This earnings report Nvidia options implied volatility is higher than before. Option sellers are better suited than buyers. Institutions that despise the next cycle are buying forwards.
The seller may also consider the sell call in addition to the sell put. There is a strategy for earning gains and IVs: buy stocks + sell at-the-money calls. For example:
Buy 100 shares of Nvidia
Sell $NVDA 20231124 492.5 CALL$ (exercise price based on current stock price)
In the worst case scenario, if the stock price falls, it is equivalent to buying 100 shares at 470, but this method makes $1000 more than selling the 470 put option.
Of course, the worst case scenario for a limited income strategy for a seasoned stock trader is that stocks soar. For example, if the earnings report goes up 30%, then you may regret doing this strategy, because you can only earn 2000.
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