Option Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts

Barchart06-18

Nvidia Inc stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Big daddy
06-18
Big daddy
I wil have to agree with this!
Val準凖
06-18
Val準凖
Sell sell sell

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2444194945?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-06-18 19:45","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2444194945","market":"us","top_or_hot":-1,"title":"Option Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts","media":"Barchart","content":"<div>\n<p>Nvidia Inc  stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth ...</p>\n\n<a href=\"https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more\">Source Link</a>\n\n</div>\n","source":"barchart_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Option Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOption Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-18 19:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia Inc  stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth ...</p>\n\n<a href=\"https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0289961442.SGD","symbol_name":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","start_time":0,"source_url":"https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more","article_id":"2444194945","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2444194945","pubTimestamp":1718711147,"sourceInfo":{"source_id":"barchart_highlight","name":"Barchart"},"weMediaInfo":null,"summary":"$Nvidia Inc (NVDA)$ stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could b","collect":0,"end_time":0,"defaultTopTitle":"barchart.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","NVDA":"英伟达","BK4503":"景林资产持仓","BK4551":"寇图资本持仓","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4581":"高盛持仓","BK4099":"汽车制造商","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4579":"人工智能","LU0234570918.USD":"高盛全球核心股票组合Acc Close","IE0034235295.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"A\" (USD) ACC","LU0238689110.USD":"贝莱德环球动力股票基金","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","BK4529":"IDC概念","LU0072462426.USD":"贝莱德全球配置 A2","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","LU0079474960.USD":"联博美国增长基金A","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0056508442.USD":"贝莱德世界科技基金A2","BK4592":"伊斯兰概念","LU0080751232.USD":"富达环球多元动力基金A","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","BK4588":"碎股","BK4523":"印度概念","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0109392836.USD":"富兰克林科技股A","BK4550":"红杉资本持仓","BK4211":"区域性银行","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4587":"ChatGPT概念","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","BK4141":"半导体产品","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4527":"明星科技股","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC"},"translate_title":"期权女巫Nvidia股票可能价值每股200美元，做空OTM看跌期权","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NVDA":1},"content_text":"Nvidia Inc  stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth $200 per share or 53% more. One way to play this is to short out-of-the-money puts.This valuation assumes that Nvidia will make at least 53.5% FCF margins over the next year and that analysts' revenue forecasts come true. This article will explain how this works out.NVDA stock is trading for $131.9 per share in premarket trading on Tuesday, June 18. This is after the company recently split its shares effective last week on a 10-for-1 forward basis.Strong Free Cash Flow MarginsSeeking Alpha now shows that estimates for revenue for 2025 (i.e., the year ending Jan. 2026) is now $157.38 billion. That is revised up from $154.82 billion shown in my prior articles.Moreover, last quarter the company made $14.9b in FCF on $26 billion in revenue. That means its FCF margin was an astounding 57.35% as I showed in the May 24 article. This is up from its prior quarter's 50.75% FCF margin and the trailing 12-month (TTM) FCF margin of 49.3%.So, if Nvidia makes at least 53.5% FCF margins over the next 12 months (NTM) we can derive its NTM FCF. This assumes revenue averages at least $138.69 billion (i.e., the average of Jan. 2025 estimates of $120 billion and Jan. 2026 revenue estimates of $157.38). As a result, multiplying 0.535 by $138.69b results in an NTM FCF estimate of $74.2 billion.That is 88.8% over the TTM FCF of $39.3 billion. In other words, FCF is set to explode.Target Price or NVDA Stock Based on Its FCF EstimateThis means that Nvidia could be worth significantly more using an FCF yield metric. For example, the market would likely give the stock a 1.5% dividend yield if it were to pay out 100% of that FCF.Therefore, if we divide the NTM FCF estimate of $74.2 billion by 1.5% we get a market cap estimate of almost $5 trillion. For example, $74.2b/0.015 = 4,947 billion, or $4.95 trillion.That is 53.1% over the market cap of Nvidia on Friday of $3.231 trillion. In other words, NVDA stock is worth 53% more, or about $200 per share.Analysts are raising their valuation estimates. For example, AnaChart.com, a new sell-side analyst tracking service, shows that the average of 39 analysts is now $234.45 per share.One way to play this is to sell short out-of-the-money (OTM) put options.Shorting OTM PutsFor example, look at the July 12 expiration period, 25 days from now. It shows that the $127 strike price puts, trade for $4.15 on the bid side. That represents an unusually high annual return of 47.71% for the selling side.$NVDA 20240712 127.0 PUT$ NVDA puts expiring July 12 - As of June 18This also means that the short seller has good downside protection. For example, even if the stock falls to $127 on or before July 12, the investor's breakeven point is $127-$4.35, or $122.65 per share.The bottom line is that NVDA is worth considerably more from here. One way for existing shareholders to play this profitably is to short OTM puts in nearby expiry periods.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":318233290281096,"gmtCreate":1718721238605,"gmtModify":1718725194993,"author":{"id":"4175334138138002","authorId":"4175334138138002","authorIdStr":"4175334138138002","name":"Big daddy","avatar":"https://community-static.tradeup.com/news/5cb5d30b4ac810549611cf8269dae35a","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"4175334138138002"},"htmlText":"I wil have to agree with this!","listText":"I wil have to agree with this!","text":"I wil have to agree with this!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/318233290281096","repostId":2444194945,"repostType":2,"repost":{"id":"2444194945","pubTimestamp":1718711147,"share":"https://ttm.financial/m/news/2444194945?lang=&edition=fundamental","pubTime":"2024-06-18 19:45","market":"us","language":"en","title":"Option Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts","url":"https://stock-news.laohu8.com/highlight/detail?id=2444194945","media":"Barchart","summary":"$Nvidia Inc (NVDA)$ stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could b","content":"<html><head></head><body><p><a href=\"https://laohu8.com/S/NVDA\">Nvidia Inc </a> stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth $200 per share or 53% more. One way to play this is to short out-of-the-money puts.</p><p>This valuation assumes that Nvidia will make at least 53.5% FCF margins over the next year and that analysts&#39; revenue forecasts come true. This article will explain how this works out.</p><p>NVDA stock is trading for $131.9 per share in premarket trading on Tuesday, June 18. This is after the company recently split its shares effective last week on a 10-for-1 forward basis.</p><h3 id=\"id_42864721\">Strong Free Cash Flow Margins</h3><p>Seeking Alpha now shows that estimates for revenue for 2025 (i.e., the year ending Jan. 2026) is now $157.38 billion. That is revised up from $154.82 billion shown in my prior articles.</p><p>Moreover, last quarter the company made $14.9b in FCF on $26 billion in revenue. That means its FCF margin was an astounding 57.35% as I showed in the May 24 article. This is up from its prior quarter&#39;s 50.75% FCF margin and the trailing 12-month (TTM) FCF margin of 49.3%.</p><p>So, if Nvidia makes at least 53.5% FCF margins over the next 12 months (NTM) we can derive its NTM FCF. This assumes revenue averages at least $138.69 billion (i.e., the average of Jan. 2025 estimates of $120 billion and Jan. 2026 revenue estimates of $157.38). As a result, multiplying 0.535 by $138.69b results in an NTM FCF estimate of $74.2 billion.</p><p>That is 88.8% over the TTM FCF of $39.3 billion. In other words, FCF is set to explode.</p><h3 id=\"id_3537174762\">Target Price or NVDA Stock Based on Its FCF Estimate</h3><p>This means that Nvidia could be worth significantly more using an FCF yield metric. For example, the market would likely give the stock a 1.5% dividend yield if it were to pay out 100% of that FCF.</p><p>Therefore, if we divide the NTM FCF estimate of $74.2 billion by 1.5% we get a market cap estimate of almost $5 trillion. For example, $74.2b/0.015 = 4,947 billion, or $4.95 trillion.</p><p>That is 53.1% over the market cap of Nvidia on Friday of $3.231 trillion. In other words, NVDA stock is worth 53% more, or about <strong>$200 per share</strong>.</p><p>Analysts are raising their valuation estimates. For example, AnaChart.com, a new sell-side analyst tracking service, shows that the average of 39 analysts is now $234.45 per share.</p><p>One way to play this is to sell short out-of-the-money (OTM) put options.</p><h3 id=\"id_2553537680\">Shorting OTM Puts</h3><p>For example, look at the July 12 expiration period, 25 days from now. It shows that the $127 strike price puts, trade for $4.15 on the bid side. That represents an unusually high annual return of 47.71% for the selling side.</p><p><a href=\"https://ttm.financial/OPT/NVDA%2020240712%20127.0%20PUT\" title=\"$NVDA 20240712 127.0 PUT$\" target=\"_blank\">$NVDA 20240712 127.0 PUT$</a></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/d8077208e1ccec09ab849e548bf967e7\" alt=\" NVDA puts expiring July 12 - As of June 18\" title=\" NVDA puts expiring July 12 - As of June 18\" tg-width=\"1170\" tg-height=\"1023\"/><span> NVDA puts expiring July 12 - As of June 18</span></p><p>This also means that the short seller has good downside protection. For example, even if the stock falls to $127 on or before July 12, the investor&#39;s breakeven point is $127-$4.35, or $122.65 per share.</p><p>The bottom line is that NVDA is worth considerably more from here. One way for existing shareholders to play this profitably is to short OTM puts in nearby expiry periods.</p></body></html>","source":"barchart_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Option Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOption Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-18 19:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia Inc  stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth ...</p>\n\n<a href=\"https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","NVDA":"英伟达","BK4503":"景林资产持仓","BK4551":"寇图资本持仓","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4581":"高盛持仓","BK4099":"汽车制造商","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4579":"人工智能","LU0234570918.USD":"高盛全球核心股票组合Acc Close","IE0034235295.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"A\" (USD) ACC","LU0238689110.USD":"贝莱德环球动力股票基金","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","BK4529":"IDC概念","LU0072462426.USD":"贝莱德全球配置 A2","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","LU0079474960.USD":"联博美国增长基金A","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0056508442.USD":"贝莱德世界科技基金A2","BK4592":"伊斯兰概念","LU0080751232.USD":"富达环球多元动力基金A","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","BK4588":"碎股","BK4523":"印度概念","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0109392836.USD":"富兰克林科技股A","BK4550":"红杉资本持仓","BK4211":"区域性银行","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4587":"ChatGPT概念","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","BK4141":"半导体产品","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4527":"明星科技股","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC"},"source_url":"https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2444194945","content_text":"Nvidia Inc  stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth $200 per share or 53% more. One way to play this is to short out-of-the-money puts.This valuation assumes that Nvidia will make at least 53.5% FCF margins over the next year and that analysts' revenue forecasts come true. This article will explain how this works out.NVDA stock is trading for $131.9 per share in premarket trading on Tuesday, June 18. This is after the company recently split its shares effective last week on a 10-for-1 forward basis.Strong Free Cash Flow MarginsSeeking Alpha now shows that estimates for revenue for 2025 (i.e., the year ending Jan. 2026) is now $157.38 billion. That is revised up from $154.82 billion shown in my prior articles.Moreover, last quarter the company made $14.9b in FCF on $26 billion in revenue. That means its FCF margin was an astounding 57.35% as I showed in the May 24 article. This is up from its prior quarter's 50.75% FCF margin and the trailing 12-month (TTM) FCF margin of 49.3%.So, if Nvidia makes at least 53.5% FCF margins over the next 12 months (NTM) we can derive its NTM FCF. This assumes revenue averages at least $138.69 billion (i.e., the average of Jan. 2025 estimates of $120 billion and Jan. 2026 revenue estimates of $157.38). As a result, multiplying 0.535 by $138.69b results in an NTM FCF estimate of $74.2 billion.That is 88.8% over the TTM FCF of $39.3 billion. In other words, FCF is set to explode.Target Price or NVDA Stock Based on Its FCF EstimateThis means that Nvidia could be worth significantly more using an FCF yield metric. For example, the market would likely give the stock a 1.5% dividend yield if it were to pay out 100% of that FCF.Therefore, if we divide the NTM FCF estimate of $74.2 billion by 1.5% we get a market cap estimate of almost $5 trillion. For example, $74.2b/0.015 = 4,947 billion, or $4.95 trillion.That is 53.1% over the market cap of Nvidia on Friday of $3.231 trillion. In other words, NVDA stock is worth 53% more, or about $200 per share.Analysts are raising their valuation estimates. For example, AnaChart.com, a new sell-side analyst tracking service, shows that the average of 39 analysts is now $234.45 per share.One way to play this is to sell short out-of-the-money (OTM) put options.Shorting OTM PutsFor example, look at the July 12 expiration period, 25 days from now. It shows that the $127 strike price puts, trade for $4.15 on the bid side. That represents an unusually high annual return of 47.71% for the selling side.$NVDA 20240712 127.0 PUT$ NVDA puts expiring July 12 - As of June 18This also means that the short seller has good downside protection. For example, even if the stock falls to $127 on or before July 12, the investor's breakeven point is $127-$4.35, or $122.65 per share.The bottom line is that NVDA is worth considerably more from here. One way for existing shareholders to play this profitably is to short OTM puts in nearby expiry periods.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":318218992771208,"gmtCreate":1718717748002,"gmtModify":1718717751448,"author":{"id":"3581556348949722","authorId":"3581556348949722","authorIdStr":"3581556348949722","name":"Val準凖","avatar":"https://static.tigerbbs.com/fc78ba8079eaf21b89d9286a3857c533","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":5,"crmLevelSwitch":0,"idStr":"3581556348949722"},"htmlText":"Sell sell sell&nbsp;","listText":"Sell sell sell&nbsp;","text":"Sell sell sell","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/318218992771208","repostId":2444194945,"repostType":2,"repost":{"id":"2444194945","pubTimestamp":1718711147,"share":"https://ttm.financial/m/news/2444194945?lang=&edition=fundamental","pubTime":"2024-06-18 19:45","market":"us","language":"en","title":"Option Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts","url":"https://stock-news.laohu8.com/highlight/detail?id=2444194945","media":"Barchart","summary":"$Nvidia Inc (NVDA)$ stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could b","content":"<html><head></head><body><p><a href=\"https://laohu8.com/S/NVDA\">Nvidia Inc </a> stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth $200 per share or 53% more. One way to play this is to short out-of-the-money puts.</p><p>This valuation assumes that Nvidia will make at least 53.5% FCF margins over the next year and that analysts&#39; revenue forecasts come true. This article will explain how this works out.</p><p>NVDA stock is trading for $131.9 per share in premarket trading on Tuesday, June 18. This is after the company recently split its shares effective last week on a 10-for-1 forward basis.</p><h3 id=\"id_42864721\">Strong Free Cash Flow Margins</h3><p>Seeking Alpha now shows that estimates for revenue for 2025 (i.e., the year ending Jan. 2026) is now $157.38 billion. That is revised up from $154.82 billion shown in my prior articles.</p><p>Moreover, last quarter the company made $14.9b in FCF on $26 billion in revenue. That means its FCF margin was an astounding 57.35% as I showed in the May 24 article. This is up from its prior quarter&#39;s 50.75% FCF margin and the trailing 12-month (TTM) FCF margin of 49.3%.</p><p>So, if Nvidia makes at least 53.5% FCF margins over the next 12 months (NTM) we can derive its NTM FCF. This assumes revenue averages at least $138.69 billion (i.e., the average of Jan. 2025 estimates of $120 billion and Jan. 2026 revenue estimates of $157.38). As a result, multiplying 0.535 by $138.69b results in an NTM FCF estimate of $74.2 billion.</p><p>That is 88.8% over the TTM FCF of $39.3 billion. In other words, FCF is set to explode.</p><h3 id=\"id_3537174762\">Target Price or NVDA Stock Based on Its FCF Estimate</h3><p>This means that Nvidia could be worth significantly more using an FCF yield metric. For example, the market would likely give the stock a 1.5% dividend yield if it were to pay out 100% of that FCF.</p><p>Therefore, if we divide the NTM FCF estimate of $74.2 billion by 1.5% we get a market cap estimate of almost $5 trillion. For example, $74.2b/0.015 = 4,947 billion, or $4.95 trillion.</p><p>That is 53.1% over the market cap of Nvidia on Friday of $3.231 trillion. In other words, NVDA stock is worth 53% more, or about <strong>$200 per share</strong>.</p><p>Analysts are raising their valuation estimates. For example, AnaChart.com, a new sell-side analyst tracking service, shows that the average of 39 analysts is now $234.45 per share.</p><p>One way to play this is to sell short out-of-the-money (OTM) put options.</p><h3 id=\"id_2553537680\">Shorting OTM Puts</h3><p>For example, look at the July 12 expiration period, 25 days from now. It shows that the $127 strike price puts, trade for $4.15 on the bid side. That represents an unusually high annual return of 47.71% for the selling side.</p><p><a href=\"https://ttm.financial/OPT/NVDA%2020240712%20127.0%20PUT\" title=\"$NVDA 20240712 127.0 PUT$\" target=\"_blank\">$NVDA 20240712 127.0 PUT$</a></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/d8077208e1ccec09ab849e548bf967e7\" alt=\" NVDA puts expiring July 12 - As of June 18\" title=\" NVDA puts expiring July 12 - As of June 18\" tg-width=\"1170\" tg-height=\"1023\"/><span> NVDA puts expiring July 12 - As of June 18</span></p><p>This also means that the short seller has good downside protection. For example, even if the stock falls to $127 on or before July 12, the investor&#39;s breakeven point is $127-$4.35, or $122.65 per share.</p><p>The bottom line is that NVDA is worth considerably more from here. One way for existing shareholders to play this profitably is to short OTM puts in nearby expiry periods.</p></body></html>","source":"barchart_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Option Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOption Witch | Nvidia Stock Could Be Worth $200 Per Share, Short OTM Puts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-18 19:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia Inc  stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth ...</p>\n\n<a href=\"https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","NVDA":"英伟达","BK4503":"景林资产持仓","BK4551":"寇图资本持仓","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4581":"高盛持仓","BK4099":"汽车制造商","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4579":"人工智能","LU0234570918.USD":"高盛全球核心股票组合Acc Close","IE0034235295.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"A\" (USD) ACC","LU0238689110.USD":"贝莱德环球动力股票基金","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","BK4529":"IDC概念","LU0072462426.USD":"贝莱德全球配置 A2","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","LU0079474960.USD":"联博美国增长基金A","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0056508442.USD":"贝莱德世界科技基金A2","BK4592":"伊斯兰概念","LU0080751232.USD":"富达环球多元动力基金A","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","BK4588":"碎股","BK4523":"印度概念","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0109392836.USD":"富兰克林科技股A","BK4550":"红杉资本持仓","BK4211":"区域性银行","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4587":"ChatGPT概念","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","BK4141":"半导体产品","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4527":"明星科技股","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC"},"source_url":"https://www.barchart.com/story/news/26865943/nvidia-stock-could-be-worth-200-per-share-based-on-its-fcf-53-more","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2444194945","content_text":"Nvidia Inc  stock could still be undervalued here, despite its runup lately. This is based on a valuation using its powerful free cash flow (FCF) and FCF margins. That means NVDA stock could be worth $200 per share or 53% more. One way to play this is to short out-of-the-money puts.This valuation assumes that Nvidia will make at least 53.5% FCF margins over the next year and that analysts' revenue forecasts come true. This article will explain how this works out.NVDA stock is trading for $131.9 per share in premarket trading on Tuesday, June 18. This is after the company recently split its shares effective last week on a 10-for-1 forward basis.Strong Free Cash Flow MarginsSeeking Alpha now shows that estimates for revenue for 2025 (i.e., the year ending Jan. 2026) is now $157.38 billion. That is revised up from $154.82 billion shown in my prior articles.Moreover, last quarter the company made $14.9b in FCF on $26 billion in revenue. That means its FCF margin was an astounding 57.35% as I showed in the May 24 article. This is up from its prior quarter's 50.75% FCF margin and the trailing 12-month (TTM) FCF margin of 49.3%.So, if Nvidia makes at least 53.5% FCF margins over the next 12 months (NTM) we can derive its NTM FCF. This assumes revenue averages at least $138.69 billion (i.e., the average of Jan. 2025 estimates of $120 billion and Jan. 2026 revenue estimates of $157.38). As a result, multiplying 0.535 by $138.69b results in an NTM FCF estimate of $74.2 billion.That is 88.8% over the TTM FCF of $39.3 billion. In other words, FCF is set to explode.Target Price or NVDA Stock Based on Its FCF EstimateThis means that Nvidia could be worth significantly more using an FCF yield metric. For example, the market would likely give the stock a 1.5% dividend yield if it were to pay out 100% of that FCF.Therefore, if we divide the NTM FCF estimate of $74.2 billion by 1.5% we get a market cap estimate of almost $5 trillion. For example, $74.2b/0.015 = 4,947 billion, or $4.95 trillion.That is 53.1% over the market cap of Nvidia on Friday of $3.231 trillion. In other words, NVDA stock is worth 53% more, or about $200 per share.Analysts are raising their valuation estimates. For example, AnaChart.com, a new sell-side analyst tracking service, shows that the average of 39 analysts is now $234.45 per share.One way to play this is to sell short out-of-the-money (OTM) put options.Shorting OTM PutsFor example, look at the July 12 expiration period, 25 days from now. It shows that the $127 strike price puts, trade for $4.15 on the bid side. That represents an unusually high annual return of 47.71% for the selling side.$NVDA 20240712 127.0 PUT$ NVDA puts expiring July 12 - As of June 18This also means that the short seller has good downside protection. For example, even if the stock falls to $127 on or before July 12, the investor's breakeven point is $127-$4.35, or $122.65 per share.The bottom line is that NVDA is worth considerably more from here. One way for existing shareholders to play this profitably is to short OTM puts in nearby expiry periods.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":11,"commentSize":2,"repostSize":2,"favoriteSize":5,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.28.1","shortVersion":"4.28.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2444194945"}