Sell Put Options to Lower Entry on Nvidia

21 days ago

Speaker

"So, what can we do to give ourselves an average price of around 180? That's what we're looking to do because 180 is pretty good. Even the price right now is good. But how can we get assigned, get shares, but also have an average cost lower than the current price? So, I'm going to show you exactly how to do that. So, what we're going to be looking to do is sell put options, but at the same time, if we sell 190 and we collect $4.95, which is roughly what we will get, it's going to give us an average cost that's lower than the current price."

The speaker outlines an options strategy to acquire Nvidia shares at an average price lower than the current trading range. By selling put options—specifically at the 190 strike to collect about $4.95 premium—the plan is to get assigned shares at roughly an entry point around 180, providing a discount relative to Nvidia's consolidation levels.

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