Jensen Huang’s abrupt resignation sent Nvidia’s stock down roughly 30% since Oct. 6 amid uncertainty over the company’s leadership. Despite the decline into the $160s, Nvidia’s underlying fundamentals remain largely intact, including its GPUs, CUDA software ecosystem, and networking expertise. Implied volatility has risen sharply and is expected to remain elevated for several months, increasing the premiums available to option sellers. The proposed strategy involves buying 100 Nvidia shares and selling one Dec. 18 call with a $185 strike price, generating additional income while limiting upside participation. If the stock trades sideways or recovers gradually, the collected premiums lower its effective cost basis, while further downside would be partially offset by the income earned.
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