Trade idea NVDA Cash Secured Put $320
Considering that Nvidia is now at all time highs, and reaching close to 1 trillion market cap. The stock is now way much higher than its November 2021 high of $346.47.
Due to the gap up on earnings and drifting too far away from the 50 daily moving average, it is likely possible that the stock should work its price action downwards, but give it some time for this to play out.
One trade idea is to sell a cash secured put of strike price $320, with contract expiration on third Friday of July. This will allow you to collect around $525 per contract. However you have to be prepared to own a hundred shares at $32,000 if the strike price is reached and the option is assigned.
Modify on 2023-05-26 23:31
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.
It will drop $40 or so in the coming weeks. Not because it is a bad stock. It is highly overbought and the expected move in the options world is +-$40.
this better go to $300 and below or I will end up closing my short with a big loss.
people are quietly selling Nvidia, taking "chips" off the table....go figure what's next....
Nvidia deserves this PE. It does something no one in the world does
AI race is here and only NVDIA has arms for this race as of now
This beast has doubled every year for 5 years.
It will bounce back stronger ! Next will be 450+ !
Buying ASML which allows NVDA to build its chips