Ok, the NVDA stock split finally happened.
But the real story wasn’t about the stock — it’s about how much cheaper the options are now that the stock has split.
Here’s one important thing to know: If you’re an options seller, you can always find which option yields the most by doing some simple math.
Just take the price of the call option you want to sell and divide it by the price of the stock.
My students and I did some covered calls on Nvidia after the split, and the results were pretty lucrative.
Here’s what I want you to do: take a look at Nvidia’s stock, find some options that expire above the current price, and that expire on July 26th.
Then, take the price of that option, divide it by the price of the stock, and BAM!
You’ll know what your percentage yield would be.
So if you’re selling the July 26th 135 Call for $2.75 and you bought NVDA at 121, here’s how that math works out:
2.75 / 121 = 2.27%
Nvidia has some of the highest-paying options right now. This is what I was talking about all last week in this article and this one.
When this split happened, the big play wasn’t about the stock itself; it was about the options.
That’s where the real action is. Selling those options can be incredibly profitable.
So, do the math. Just a tiny bit of math can prove it to you.
This is what you want – the high yield, the smart plays. Remember, what I said the other day: fortune favors the bold.
And in this case, being bold means diving into those Nvidia options and making the most of this split.
If you want to see what me and my students are doing with NVDA, check this out.
Trade well,
Jack Carter
