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Option Witch | NVDA Stock Is Still Undervalued, Short Put is a Great Income Play

Barchart05-07

Nvidia Inc. stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for ...

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DailyTrader7
·05-07
Time to break the $1k ceiling
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MIe
·05-07
Nvidia upside q1 earnings 22 may
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This creates a good short-put play, especially for ...</p>\n\n<a href=\"https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play\">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 | NVDA Stock Is Still Undervalued, Short Put is a Great Income Play</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 | NVDA Stock Is Still Undervalued, Short Put is a Great Income Play\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-07 19:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia Inc. stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for ...</p>\n\n<a href=\"https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play\">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":"LU0256863811.USD","symbol_name":"ALLIANZ US EQUITY \"A\" INC","start_time":0,"source_url":"https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play","article_id":"2433049774","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2433049774","pubTimestamp":1715080729,"sourceInfo":{"source_id":"barchart_highlight","name":"Barchart"},"weMediaInfo":null,"summary":"Nvidia Inc.  stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for existing investors.NVDA stock is up 3.5% today to $918.44. But it is still worth over $1,000 per share. This is based on analyst target prices and also an analysis of the value of its huge free cash flow .But the market is still scared about its valuation. That has pushed up its put option premiums. That presents an excellent shorting opportunity for investors who sell short out-of-the-money  put options in nearby expiry periods.I discussed this in my last Barchart article on April 18, “Nvidia Stock Still Looks Undervalued - Good for Investors Who Sell Short OTM Puts for Income.”As it turns out the stock closed at $887.89, so these puts stayed out-of-the-money. Existing investors who owned NVDA stock made money in two ways. First, they made the 2.45% income by shorting these OTM puts. 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This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for existing investors.NVDA stock is up 3.5% today to $918.44. But it is still worth over $1,000 per share. This is based on analyst target prices and also an analysis of the value of its huge free cash flow (FCF).But the market is still scared about its valuation. That has pushed up its put option premiums. That presents an excellent shorting opportunity for investors who sell short out-of-the-money (OTM) put options in nearby expiry periods.Shorting OTM Puts in NVDA StockI discussed this in my last Barchart article on April 18, “Nvidia Stock Still Looks Undervalued - Good for Investors Who Sell Short OTM Puts for Income.” The May 3 expiration put option at the $850 strike price was trading for $20.80 on the bid side. That provided a 2.45% income play (i.e., $20.80/$880.00). This strike price was 3.6% out-of-the-money (OTM) as NVDA stock was at $881.86 on April 18.As it turns out the stock closed at $887.89, so these puts stayed out-of-the-money. Existing investors who owned NVDA stock made money in two ways. First, they made the 2.45% income by shorting these OTM puts. And they also gained the upside in the stock.This can be done again today, especially since NVDA stock still looks undervalued. Let's review the price targets for the stock.Price Targets for NVDA StockBased on analyst estimates, Nvidia could generate $62.5 billion in free cash flow over the next 12 months (NTM). That is based on a 50% FCF margin forecast, (it made 51% FCF margins last quarter). So, using analysts' revenue estimates of $112.07 billion in revenue this year and $137.81 billion next year (Seeking Alpha) and multiplying the average NTM revenue of $124.94 billion by 50%, we get a NTM FCF estimate of $62.47 billion.Next, using a 2.25% FCF yield metric (which is the same as multiplying FCF by 44.44x, Nvidia's market cap could rise to $2.78 trillion. That is 21% higher than Friday's market cap of $2.294 trillion.In other words, NVDA stock is worth at least 21% more than $887.89, or $1,074.35 per share. That is still 17% higher than today's price. Moreover, other analysts agree that NVDA has a higher price target. For example, Barchart's survey of 38 analysts shows that the average price target is $955.78. Refinitiv's survey (Yahoo! Finance) has an average price target of $1,008.90 for 47 analysts. AnaChart, a new sell-side analyst tracking service shows that the average of 38 analysts' target prices is $992.10.The bottom line is that all analysts see a significant upside in NVDA stock. That means shorting OTM puts again might make sense here, especially for long investors in the stock.Shorting OTM Puts in NVDA StockLook at the May 31 expiration option chain for NVDA put options. This is 25 days from today. It shows that out-of-the-money (OTM) put options still have high premiums. That makes shorting them a potentially profitable play.For example, look at the $880 strike price puts. It shows that the bid-side premium is $39.5, or a 4.48% put yield (i.e., $39.5/$880). That is for a strike price that is over 4.6% below today's price.‌$NVDA 20240531 880.0 PUT$ ‌‌$NVDA 20240531 870.0 PUT$Moreover, the $870 strike price has a premium of $35.50 per contract with a strike price that is 5.8% below today's price. That provides a short seller with a bid side yield of 4.08%. These are extremely high yields compared to many other stocks.It also has a high level of risk. For example, unless the stock stays above $870 or $880 in the next 3 weeks or so, the short-put investor may have to buy more shares. The implied volatility is high at over 62%. That means the stock could fall significantly from here, based on its average price fluctuations.However, there is good downside protection on a breakeven basis. For example, the investor who shorts the $870 strike price has a breakeven level of $870-$36.80, or $833.20 per share. That is almost 10% below today's price. And remember this is for just 25 days.Moreover, the short seller does not have to hold this play until expiration. In the next two weeks, if the stock does not fall significantly, the put option premium is likely to be much lower. That allows the investor to cover their short play and potentially roll it over to another period, booking the profit.The bottom line is that NVDA stock still has a good upside. For existing investors, one way to play this is to short OTM puts. That way they can take advantage of the high put option premiums to gain extra income, as well as make money if the stock moves higher. The extra income also helps hedge any short-term downside in their long position in NVDA stock.","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":303372404650248,"gmtCreate":1715085876972,"gmtModify":1715085880465,"author":{"id":"4111842224562182","authorId":"4111842224562182","name":"DailyTrader7","avatar":"https://community-static.tradeup.com/news/221e86f826e5d51d2c15d2af518a6f07","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4111842224562182","authorIdStr":"4111842224562182"},"htmlText":"Time to break the $1k ceiling","listText":"Time to break the $1k ceiling","text":"Time to break the $1k ceiling","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/303372404650248","repostId":2433049774,"repostType":2,"repost":{"id":"2433049774","pubTimestamp":1715080729,"share":"https://ttm.financial/m/news/2433049774?lang=&edition=fundamental","pubTime":"2024-05-07 19:18","market":"us","language":"en","title":"Option Witch | NVDA Stock Is Still Undervalued, Short Put is a Great Income Play","url":"https://stock-news.laohu8.com/highlight/detail?id=2433049774","media":"Barchart","summary":"Nvidia Inc.  stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for existing investors.NVDA stock is up 3.5% today to $918.44. But it is still worth over $1,000 per share. This is based on analyst target prices and also an analysis of the value of its huge free cash flow .But the market is still scared about its valuation. That has pushed up its put option premiums. That presents an excellent shorting opportunity for investors who sell short out-of-the-money  put options in nearby expiry periods.I discussed this in my last Barchart article on April 18, “Nvidia Stock Still Looks Undervalued - Good for Investors Who Sell Short OTM Puts for Income.”As it turns out the stock closed at $887.89, so these puts stayed out-of-the-money. Existing investors who owned NVDA stock made money in two ways. First, they made the 2.45% income by shorting these OTM puts. And they ","content":"<html><head></head><body><p><a href=\"https://laohu8.com/S/NVDA\">Nvidia Inc.</a> stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for existing investors.</p><p>NVDA stock is up 3.5% today to $918.44. But it is still worth over $1,000 per share. This is based on analyst target prices and also an analysis of the value of its huge free cash flow (FCF).</p><p>But the market is still scared about its valuation. That has pushed up its put option premiums. That presents an excellent shorting opportunity for investors who sell short out-of-the-money (OTM) put options in nearby expiry periods.</p><h3 id=\"id_4175916093\">Shorting OTM Puts in NVDA Stock</h3><p>I discussed this in my last Barchart article on April 18, “Nvidia Stock Still Looks Undervalued - Good for Investors Who Sell Short OTM Puts for Income.” </p><p>The May 3 expiration put option at the $850 strike price was trading for $20.80 on the bid side. That provided a 2.45% income play (i.e., $20.80/$880.00). This strike price was 3.6% out-of-the-money (OTM) as NVDA stock was at $881.86 on April 18.</p><p>As it turns out the stock closed at $887.89, so these puts stayed out-of-the-money. Existing investors who owned NVDA stock made money in two ways. First, they made the 2.45% income by shorting these OTM puts. And they also gained the upside in the stock.</p><p>This can be done again today, especially since NVDA stock still looks undervalued. Let&#39;s review the price targets for the stock.</p><h3 id=\"id_3380802235\">Price Targets for NVDA Stock</h3><p>Based on analyst estimates, Nvidia could generate $62.5 billion in free cash flow over the next 12 months (NTM). That is based on a 50% FCF margin forecast, (it made 51% FCF margins last quarter). </p><p>So, using analysts&#39; revenue estimates of $112.07 billion in revenue this year and $137.81 billion next year (Seeking Alpha) and multiplying the average NTM revenue of $124.94 billion by 50%, we get a NTM FCF estimate of $62.47 billion.</p><p>Next, using a 2.25% FCF yield metric (which is the same as multiplying FCF by 44.44x, Nvidia&#39;s market cap could rise to $2.78 trillion. That is 21% higher than Friday&#39;s market cap of $2.294 trillion.</p><p>In other words, NVDA stock is worth at least 21% more than $887.89, or $1,074.35 per share. That is still 17% higher than today&#39;s price. </p><p>Moreover, other analysts agree that NVDA has a higher price target. For example, Barchart&#39;s survey of 38 analysts shows that the average price target is $955.78. Refinitiv&#39;s survey (Yahoo! Finance) has an average price target of $1,008.90 for 47 analysts. AnaChart, a new sell-side analyst tracking service shows that the average of 38 analysts&#39; target prices is $992.10.</p><p>The bottom line is that all analysts see a significant upside in NVDA stock. That means shorting OTM puts again might make sense here, especially for long investors in the stock.</p><h3 id=\"id_3968225722\">Shorting OTM Puts in NVDA Stock</h3><p>Look at the May 31 expiration option chain for NVDA put options. This is 25 days from today. It shows that out-of-the-money (OTM) put options still have high premiums. That makes shorting them a potentially profitable play.</p><p>For example, look at the $880 strike price puts. It shows that the bid-side premium is $39.5, or a 4.48% put yield (i.e., $39.5/$880). That is for a strike price that is over 4.6% below today&#39;s price.</p><p>‌<a href=\"https://ttm.financial/OPT/NVDA%2020240531%20880.0%20PUT\" title=\"$NVDA 20240531 880.0 PUT$  \" class=\"immutable-element\">$NVDA 20240531 880.0 PUT$</a></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/de0a9b28ddec03cc593909e330ebfcee\" tg-width=\"1170\" tg-height=\"1372\"/></p><p> </p><p>‌‌<a href=\"https://ttm.financial/OPT/NVDA%2020240531%20870.0%20PUT\" title=\"$NVDA 20240531 870.0 PUT$  \" class=\"immutable-element\">$NVDA 20240531 870.0 PUT$</a></p><p>Moreover, the $870 strike price has a premium of $35.50 per contract with a strike price that is 5.8% below today&#39;s price. That provides a short seller with a bid side yield of 4.08%. These are extremely high yields compared to many other stocks.</p><p>It also has a high level of risk. For example, unless the stock stays above $870 or $880 in the next 3 weeks or so, the short-put investor may have to buy more shares. The implied volatility is high at over 62%. That means the stock could fall significantly from here, based on its average price fluctuations.</p><p>However, there is good downside protection on a breakeven basis. For example, the investor who shorts the $870 strike price has a breakeven level of $870-$36.80, or $833.20 per share. That is almost 10% below today&#39;s price. And remember this is for just 25 days.</p><p>Moreover, the short seller does not have to hold this play until expiration. In the next two weeks, if the stock does not fall significantly, the put option premium is likely to be much lower. That allows the investor to cover their short play and potentially roll it over to another period, booking the profit.</p><p>The bottom line is that NVDA stock still has a good upside. For existing investors, one way to play this is to short OTM puts. That way they can take advantage of the high put option premiums to gain extra income, as well as make money if the stock moves higher. The extra income also helps hedge any short-term downside in their long position in NVDA stock.</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 | NVDA Stock Is Still Undervalued, Short Put is a Great Income Play</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 | NVDA Stock Is Still Undervalued, Short Put is a Great Income Play\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-07 19:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia Inc. stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for ...</p>\n\n<a href=\"https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","LU0061474960.USD":"天利环球焦点基金AU Acc","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","BK4549":"软银资本持仓","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H","BK4548":"巴美列捷福持仓","LU0109392836.USD":"富兰克林科技股A","BK4529":"IDC概念","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","BK4567":"ESG概念","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","NVDA":"英伟达","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","BK4550":"红杉资本持仓","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","BK4141":"半导体产品","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4551":"寇图资本持仓","LU0079474960.USD":"联博美国增长基金A","LU0082616367.USD":"摩根大通美国科技A（dist）"},"source_url":"https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2433049774","content_text":"Nvidia Inc. stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for existing investors.NVDA stock is up 3.5% today to $918.44. But it is still worth over $1,000 per share. This is based on analyst target prices and also an analysis of the value of its huge free cash flow (FCF).But the market is still scared about its valuation. That has pushed up its put option premiums. That presents an excellent shorting opportunity for investors who sell short out-of-the-money (OTM) put options in nearby expiry periods.Shorting OTM Puts in NVDA StockI discussed this in my last Barchart article on April 18, “Nvidia Stock Still Looks Undervalued - Good for Investors Who Sell Short OTM Puts for Income.” The May 3 expiration put option at the $850 strike price was trading for $20.80 on the bid side. That provided a 2.45% income play (i.e., $20.80/$880.00). This strike price was 3.6% out-of-the-money (OTM) as NVDA stock was at $881.86 on April 18.As it turns out the stock closed at $887.89, so these puts stayed out-of-the-money. Existing investors who owned NVDA stock made money in two ways. First, they made the 2.45% income by shorting these OTM puts. And they also gained the upside in the stock.This can be done again today, especially since NVDA stock still looks undervalued. Let's review the price targets for the stock.Price Targets for NVDA StockBased on analyst estimates, Nvidia could generate $62.5 billion in free cash flow over the next 12 months (NTM). That is based on a 50% FCF margin forecast, (it made 51% FCF margins last quarter). So, using analysts' revenue estimates of $112.07 billion in revenue this year and $137.81 billion next year (Seeking Alpha) and multiplying the average NTM revenue of $124.94 billion by 50%, we get a NTM FCF estimate of $62.47 billion.Next, using a 2.25% FCF yield metric (which is the same as multiplying FCF by 44.44x, Nvidia's market cap could rise to $2.78 trillion. That is 21% higher than Friday's market cap of $2.294 trillion.In other words, NVDA stock is worth at least 21% more than $887.89, or $1,074.35 per share. That is still 17% higher than today's price. Moreover, other analysts agree that NVDA has a higher price target. For example, Barchart's survey of 38 analysts shows that the average price target is $955.78. Refinitiv's survey (Yahoo! Finance) has an average price target of $1,008.90 for 47 analysts. AnaChart, a new sell-side analyst tracking service shows that the average of 38 analysts' target prices is $992.10.The bottom line is that all analysts see a significant upside in NVDA stock. That means shorting OTM puts again might make sense here, especially for long investors in the stock.Shorting OTM Puts in NVDA StockLook at the May 31 expiration option chain for NVDA put options. This is 25 days from today. It shows that out-of-the-money (OTM) put options still have high premiums. That makes shorting them a potentially profitable play.For example, look at the $880 strike price puts. It shows that the bid-side premium is $39.5, or a 4.48% put yield (i.e., $39.5/$880). That is for a strike price that is over 4.6% below today's price.‌$NVDA 20240531 880.0 PUT$ ‌‌$NVDA 20240531 870.0 PUT$Moreover, the $870 strike price has a premium of $35.50 per contract with a strike price that is 5.8% below today's price. That provides a short seller with a bid side yield of 4.08%. These are extremely high yields compared to many other stocks.It also has a high level of risk. For example, unless the stock stays above $870 or $880 in the next 3 weeks or so, the short-put investor may have to buy more shares. The implied volatility is high at over 62%. That means the stock could fall significantly from here, based on its average price fluctuations.However, there is good downside protection on a breakeven basis. For example, the investor who shorts the $870 strike price has a breakeven level of $870-$36.80, or $833.20 per share. That is almost 10% below today's price. And remember this is for just 25 days.Moreover, the short seller does not have to hold this play until expiration. In the next two weeks, if the stock does not fall significantly, the put option premium is likely to be much lower. That allows the investor to cover their short play and potentially roll it over to another period, booking the profit.The bottom line is that NVDA stock still has a good upside. For existing investors, one way to play this is to short OTM puts. That way they can take advantage of the high put option premiums to gain extra income, as well as make money if the stock moves higher. The extra income also helps hedge any short-term downside in their long position in NVDA stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":303315641286680,"gmtCreate":1715071927723,"gmtModify":1715071932405,"author":{"id":"3577182936341023","authorId":"3577182936341023","name":"MIe","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/f84d87792f02cf78e80ee34979fd31e5","crmLevel":6,"crmLevelSwitch":0,"idStr":"3577182936341023","authorIdStr":"3577182936341023"},"htmlText":"Nvidia upside q1 earnings 22 may&nbsp;","listText":"Nvidia upside q1 earnings 22 may&nbsp;","text":"Nvidia upside q1 earnings 22 may","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/303315641286680","repostId":2433049774,"repostType":2,"repost":{"id":"2433049774","pubTimestamp":1715080729,"share":"https://ttm.financial/m/news/2433049774?lang=&edition=fundamental","pubTime":"2024-05-07 19:18","market":"us","language":"en","title":"Option Witch | NVDA Stock Is Still Undervalued, Short Put is a Great Income Play","url":"https://stock-news.laohu8.com/highlight/detail?id=2433049774","media":"Barchart","summary":"Nvidia Inc.  stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for existing investors.NVDA stock is up 3.5% today to $918.44. But it is still worth over $1,000 per share. This is based on analyst target prices and also an analysis of the value of its huge free cash flow .But the market is still scared about its valuation. That has pushed up its put option premiums. That presents an excellent shorting opportunity for investors who sell short out-of-the-money  put options in nearby expiry periods.I discussed this in my last Barchart article on April 18, “Nvidia Stock Still Looks Undervalued - Good for Investors Who Sell Short OTM Puts for Income.”As it turns out the stock closed at $887.89, so these puts stayed out-of-the-money. Existing investors who owned NVDA stock made money in two ways. First, they made the 2.45% income by shorting these OTM puts. And they ","content":"<html><head></head><body><p><a href=\"https://laohu8.com/S/NVDA\">Nvidia Inc.</a> stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for existing investors.</p><p>NVDA stock is up 3.5% today to $918.44. But it is still worth over $1,000 per share. This is based on analyst target prices and also an analysis of the value of its huge free cash flow (FCF).</p><p>But the market is still scared about its valuation. That has pushed up its put option premiums. That presents an excellent shorting opportunity for investors who sell short out-of-the-money (OTM) put options in nearby expiry periods.</p><h3 id=\"id_4175916093\">Shorting OTM Puts in NVDA Stock</h3><p>I discussed this in my last Barchart article on April 18, “Nvidia Stock Still Looks Undervalued - Good for Investors Who Sell Short OTM Puts for Income.” </p><p>The May 3 expiration put option at the $850 strike price was trading for $20.80 on the bid side. That provided a 2.45% income play (i.e., $20.80/$880.00). This strike price was 3.6% out-of-the-money (OTM) as NVDA stock was at $881.86 on April 18.</p><p>As it turns out the stock closed at $887.89, so these puts stayed out-of-the-money. Existing investors who owned NVDA stock made money in two ways. First, they made the 2.45% income by shorting these OTM puts. And they also gained the upside in the stock.</p><p>This can be done again today, especially since NVDA stock still looks undervalued. Let&#39;s review the price targets for the stock.</p><h3 id=\"id_3380802235\">Price Targets for NVDA Stock</h3><p>Based on analyst estimates, Nvidia could generate $62.5 billion in free cash flow over the next 12 months (NTM). That is based on a 50% FCF margin forecast, (it made 51% FCF margins last quarter). </p><p>So, using analysts&#39; revenue estimates of $112.07 billion in revenue this year and $137.81 billion next year (Seeking Alpha) and multiplying the average NTM revenue of $124.94 billion by 50%, we get a NTM FCF estimate of $62.47 billion.</p><p>Next, using a 2.25% FCF yield metric (which is the same as multiplying FCF by 44.44x, Nvidia&#39;s market cap could rise to $2.78 trillion. That is 21% higher than Friday&#39;s market cap of $2.294 trillion.</p><p>In other words, NVDA stock is worth at least 21% more than $887.89, or $1,074.35 per share. That is still 17% higher than today&#39;s price. </p><p>Moreover, other analysts agree that NVDA has a higher price target. For example, Barchart&#39;s survey of 38 analysts shows that the average price target is $955.78. Refinitiv&#39;s survey (Yahoo! Finance) has an average price target of $1,008.90 for 47 analysts. AnaChart, a new sell-side analyst tracking service shows that the average of 38 analysts&#39; target prices is $992.10.</p><p>The bottom line is that all analysts see a significant upside in NVDA stock. That means shorting OTM puts again might make sense here, especially for long investors in the stock.</p><h3 id=\"id_3968225722\">Shorting OTM Puts in NVDA Stock</h3><p>Look at the May 31 expiration option chain for NVDA put options. This is 25 days from today. It shows that out-of-the-money (OTM) put options still have high premiums. That makes shorting them a potentially profitable play.</p><p>For example, look at the $880 strike price puts. It shows that the bid-side premium is $39.5, or a 4.48% put yield (i.e., $39.5/$880). That is for a strike price that is over 4.6% below today&#39;s price.</p><p>‌<a href=\"https://ttm.financial/OPT/NVDA%2020240531%20880.0%20PUT\" title=\"$NVDA 20240531 880.0 PUT$  \" class=\"immutable-element\">$NVDA 20240531 880.0 PUT$</a></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/de0a9b28ddec03cc593909e330ebfcee\" tg-width=\"1170\" tg-height=\"1372\"/></p><p> </p><p>‌‌<a href=\"https://ttm.financial/OPT/NVDA%2020240531%20870.0%20PUT\" title=\"$NVDA 20240531 870.0 PUT$  \" class=\"immutable-element\">$NVDA 20240531 870.0 PUT$</a></p><p>Moreover, the $870 strike price has a premium of $35.50 per contract with a strike price that is 5.8% below today&#39;s price. That provides a short seller with a bid side yield of 4.08%. These are extremely high yields compared to many other stocks.</p><p>It also has a high level of risk. For example, unless the stock stays above $870 or $880 in the next 3 weeks or so, the short-put investor may have to buy more shares. The implied volatility is high at over 62%. That means the stock could fall significantly from here, based on its average price fluctuations.</p><p>However, there is good downside protection on a breakeven basis. For example, the investor who shorts the $870 strike price has a breakeven level of $870-$36.80, or $833.20 per share. That is almost 10% below today&#39;s price. And remember this is for just 25 days.</p><p>Moreover, the short seller does not have to hold this play until expiration. In the next two weeks, if the stock does not fall significantly, the put option premium is likely to be much lower. That allows the investor to cover their short play and potentially roll it over to another period, booking the profit.</p><p>The bottom line is that NVDA stock still has a good upside. For existing investors, one way to play this is to short OTM puts. That way they can take advantage of the high put option premiums to gain extra income, as well as make money if the stock moves higher. The extra income also helps hedge any short-term downside in their long position in NVDA stock.</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 | NVDA Stock Is Still Undervalued, Short Put is a Great Income Play</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 | NVDA Stock Is Still Undervalued, Short Put is a Great Income Play\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-07 19:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia Inc. stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for ...</p>\n\n<a href=\"https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","LU0061474960.USD":"天利环球焦点基金AU Acc","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","BK4549":"软银资本持仓","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H","BK4548":"巴美列捷福持仓","LU0109392836.USD":"富兰克林科技股A","BK4529":"IDC概念","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","BK4567":"ESG概念","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","NVDA":"英伟达","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","BK4550":"红杉资本持仓","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","BK4141":"半导体产品","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4551":"寇图资本持仓","LU0079474960.USD":"联博美国增长基金A","LU0082616367.USD":"摩根大通美国科技A（dist）"},"source_url":"https://www.barchart.com/story/news/25988550/nvida-stock-is-still-undervalued-and-shorting-its-put-options-are-still-are-great-income-play","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2433049774","content_text":"Nvidia Inc. stock still looks undervalued here, even though the stock keeps rising. This is based on higher analyst revenue and FCF estimates. This creates a good short-put play, especially for existing investors.NVDA stock is up 3.5% today to $918.44. But it is still worth over $1,000 per share. This is based on analyst target prices and also an analysis of the value of its huge free cash flow (FCF).But the market is still scared about its valuation. That has pushed up its put option premiums. That presents an excellent shorting opportunity for investors who sell short out-of-the-money (OTM) put options in nearby expiry periods.Shorting OTM Puts in NVDA StockI discussed this in my last Barchart article on April 18, “Nvidia Stock Still Looks Undervalued - Good for Investors Who Sell Short OTM Puts for Income.” The May 3 expiration put option at the $850 strike price was trading for $20.80 on the bid side. That provided a 2.45% income play (i.e., $20.80/$880.00). This strike price was 3.6% out-of-the-money (OTM) as NVDA stock was at $881.86 on April 18.As it turns out the stock closed at $887.89, so these puts stayed out-of-the-money. Existing investors who owned NVDA stock made money in two ways. First, they made the 2.45% income by shorting these OTM puts. And they also gained the upside in the stock.This can be done again today, especially since NVDA stock still looks undervalued. Let's review the price targets for the stock.Price Targets for NVDA StockBased on analyst estimates, Nvidia could generate $62.5 billion in free cash flow over the next 12 months (NTM). That is based on a 50% FCF margin forecast, (it made 51% FCF margins last quarter). So, using analysts' revenue estimates of $112.07 billion in revenue this year and $137.81 billion next year (Seeking Alpha) and multiplying the average NTM revenue of $124.94 billion by 50%, we get a NTM FCF estimate of $62.47 billion.Next, using a 2.25% FCF yield metric (which is the same as multiplying FCF by 44.44x, Nvidia's market cap could rise to $2.78 trillion. That is 21% higher than Friday's market cap of $2.294 trillion.In other words, NVDA stock is worth at least 21% more than $887.89, or $1,074.35 per share. That is still 17% higher than today's price. Moreover, other analysts agree that NVDA has a higher price target. For example, Barchart's survey of 38 analysts shows that the average price target is $955.78. Refinitiv's survey (Yahoo! Finance) has an average price target of $1,008.90 for 47 analysts. AnaChart, a new sell-side analyst tracking service shows that the average of 38 analysts' target prices is $992.10.The bottom line is that all analysts see a significant upside in NVDA stock. That means shorting OTM puts again might make sense here, especially for long investors in the stock.Shorting OTM Puts in NVDA StockLook at the May 31 expiration option chain for NVDA put options. This is 25 days from today. It shows that out-of-the-money (OTM) put options still have high premiums. That makes shorting them a potentially profitable play.For example, look at the $880 strike price puts. It shows that the bid-side premium is $39.5, or a 4.48% put yield (i.e., $39.5/$880). That is for a strike price that is over 4.6% below today's price.‌$NVDA 20240531 880.0 PUT$ ‌‌$NVDA 20240531 870.0 PUT$Moreover, the $870 strike price has a premium of $35.50 per contract with a strike price that is 5.8% below today's price. That provides a short seller with a bid side yield of 4.08%. These are extremely high yields compared to many other stocks.It also has a high level of risk. For example, unless the stock stays above $870 or $880 in the next 3 weeks or so, the short-put investor may have to buy more shares. The implied volatility is high at over 62%. That means the stock could fall significantly from here, based on its average price fluctuations.However, there is good downside protection on a breakeven basis. For example, the investor who shorts the $870 strike price has a breakeven level of $870-$36.80, or $833.20 per share. That is almost 10% below today's price. And remember this is for just 25 days.Moreover, the short seller does not have to hold this play until expiration. In the next two weeks, if the stock does not fall significantly, the put option premium is likely to be much lower. That allows the investor to cover their short play and potentially roll it over to another period, booking the profit.The bottom line is that NVDA stock still has a good upside. For existing investors, one way to play this is to short OTM puts. That way they can take advantage of the high put option premiums to gain extra income, as well as make money if the stock moves higher. The extra income also helps hedge any short-term downside in their long position in NVDA stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":8,"commentSize":2,"repostSize":2,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}