Investors in NVIDIA Corp (NVDA) gained access to new options today, with contracts expiring in June 2028. The newly available put contract at a $175 strike price has a current bid of $37.20, offering a potential effective purchase price of $137.80 after accounting for the premium. This represents a 2% discount to the current share price of $179.31, with a 69% probability that this put option will expire worthless, potentially yielding a 21.26% return on cash commitment.
On the call side, a $215 strike price contract is currently bidding at $40.95. If an investor sells this covered call while holding shares at the current price, they could see a total return of 42.74% if the option is exercised by expiration. The strike price is approximately 20% above the current trading value, with a 42% chance of the contract expiring worthless, which would allow the investor to retain the premium collected and shares. The implied volatility for both the put and call contracts is roughly 46%.
