Nvidia Stock Could Still Peak Higher Based on Targets - Time to Short OTM Puts

Nvidia Inc (NVDA) stock is clearly on a tear, up over 198% YTD and even 12.8% this month as of June 16 when it closed at $426.92. On May 31, it was at $378.34, but as I pointed out in an earlier article on May 30, options premiums were heavily skewed to the call side. That showed investors were still heavily bullish on the NVDA stock.

That article, “Nvidia Stock Surges - The Ultimate FOMO Stock, Pushing Its Call Option Premiums Sky High,” indicated huge optimism in the stock. However, now it makes sense to begin to short out-of-the-money (OTM) puts, in case NVDA stock begins to pull back. This is also a good way to take advantage of huge put option premiums to create extra income.