Get Paid 10% To Buy NVDA At A 30% Discount, Here’s How

At about $207.83 a share, Nvidia (NVDA) is trading near its 52-week high.

Do you think NVDA stock is a good long-term bet at current levels? What about at a 30% discount at about $145 per share? If you think that is a steal, and have some cash ready to go, here is a trade.

10% annualized yield at 30% margin of safety, by selling Put Options.

• Sell a long-dated Put option expiring 6/17/2027, with a strike price of $145
• Collect roughly $1,005 in premium per contract (each contract represents 100 shares)
• That’s about 6.2% annualized yield on the $14,500 you’re setting aside for the possibility of buying the stock
• This cash parked in a savings or money market account will earn an extra 4.0%, taking total yield to 10.2%
• And you give yourself a chance to buy NVDA stock at deep discounted price of $145

Possible Trade Outcomes: You Win Either Way

Stock Price Outcome: What It Means For You

NVDA stays above $145 – You keep the full $1,005 premium – which is 6.9% extra income over the next 407 days on cash that might otherwise earn you 4.0% or less. You never buy the stock and simply walk away with the cash.

NVDA closes below $145 – You’ll be obligated to buy 100 shares at $145. But thanks to $1,005 premium, your effective cost basis is just $134.95 per share – a roughly 35% discount from the current level.

And you won’t be buying just another speculative stock. Nvidia makes the most sought after accelerators for the AI space and has customers locked in with its software ecosystem. In fact, sales are projected to grow by about 71% this year, with per share earnings projected to grow marginally faster. The valuation set up is also reasonable, with the stock trading at under 19x next year’s earnings.

But to hold this trade with conviction, you want to better understand what’s going well for NVDA stock and how low it has fallen in the past.

AI demand is also spreading beyond cloud data centers into edge devices like smartphones, PCs, and automotive systems. That shift is creating new opportunities for companies, such as Qualcomm (QCOM), tied to on-device AI processing. See how Qualcomm stock can 2x

Complementing Your Active Trades

Executing a cash-secured put on NVDA is a highly efficient way to engineer yield and optimize your entry point. It is a sophisticated play for active investors. But sustainable wealth building also requires a passive, structured engine.

For investors looking to complement their active trades with a hands-off compounding vehicle, the Trefis High Quality (HQ) Portfolio is the solution. It is engineered to capture market upside across 30 high-conviction stocks, and has delivered over 105% in cumulative return since inception.