Investors in NVIDIA Corp (NASDAQ: NVDA) have access to new options as of today, specifically contracts expiring on July 8. Notably, a put contract at the $135 strike price has a bid of 1 cent, offering a potential cost basis for shares at $134.99, significantly lower than the current trading price of $203.19 per share. This put option is out-of-the-money by approximately 34%, with a 99% probability of expiring worthless.
On the call side, a $205 strike call contract is currently bid at $5.00. If an investor buys NVDA shares at $203.19 and sells this call, they could realize a total return of 3.35% by the expiration date. This call option is also slightly out-of-the-money, with a potential probability of expiring worthless at 53%. The implied volatility is 93% for the put and 36% for the call contract, while actual trailing twelve-month volatility stands at 35%.
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