Daily Options Income Strategy | Cloud Computing Sector Leads the Rebound! NBIS Surges 27% in a Single Day—How to Capture High Volatility in the AI Compute Infrastructure Space?

I. Market Barometer

U.S. equities rallied sharply across the board in the previous trading session, with the AI cloud infrastructure sector emerging as the strongest rebounding segment. $NEBIUS (NBIS.US)$ Boosted by sector sentiment, the stock surged 27.13% in a single day to $188.43, and extended gains by nearly 5% in after-hours trading, approaching the psychological $200 mark. $Microsoft (MSFT.US)$ Azure cloud business growth exceeded expectations, providing macro-level validation for long-term demand in the AI compute leasing segment. High implied volatility has created an exceptionally attractive window for options selling strategies.

II. Watchlist Highlights

NBIS: Microsoft's earnings report triggered a reassessment of AI compute demand, driving a 27% single-day surge.

$NEBIUS (NBIS.US)$ The stock gapped up at the open yesterday, closing up 27.13% at $188.43, with a turnover rate of approximately 19.19% and trading volume of about $7.879 billion. It continued rising nearly 5% in after-hours trading to around $199, nearing the psychological $200 threshold. As of this writing, it has already breached the $200 mark in pre-market trading.

NBIS is currently in a violent rebound phase following a significant oversold condition.The stock faced persistent pressure in July, dropping more than 30% at one point during the month. It has now recovered above the 120-day moving average (around $168) and is testing the key $200 psychological level as well as the downtrend line from the June high of $299.86. The RSI has rebounded sharply from deeply oversold territory but has not yet entered overbought levels, suggesting potential for further near-term upside.

From a news perspective, $Microsoft (MSFT.US)$The earnings report provides the strongest macro endorsement yet for the AI cloud segment, with Microsoft Azure revenue accelerating to 43%, validating the narrative of AI compute supply constraints.Microsoft’s Q4 earnings showed Azure and other cloud services revenue grew 43% year-over-year (on a constant currency basis), surpassing both last quarter’s 40% growth and analyst expectations. The CEO revealed that Azure’s annual revenue has surpassed $100 billion for the first time, making it the second cloud provider after AWS to reach this milestone, with demand continuing to outstrip available capacity.

Microsoft’s earnings indicate that AI compute supply bottlenecks are becoming a core constraint for cloud giants, which directly benefits $NEBIUS (NBIS.US)$ 、 $CoreWeave (CRWV.US)$ professional AI cloud service providers, which are filling the gap left by hyperscale cloud vendors' insufficient computing capacity.

Key variables to monitor going forward include:Whether the deleveraging pressure on tech stocks has been fully released (previously, AI-leveraged ETFs in Asian markets such as South Korea significantly shrank, and prominent AI funds were forced to liquidate positions), changes in the competitive landscape of AI cloud platforms, and whether NBIS can sustain its high-growth momentum into Q2.The company will release its Q2 earnings before market open on August 12. The options market is pricing in this event, with implied volatility at historically elevated levels.

Eight analysts have a consensus 'Buy' rating, with an average price target of approximately $270. Robert W. Baird initiated coverage on July 21 with a 'Buy' rating and a $250 price target; Bank of America Securities reaffirmed its $280 price target on July 20; Goldman Sachs raised its price target from $267 to $286 at the end of June.

3. Options Premium Collection Strategy

1. Cash Secured Put

Sell 1 contract of $NEBIUS (NBIS.US)$260821 160P, estimated margin requirement (for reference only): $16,000

Opportunity Rationale:

For investors who agree with the long-term thesis of AI computing capacity leasing but have not yet established positions, NBIS has surged 27% following Microsoft's earnings catalyst, approaching $200—increasing the risk of chasing prices in the short term.

However, the company’s fundamentals remain solid, supported by NVIDIA’s equity stake and over $1 billion in AI computing contracts, providing ongoing validation. By selling put options, investors can collect premium income in this high-implied-volatility environment if the stock consolidates near current levels or continues to rise; if the share price pulls back due to earnings-related volatility or sector sentiment swings, they may also gain the opportunity to establish positions at more attractive prices.

2. Covered Call

Holding 100 shares and selling 1 contract of $NEBIUS (NBIS.US)$ 260821 250C

Opportunity Rationale:

For investors already holding $NEBIUS (NBIS.US)$ investors are seeing the stock approach the $200 mark after a sharp rebound, but it remains down over 30% from its monthly high, facing resistance from prior overhead supply.

Microsoft's earnings report validated the industry demand thesis, but uncertainty remains around the company's Q2 results. Investors who are bullish on the long-term expansion prospects of AI cloud platforms yet concerned about profit-taking pressure following a rapid short-term rebound could consider selling call options. If the stock price consolidates near current levels, the premium income can gradually lower the cost basis of their position; if the subsequent Q2 earnings beat expectations and push the share price above approximately $250—triggering assignment—it would effectively amount to taking partial profits at a key resistance level.

IV. Risk Management Advisory

Although seller strategies have a high win rate, investors must still implement proper risk management:

– Position management is everything.: The biggest risk for option sellers lies in black swan events. It is recommended that margin allocated to any single underlying should not exceed 20% of total capital. Never sell options beyond your capacity to absorb losses just for the sake of collecting higher premiums.

– Covered Call and Timely Rolling: When a covered call becomes deeply in-the-money (i.e., the stock price far exceeds the strike price), if you remain bullish on the underlying stock, you should decisively 'roll' the position—buy to close the current option and simultaneously sell a longer-dated call with a higher strike price—to avoid having your shares called away at an unattractive price.

– Cash-secured put options: Beware of 'left-tail risk': For cash-secured puts, if the stock price crashes due to fundamental deterioration (rather than a normal pullback), don’t hold on stubbornly. In such cases, exit with a stop-loss or roll the position down to buy time while waiting for volatility to normalize.

Make good use of the Options Seller Hub to understand income strategies for selling options and earnOption premiums！

Options Risk Disclosure

An option is a contract that gives the holder the right—but not the obligation—to buy or sell an underlying asset at a predetermined price on or before a specified date. Option prices are influenced by multiple factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market's expectation of future volatility over the life of the option and is derived by back-solving from the Black-Scholes option pricing model. It is commonly viewed as an indicator of market sentiment. When investors anticipate higher volatility, they may be willing to pay more for options to hedge their risk, leading to 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 an offer, solicitation, recommendation, advice, opinion, or any guarantee regarding any securities, financial products, or instruments. The risk of loss in trading options can be substantial. In certain circumstances, your losses may exceed the initial margin deposit. Even if you place contingent orders, such as 'stop-loss' or 'limit' orders, there is no guarantee they will prevent losses. Market conditions may render such orders unexecutable. You may be required to deposit additional margin on short notice. If you fail to meet the required margin within the specified timeframe, your open positions may be liquidated. Nevertheless, you remain fully responsible for any resulting deficit in your account. Therefore, prior to trading options, you should thoroughly study and understand options and carefully consider whether such trading aligns with your financial situation and investment objectives. If you trade options, you should become familiar with the procedures for exercising options and handling expiration, as well as your rights and obligations upon exercise or expiration. Options trading involves substantial risk and is not suitable for all investors. Investors should carefully read 'Characteristics and Risks of Standardized Options' before engaging in any options trading strategy.

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