Investors in NVIDIA Corp (NVDA) can now trade new options expiring in February 2027. Notably, a put contract at a $195 strike price has a current bid of $20.60, suggesting that if sold, investors would effectively purchase shares at a cost basis of $174.40. This price reflects a 1% discount to the current trading price of $197.05, with a 60% chance the put could expire worthless, offering a potential return of 10.56% on cash commitment.
Conversely, a call contract at a $210 strike price is available with a bid of $22.60. If investors buy NVDA shares at $197.05 and sell this call, they could see an 18.04% return if exercised. The $210 strike represents roughly a 7% premium to the current share price, with a 48% chance of the call expiring worthless, resulting in an 11.47% boost to returns. Implied volatility for the put is at 41% and 44% for the call, while actual volatility over the past year is calculated at 35%.
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