Assessing Nvidia's Stock Performance and Valuation.

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Source: Investor's Business Daily
Assessing Nvidia's Stock Performance and Valuation.
Photo: Investor's Business Daily
TL;DR Summary

A calendar spread trade on Nvidia stock involves selling a short-term option and buying a longer-term option with the same strike price. This income trade generates around $1,310 in premium and costs around $1,900, resulting in a net cost of $590 per spread. The estimated maximum profit is $835, but the trade is considered advanced and not recommended for beginners. A profit target of 20% and a stop loss if Nvidia stock breaks through either 245 or 290 are recommended, with a risk of not more than 2%-3% of capital. Options are risky and investors can lose 100% of their investment.

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