Sell Put Options on NVDA for Lower Entry Cost

about 1 month ago

"I personally would be looking to sell put options a little more aggressively at the money. Maybe 180. Stagger a setup of 185, 180, and 170. Because if you do this going out two to four weeks, you could potentially collect enough premium over two or three months to give you a decent average cost. You're looking at somewhere between 300 to 500 per put, which is $3 to $5 every 2 to 3 weeks. So over two months, you could lower your cost by $15. And 185 minus 15 is 170."

The speaker advocates for selling put options on Nvidia (NVDA) to achieve a lower entry price, suggesting a staggered strategy with strikes at 185, 180, and 170. The approach is designed to collect premiums over a short-term period (2 to 4 weeks), which can effectively lower the average cost basis for a long-term position in the stock.

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