Nvidia Still Looks Cheap - Shorting Out-of-the-Money NVDA Put Options Is Attractive

Nvidia Inc. (NVDA) stock is still cheap here. Shorting one-month out Nvidia put options yields over 1.6% at a strike price 7% lower than the current price. Value investors can set a lower buy-in point and get paid with this play.

NVDA is at $177.39 as of the April 2 close (markets closed today), up from recent lows. It hit a recent trough of $165.17 on March 30. But it could be worth significantly more, given its strong free cash flow (FCF) as well as analysts' price targets.