Soros Fund Management and Appaloosa Management increased their stakes in Nvidia during the second quarter. Soros Fund bought 932,539 shares, which raised its total by over 1,600% to 990,292 shares. Appaloosa Management added 1.45 million shares, a 483% increase, bringing its total to 1.75 million shares. Both funds also boosted their investments in UnitedHealth Group, a health insurer that has faced challenges. UnitedHealth saw an 8.2% rise in after-hours trading. Nvidia’s shares dipped 0.2% in after-hours trading on Thursday but are up 35.5% for the year. In contrast, UnitedHealth’s shares are down 46.3% year-to-date, even though they have recently gained back some ground. Looking at the Q2 2024 filings shows how major funds prepared for the AI boom by heavily investing in Nvidia. Their strong belief from last year continues to hold relevance today. The key is to update that long-term outlook based on current market conditions. As of today, August 14, 2025, Nvidia has gone up an additional 52% this year, even as volatility has increased recently. This morning’s U.S. Producer Price Index (PPI) data indicated a slight rise in inflation, causing uncertainty about the Federal Reserve’s next steps. For traders holding Nvidia, this may be a good time to sell covered calls to earn income from the higher premiums while keeping the core investment. Historically, tech leaders like Nvidia often see sharp, short-term pullbacks, even in a strong uptrend. An example is the 15% correction in spring 2024. Given the current economic uncertainty, buying protective puts with a one-month expiry could be an economical way to guard against a similar decline. This strategy lets us stay involved with the AI trend that Soros and Appaloosa recognized early on. The funds’ 2024 investment in the struggling UnitedHealth also offers a valuable lesson. The stock has bounced back over 30% from its lows as last year’s regulatory fears subsided, and medical cost trends stabilized, as confirmed in their Q2 2025 earnings call last month. This suggests that the recovery phase may be nearing its peak. With UnitedHealth now trading in a more stable range, it makes sense to use collar strategies. This involves buying a protective put and selling a covered call at the same time. This approach protects our downside while limiting potential gains. It allows us to secure the significant profits made since last year while keeping hedging costs low.

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