Nvidia Earnings Are Due Next Week. Here's One Possible Options Play.

This spread recently traded for around 45 cents a share. That means a trader selling this spread on a 100-share contract would receive $45 in option premium. Meanwhile, the maximum risk is $205. That represents a 21.95% return on risk between now and the end of next week if Nvidia stock remains above 177.50. Further, if Nvidia stock closes below 175 on the expiration date the trade loses the full $205. The break-even point for the bull put spread is 177.05. Traders calculate that as 177.50 less the 45 cent ...