NVIDIA Corp (Symbol: NVDA) introduced new options contracts set to expire on September 9th. Notably, a put contract at the $140.00 strike price has a current bid of 5 cents, offering investors an opportunity to potentially acquire shares at $139.95, a substantial 34% discount from the current trading price of $213.35. The odds of this put contract expiring worthless stand at 98%.
Additionally, a call contract at the $285.00 strike price is available for the same expiration, also with a bid of 5 cents. If an investor sells this covered call while owning shares at $213.35, they could achieve a total return of 33.61% if the stock is called away at expiration. The likelihood of this call contract expiring worthless is 99%, allowing the investor to retain both the shares and the premium collected.
The implied volatility for the put contract is 102%, while the call contract has an implied volatility of 61%. Actual trailing twelve-month volatility for NVDA is calculated at 37%.
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.
