Nvidia Stock Is on a Tear Up 86% YTD - Pushing Its Put Premiums Sky High

Nvidia (NVDA) stock is up 86% YTD closing at $271.19 after ending 2022 at $146.14. It's also up over 3.2% in the last month. Nvidia's valuation is now high along with the level of its put option premiums.  Investors fear NVDA stock will tank when its earnings come out in mid-May. As a result, this is attracting short-put traders for income plays.

As things stand NVDA stock trades on a forward multiple of 60x earnings, a sky-high price-to-earnings (P/E) ratio. However, investors more or less already expect there will be no recession in its semiconductor business. In addition, analysts are likely already projecting huge earnings gains for the year ending Jan. 2025 (i.e., for 2024).