A One Day NVDA Trade

Options, Technology Stocks, Videos


Nvidia (NVDA), the graphics card giant, was up 12% one day last week. The company announced it would be creating a platform for metaverse technology, and the stock took off. The metaverse is the latest buzzword in the investment space and refers to collaboration in the virtual world. An interesting, out-of-the-box trade idea is to place a one day covered call on NVDA. While there is downside risk if the stock mean reverts, selling an out-of-the-money call that expires in a day can provide a 1% return in less than 24 hours, while still allowing for upside in the stock.