How to Ride Nvidia’s Next 70% Rally With One Smart Options Trade

Group 1 - Nvidia's stock price has recently settled around $181 after reaching over $190, influenced by profit-taking and a surprise tariff announcement on China [1] - CEO Jensen Huang stated that Nvidia is "100% out of China," which may not align with investor expectations [1] - Despite recent fluctuations, Nvidia remains a leader in AI chips, with a year-to-date stock increase of 35% and an average analyst rating of 4.70 out of 5, with a target price of $320 over the next twelve months [2] Group 2 - Analysts suggest that purchasing deep in-the-money (ITM) LEAPS calls on Nvidia could be a beneficial strategy [4] - Deep ITM calls involve buying options with a strike price below the current trading price, providing intrinsic value, high delta, and low time decay [6] - The concept of delta indicates the relationship between the option premium and the underlying asset, with higher delta suggesting a closer price movement to the underlying asset [8]