Investors in NVIDIA Corp (NVDA) can now access new options contracts expiring in April 2027, providing an opportunity for higher premiums due to a longer time horizon. Notably, the put contract at a $220 strike price currently has a bid of $22.60, allowing sellers to effectively lower their cost basis to $197.40 per share, compared to the current market price of $221.16.
The put option carries a 60% likelihood of expiring worthless, potentially offering a 10.27% return on the cash commitment, or 17.28% annualized. Meanwhile, the call contract at a $230 strike price has a bid of $24.45, enabling a total return of 15.05% if shares are sold at that price at expiration, despite a 46% chance of the contract expiring worthless.
The implied volatility for the put is 39%, while the call’s is 40%, with actual trailing volatility calculated at 38% based on the last 251 trading days.
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