How To Earn 11% On NVDA Stock And Set A 30% Safety Net

Get paid a healthy income now for a chance to own the AI leader at a price well below today’s, an income you keep whether the stock soars or sinks.

NVIDIA (NVDA) shares are trading around $218.99, having underperformed the S&P 500 over the past year but still posting strong gains in recent months. For investors eyeing the AI titan but wary of its high-flying price, one options strategy offers a strong alternative to simply buying shares today: getting paid a healthy income now to agree to buy the stock at a significant discount, but only if it drops to that lower level.

11% annualized yield at a 30% margin of safety, by selling put options.

• Sell a put option on NVDA expiring 9/17/2027, with a strike price of $155.
• Collect roughly $988 in premium per contract (each contract covers 100 shares).
• That works out to about 5.7% annualized on the $15,500 of cash you set aside to secure the trade.
• Park that cash in a money market or savings account earning roughly 5.0%, and your total yield climbs to about 10.7%.
• And if NVDA falls below $155, you buy it at $155, an effective entry near $145.13 a share after the premium, about a 34% discount to today’s $218.99.

Both Outcomes Put Cash In Your Pocket

If NVDA stays above $155 through 9/17/2027, the put expires worthless, and you simply keep the full $988 premium. That is about 6.4% on the $15,500 you set aside over 407 days, while that same collateral keeps earning the ~5.0% money-market yield on top for the ~10.7% total above. You never buy the stock and keep the income, free to do it again.

If NVDA closes below $155, you are assigned and buy 100 shares at $155. The $988 premium you already pocketed lowers your effective cost to about $145.13 a share, roughly a 34% discount to today’s price, though if the stock has fallen further by then, you would be holding a paper loss.

So what happens if NVDA really does close below $155, and you are the one buying? Then everything rests on a single question.

Would You Be Happy To Own NVDA Down Here?

So, would you be comfortable owning this business if you get it at a discount? The case for NVIDIA is built on staggering momentum. The company just delivered what management called “an exceptional quarter,” with total revenue of $82 billion, up 85% from the year before, and record free cash flow of $49 billion. Its Data Center segment, the engine of its growth, saw revenue climb 92% year-over-year to $75 billion, powered by what management called the “fastest product ramp-up in our company’s history” for its Blackwell architecture.

And the company isn’t standing still. It’s already pushing into its next major market with the Vera CPU, which management claims “opens a brand new $200 billion TAM for NVIDIA, a market we have never addressed before.” The company sees “visibility to nearly $20 billion in total CPU revenue this year” from this new initiative, suggesting a powerful second act beyond its GPU dominance. For a deeper look into the company’s core drivers, it is worth considering what you are actually underwriting in NVIDIA stock.

But that relentless pace is also the source of the risk. The very thing that could push the stock below your entry point is the immense challenge of executing at this scale. The next platform, VeraRubin, is already on the horizon, and when asked how its ramp would compare to the current one, management was cautious, stating it is “a little early to say.” Any hiccup in this annual cadence could break the narrative. This operational pressure is compounded by a confirmed headwind: the company is now building its outlook with zero contribution from China’s data center market, a significant variable removed from the growth equation.

This trade pays you to wait and see how that high-stakes execution plays out, all while giving you a substantial margin of safety from today’s price. You keep the income no matter what happens. The one thing to watch is the launch of that next platform. Management has said production shipments of VeraRubin are on track to begin in the third quarter, and the smoothness of that ramp will be the clearest signal of whether the growth engine can maintain its incredible pace.

Wondering whether another stock offers a better yield, or what this same trade would pay on a name you already like? You can screen the latest cash-secured put yields across the market for yourself. And if it is exposure to technology as a whole you want rather than this one name, a technology ETF like VGT covers that single sector. Going broader than any one sector, to a quality-first mix across the whole market, is where the portfolio below comes in.

One Trade, Or A Whole Engine

A put like this can pay you a healthy yield and hand you a quality stock cheaper than today if it dips. What it cannot do is diversify away the risk of leaning on a single company. The premium is attractive precisely because something can go wrong, and on one name, sometimes it does.

The Trefis High Quality (HQ) Portfolio spreads that risk across about 30 quality businesses, each weighed on the full sweep of its fundamentals rather than a single trade and sized and re-balanced with discipline. It has a track record of outpacing a benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. Use the put for income and a cheaper entry; let the portfolio carry the long game.