, algorithmic efficiency, and AI firms lifting safety restrictions.

3. As AI advances rapidly, physical infrastructure—power and data centers—will become the next critical bottleneck.Demand for power and data is set to surge exponentially, with the estimated cost of a single top-tier training cluster reaching $100 billion by 2028. The cluster’s annual electricity consumption would be equivalent to the entire annual power usage of Ohio. Therefore, AI development will not be constrained by compute chips; instead, those who control sufficient power plants, grid infrastructure, and liquid-cooled data centers will directly benefit.

For NEUBIS, as a company primarily engaged in AI data center construction and cloud services,NBIS has secured long-term, cost-controlled power supply through long-term contracts for Nordic green electricity, on-site power generation in the U.S. (via fuel cells or natural gas), and direct grid procurement, giving it strong pricing power under the demand-driven power logic.

Fundamentals are solid, with profitability already validated by reported results.

In fact, NBIS experienced a significant rally less than two weeks ago—on May 13, its shares rose 15.72% following the pre-market release of earnings. In Q1 2026, NBIS reported total revenue of $399 million, up 683.89% year-over-year, while its operating loss narrowed to $128 million quarter-over-quarter, confirming its improving profitability and the initial emergence of economies of scale.

Currently, NBIS’s core business segments consist of AI computing capacity leasing and cloud platforms (89%), data center operations (9%), and AI data services and other businesses (2%).

High short interest led to forced short covering after the stock price jumped.

Another driver behind the stock’s surge was short covering. Fromthe desktop NBIS stock analysis page—Short Interest section,we can see that NBIS’s short interest significantly exceeds that of mainstream stocks, standing at a high 17.76%. Thus, after the earnings release and large-position disclosures triggered a sharp price jump, shorts were forced to cover their positions, further pushing the stock higher.

Options signal: Mixed sentiment—can the market strengthen its bullish expectations for NBIS?

Prior to the sharp after-hours rally, the options market showed mixed investor sentiment toward NBIS's share price, with a put/call ratio of 1.23. Although recent call activity has heavily concentrated on strike prices between 210 and 240, substantial put open interest at the 185 level also reflects market concerns about a near-term pullback.

1. If you are bullish on the stock’s long-term trend but worry about potential short-term losses from holding it outright,

then you canyou can simultaneously hold the underlying shares long-term and consistently sell one call option above the current price to implement a Covered Call strategy.As long as the stock price stays below the strike price, you keep the full premium. Even if the price rises above the strike and the call is exercised, your shares are sold, locking in profits—you simply forgo any additional upside beyond that point.

If you don’t currently hold the underlying shares but want to track its price movement at a lower cost, you canbuy a long-term equity anticipation security (LEAPS) call option.Compared to buying the stock outright, LEAPS calls require less capital while still offering exposure to upward price movements.

2. If you believe the stock will pull back in the short term and want to profit from the decline,

you couldbuy a put optionput options can deliver significant returns at a relatively low cost when the stock experiences a sharp drop.

If you're concerned about time decay on a single-leg option position, you can alsosell a put at a lower strike price while buying a put, forming a bear put spread.The premium received from selling the put can partially offset the time decay of the long put, resulting in a more moderate risk and reward profile compared to holding a single-leg option.

3. If you believe stock price volatility will persist and want to profit from it,

then you canyou can simultaneously buy a call and a put to create a long straddle or strangle strategy.The values of the call and put positions partially offset each other. If stock price volatility intensifies and implied volatility (IV) rises, the overall value of the position will increase accordingly, generating a profit.

However, note that NBIS options currently have elevated implied volatility. If you expect NBIS’s implied volatility not only to remain flat but to decline—thereby eroding option values—you could take the opposite side by selling both a call and a put, establishing a short straddle or strangle strategy.

Finally, Option Sir brings a small perk for fellow investors, welcome to claim it.Options Beginner Pack

*This event is exclusive to invited HK users. Click to learn more.Detailed event rules>>

Market conditions are complex and volatile,Options StrategyOverwhelmed by choices? Futubull helps you build a portfolio in three steps.Options Strategymaking investing simple and efficient!

Option Risk Warning:An option is a contract that grants the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or at any time before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market’s expectations for the level of volatility in the option over a future period. It is a data point derived inversely from the Black-Scholes option pricing model and is generally regarded as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay a higher price for options to hedge risks, resulting in higher implied volatility. Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer:This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee of any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses may exceed the initial margin deposited. Even if you set contingent orders such as 'stop-loss' or 'limit' orders, these may not prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account. Therefore, before trading, you should study and understand options and carefully consider whether such trading is suitable for you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon exercise and expiration. Options trading carries extremely high risks and is not suitable for all investors. Investors should carefully readCharacteristics and Risks of Standardized Options。

292K Views