Shorting Nvidia Out-of-the-Money Put Options Is Good Way to Make Extra Income

It makes sense for Nvidia Inc (NVDA) investors and also non-shareholders to sell short out-of-the-money Nvidia put options here. This is based on the high yields available in near-term expiry periods, such as two or three weeks away.

I discussed this in my last Barchart article on June 17, “Nvidia Stock Could Be Worth $200 Per Share Based on Its FCF, +53% More.” At the time, NVDA stock was at $131.03 and I suggested shorting the July 12 $127.00 strike price put option.