Core Insights - Nvidia is set to report earnings on November 19, with the options market anticipating an 8% price movement in either direction [1] - The stock has historically remained above the lower end of the expected range during earnings announcements [1] Options Trading Strategy - A bull put spread can be structured based on the expectation that Nvidia stock will stay within the expected range and respond positively to the earnings report [2] - The proposed trade involves selling the November 19, 177.50-strike put and buying the 175 put, creating a bull put spread [3] Trade Details - The bull put spread recently traded for approximately $0.45 per share, yielding $45 in option premium for a 100-share contract, with a maximum risk of $205 [4] - This represents a potential return on risk of 21.95% if Nvidia stock remains above 177.50 by expiration [4] - The break-even point for this trade is calculated at 177.05, factoring in the option premium [5] Market Context - Nvidia stock experienced a decline, trading near $186, prompting consideration of alternative strike prices for the trade [5] - The potential for a 21% return in a short timeframe is appealing, but the risk of losing the entire investment is significant, indicating this trade is suited for high-risk tolerance investors [6] Stock Ratings - Nvidia stock holds a Composite Rating of 99, an Earnings Per Share Rating of 99, and a Relative Strength Rating of 86, ranking first in its group according to Investor's Business Daily [7]

Group 1 - Walmart operates a vast network of discount department stores, supercenters, and e-commerce platforms, offering a wide range of products at everyday low prices [1] - The company runs Sam's Club and has expanded its digital footprint through online shopping and delivery services, leveraging its scale and supply chain efficiency [2] - Walmart has consistently exceeded expectations in its earnings announcements, maintaining a strong performance [2] Group 2 - Implied volatility for Walmart stock is currently high at 28.68%, indicating a favorable environment for option selling ahead of the earnings announcement on November 20th [3] - A bull put spread strategy is recommended for those with a bullish outlook, involving selling a naked put and buying a further out-of-the-money put to limit risk [4] - Bull put spreads provide defined-risk strategies, allowing traders to know their maximum potential loss upfront and benefit from time decay as expiration approaches [5] Group 3 - Bull put spreads are expected to benefit from a drop in implied volatility following the earnings announcement, which typically occurs [6]

Microsoft (MSFT) has seen some heavy selling in recent days but is holding nicely above the 50-day moving average. A graph on a white background AI-generated content may be incorrect. More News from Barchart Analysts maintain a positive outlook for MSFT stock with 41 Strong Buy ratings, 5 Moderate Buy ratings and 2 Hold ratings. A screenshot of a graph AI-generated content may be incorrect. MSFT BULL PUT SPREAD Today, we’re going to look at a bull put spread trade, but instead of using a regular month ...

Group 1 - Disney (DIS) is currently one of the most oversold stocks in the Dow Jones Index but is holding above the 200-day moving average while showing good accumulation [1] - Analysts maintain a positive outlook for DIS stock with 20 Strong Buy ratings, 2 Moderate Buy ratings, and 6 Hold ratings [4] - Options flow was positive with a net trade sentiment of +$101,700 and a delta imbalance of 33,763 [3] Group 2 - A bull put spread trade is being considered for DIS, which allows for adjustments over a longer-term period [6] - The maximum profit for a bull put spread is limited to the premium received, while the maximum potential loss is capped [7] - The implied volatility for DIS is currently at 23.56%, with an IV Percentile of 42% and an IV Rank of 15.30% [7] Group 3 - A potential bull put spread could involve selling the December 19 put with a strike price of $100 and buying the $95 put, trading for around $0.57 [9] - This trade represents a 12.87% return on risk if DIS stock remains above $100 until December 19 [10] - The breakeven point for the bull put spread is $99.43, which is approximately 12.37% below Friday's closing price [12][13]

Coreweave (CRWV) stock broke above the 50-day moving average on Monday and is showing positive accumulation on the breakout. One bad thing about CRWV stock is that it doesn't pay a dividend. More News from Barchart But what if we could use options to manufacture our own dividend? Does CRWV Pay a Dividend? Let's say I have $12,000 to invest into CRWV stock, I could simply buy 100 shares and hope the stock rises. But, if I want a more conservative play, I could sell a December 19, 2025 put with a strike ...