Investors in NVIDIA Corp (NVDA) have the opportunity to engage with new options contracts expiring on March 18. A notable put contract at the $175.00 strike price has a current bid of $5.20, allowing investors to effectively lower their cost basis to $169.80 if they sell-to-open this contract. This represents an approximate 2% discount to the current trading price of $177.99 per share, with a 62% chance of expiring worthless.
Additionally, a call contract at the $180.00 strike price is available with a current bid of $7.10. If an investor executes a covered call at this price, they could see a total return of 5.12% by the expiration date, assuming the stock is called away. This strike represents about a 1% premium over the current trading price, with a 49% chance of the call contract expiring worthless. Both contracts have an implied volatility of approximately 51%.
