Investors in NVIDIA Corp (NVDA) encountered new options available for the May 13th expiration. A put contract at a $130.00 strike price, currently with a bid of $0.01, requires a commitment to purchase shares at that price, effectively lowering the cost basis to $129.99 compared to the current trading price of $213.18—a discount of approximately 39%. Analysts suggest a 98% chance that this put contract will expire worthless, which would yield a return of 0.01% on the cash commitment.
On the call side, a $215.00 strike contract has a bid of $5.80. If NVDA shares are bought at $213.18 and a covered call is sold, the investor could secure a total return of 3.57% at expiration. The odds of this contract expiring worthless are estimated at 53%, potentially allowing the investor to retain both the shares and the collected premium, which would amount to a 2.72% added return. Current implied volatilities for the put and call contracts are 118% and 41%, respectively.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
