This Nvidia Stock Option Trade Has No Upside Risk, Limited Downside Risk

Group 1 - Nvidia is being analyzed for a broken-wing butterfly options trade, which presents no risk on the upside and potential income on the downside [1][4] - The trade setup involves buying puts at different strike prices, with the upper-strike put 5 points away from the middle put and the lower-strike put 10 points away, allowing for a slight credit of around $40 [4][11] - The ideal profit scenario occurs if Nvidia trades between $155 and $160 at expiration, with maximum profit of $540 if it hits $155 [5][6] Group 2 - The trade has a defined risk, with a maximum loss of $460 if Nvidia falls below $145, and a breakeven point at $149.60 [6] - Nvidia stock has high ratings from Investor's Business Daily, including a Composite Rating of 99 and an Earnings Per Share Rating of 99, ranking first in its group [8] - Nvidia is expected to report earnings in late November, which reduces earnings risk for this trade [8]