Nvidia Bull Put Spread Could Return 22%

Nvidia (NVDA) has been range bound for a few months, but could be ready to start getting back into rally mode with earnings just around the corner.

NVDA rates as a Strong Buy according to 44 analysts with 3 Moderate Buy ratings, 1 Hold rating and 1 Strong Sell rating.

NVIDIA is a global leader in visual computing and the original inventor of the GPU, which revolutionized graphics and parallel processing.

Its focus has expanded from PC graphics to AI-driven solutions powering high-performance computing, gaming, VR, robotics, and autonomous vehicles.

With dominant positions in data centers and strategic partnerships with major cloud providers, NVIDIA continues to shape multi-billion-dollar tech markets.

Today, we’re going to look at a bull put spread trade. 

A bull put spread is a bullish trade that also can benefit from a drop in implied volatility.

The maximum profit for a bull put spread is limited to the premium received while the maximum potential loss is also capped. To calculate the maximum loss, take the difference in the strike prices of the long and short options, and subtract the premium received.

NVDA BULL PUT SPREAD

Implied volatility is currently sitting at 36.13% which gives NVDA an IV Percentile of 27% and an IV Rank of 10.19%.

Nvidia’s expected move between now and May 15th is around 7.8% in either direction. On the downside, that would put NVDA stock at around $168.

In other words, the…