Nvidia's major benefits, how to use options to make money?

On February 9, Bloomberg reported that U.S. President Trump had approved Nvidia to export its H200 AI chips to China on the condition that the U.S. government could take a 25% share of sales. The move would mark a major lobbying victory for Nvidia and could allow it to regain billions of dollars in business it lost in China, a key global market.

Trump announced the decision on his Truth Social, thus ending weeks of discussions with his advisers about whether to approve the export of H200 chips to China. He added that sales will be limited to "approved customers" and the U.S. government will receive a 25% share. Other chipmakers, including Intel and AMD, will also be eligible to be licensed to sell chips to China.

Boosted by this news, Nvidia's U.S. stocks rose nearly 3% after hours, AMD rose more than 2%, and Intel rose nearly 1%.

Reuters said the move marked a shift in the Trump administration's policy, which initially restricted the sale of artificial intelligence chips to China, and was a "major victory" for Nvidia CEO Jensen Huang, who spent months lobbying the White House to relax export restrictions.

How to Catch Nvidia's Rising Profits with Bull Call Spreads

1. Strategy structure

Investors Build A on Nvidia (NVDA)Bull Call Spread, consisting of two Call options with the same expiration date:

• Buy lower strike priceCall: K ₁ = 175, premium spending $12.50

• Sell Higher Strike Price Call: K ₂ = 180, premium earns $8.75

The strategy belongs toDebit type, moreThe spread combination. Investors Expect Nvidia Stock to ExpireUp but limited gains； Looking to participate in the rise at a lower cost while capping profits.

2. Initial net expenditure

Net premium (per share) = 12.5 − 8.75 =$3.75/Share

1 mouth = 100 strands, therefore:

Total net expenditure = 3.75 × 100 =$375/contract

This is what investors pay when opening positionsMaximum potential loss。

3. Maximum profit

When Nvidia reaches the period price ≥ US $180, both Calls are in-the-money, and the price difference is fully triggered:

Strike spread

= 180 − 175

= $5/share

Maximum profit (per share) = 5 − 3. 75 =$1.25/share

Total Maximum Profit = 1.25 × 100 =$125/contract

4. Maximum loss

The maximum loss is the net premium paid when opening the position:

Maximum loss =$375/contract

Happens at:

When Nvidia's futures price is ≤ $175, both Calls are out-of-the-money, and all options become zero value.

5. Break-even point

Breakeven = K ₁ + Net Expenses = 175 + 3.75 =$178.75

Maturity judgment rules:

• ≤ $178.75 → investor loss

• = $178.75 → Flat

• ≥ $178. 75 → Investor Earnings

6. Risk and return characteristics

• Maximum benefit: $125/contract (limited)

• Maximum loss: $375/contract (limited)

• Profit-loss ratio: Gain: Loss = 125: 375 =1: 3

• Applicable situations: Investors expect Nvidia stock ahead of expirationRising to around or slightly above 180, but do not want to directly buy naked Call at a higher cost.