Disclaimer: The trades discussed in this blog reflect the author's personal strategies and decisions. These are not financial advice and should not be considered recommendations to buy, sell, or hold any financial instruments. The author is not a licensed financial advisor. Options trading carries significant risk, and readers should perform their own research or consult a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.
New trade on NVIDIA (NVDA). IV rank is around 55%... not spectacular, but enough to make selling premium worthwhile on a name like this. So I sold a put:
For reference, here is the current price chart of NVDA:
The $170 strike is a delta ~10 put expiring on August 21, 2026, collected for $1.56. That puts my breakeven at $168.44, roughly 17% below the current spot around $202.88. The strike also sits right at the $170.20 area that has acted as support multiple times over the past year, and comfortably below the lower expected move for the expiration date ($179.49).
There's a risk IV climbs as we approach earnings, which would work against a short vol position in the short term. That said, I would expect to be out of this trade well before the expiration date, the plan is to close on premium decay, not to sit through the whole cycle.
For the record, I'm OK with either rolling this or doing the wheel strategy if things go south for me.
Gianluca Longinotti is an experienced trader, advisor, and financial analyst with over a decade of professional experience in the banking sector, trading, and investment services.
Gianluca LonginottiFinance Writer - Traders Education