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