300% Upside? His Bullish Nvidia Options Trade Explained

Overview

Ravish Ahuja described two bullish trades on Nvidia (NVDA) following a pullback in technology stocks. His thesis was that Nvidia could recover toward $240 ahead of its next earnings report. He noted that the stock had often risen before earnings and fallen afterward.

He cited a supply and support area around $215, a level near $200 that had held in recent months, and a recent all-time high of $242.

Trades Discussed

Short December $190 Put

Ravish described this as a LEAPS put opened after volatility rose and Nvidia fell. He said he received about $1,915 in premium, with approximately $1,900 in Reg-T buying-power use—which he characterized as roughly a 100% return on buying power over a year. The put was around 26–27 delta. With nearly $20 of credit, he estimated an effective breakeven near $170.

• If NVDA returned to $240 and volatility declined, he estimated the position might gain 40–50% in one to two months. It was already up about 5% when discussed.
• He was comfortable owning shares around $170, which he described as a low for the prior year. From $170 to the historical high of $242, he cited about 46% upside.

November 20 $230/$240 Call Debit Spread

Ravish bought the spread for about $220 while NVDA traded around $215–$216. The spread has a $10 width and a stated maximum potential profit of $780, or more than 300% of the debit. He said it was already nearly 30% profitable after the stock rose about $3, and suggested it could gain more than 100% if NVDA reached roughly $235.

The subtitle calls this a “bull put spread” at one point, but the described legs—buying the $230 call and selling the $240 call for a debit—make it a bull call spread.

Trading Approach and Risk Management

Ravish uses several options strategies, including short puts, delta-neutral double calendars, and double diagonals. He said call calendars had recently worked better for him than double calendars, while put calendars had detracted in bull markets.

For higher-confidence trades, he prefers longer expirations, price-based setups, and strikes at which he would be comfortable owning the stock. For short puts, he often selects roughly 20–30 delta.

His stated profit target for the short put was about 40%. Given his view that NVDA often falls after earnings, he might close or reduce risk at 25–30% profit before earnings. If NVDA stayed above $170, he said he would generally hold. If it fell to $170—or if fewer than three months remained until expiration—he might roll the position to the following year and potentially down to a $150 strike. He noted that margin use might leave him without enough capital to take assignment.

For call spreads, he typically sells half at around 100% profit and may hold the rest toward 200%. If gains arrive quickly, he would consider taking profits sooner because of pullback risk. He emphasized keeping the call spread small: it could lose the entire debit, and he sizes it so a total loss would not materially affect his portfolio. He warned that such spreads can lose 40–50% before later recovering, or expire worthless.

Market Context and Cautions

Ravish attributed some market difficulty to the Federal Reserve’s interest-rate hiking cycle. He said he would wait for the next FOMC meeting before deciding whether to increase or reduce portfolio exposure. His positions were small, and he was avoiding large positions until there was more clarity.

Another panelist expressed caution about the next 30–45 days. Mark said selling a long-dated put on an individual stock was not his preferred approach: he viewed it as largely long beta, with capital and risk/reward considerations, and said he mainly traded indices. He acknowledged that the setup could suit someone with a structural bullish view.

Assets and Instruments Mentioned

• NVDA (Nvidia): Shares, short put, and call debit spread
• META (Meta): Referenced as an example of a trade that was down about 25% before later showing a 70% gain; the quoted price levels in the subtitles are unclear
• VIX: Said to have fallen slightly
• Options strategies: LEAPS puts, short puts, call calendars, put calendars, double calendars, double diagonals, and bull call spreads
• Macro references: Federal Reserve interest-rate cycle and FOMC

Presenters and Sources

• Ravish Ahuja: Options trader presenting the trades
• Mark: Panelist and commentator
• Theta LIVE / Theta Profits: Program and channel

Disclaimer

Not financial advice; do your own research and trade at your own risk.