NVIDIA (NVDA) To $300? Here's Exactly How I'm Trading It
390 segments
What if I told you that despite Nvidia
already being worth trillions of
dollars, I still think there's more room
to run. And I see the stock going to
$300 per share. So, I think a lot of
investors right now, they're looking at
Nvidia, they think that they missed it.
They think that the stock is kind of
gone, but that's very far from the
truth. Honestly, we are still in the
early innings of AI, and Nvidia has a
lot more room to run. I look at Nvidia
and see a company that still benefits
from one of the biggest technology
spending cycles in all of history. So
today I'm going to explain to you first
of all why Nvidia deserves to be $300
per share and then the two option
strategies that I'm doing on it. I think
the option strategies that I'm going to
show you will be very simple, very
boring. You might not want to stick
around, but simple and boring stuff is
what works and that's what I'm a really
big fan of. I'm a fan of consistency and
stability. So let's first of all talk
about Nvidia and then I'll show you the
two option strategies that I'm using on
Nvidia to generate income. All right. So
for starters, most people think that AI
has already happened and um honestly
chat GBPT just launched like four years
ago guys. I know things are changing
very fast but Chat GPT is 4 years ago
with their launch and Nvidia is still in
their growth stages. So most companies
they still don't really have AI
integrated into workflows and during the
gold rush you guys know like I made this
example before but the people digging
for gold were not the ones winning. I
mean some were but majority weren't. And
the people that were actually winning
were picks and shovels and Levis's
jeans. I mean, people had to go work and
they were wearing jeans. That was the
style back then. So, digging for gold
can work, but selling picks and shovels
works a lot better. And that is what I'm
seeing here with Nvidia. That's not a
secret. That's not new. Everyone talks
about that. But there is a simple way to
just generate income. And I think with
fairly low risk, it's just selling
options. Both selling put options and
covered calls. So if you look at the
spending from Microsoft which is
billions of dollars and Amazon, Google
and Meta, they're spending billions of
dollars and they're buying chips and
Nvidia is supplying the entire industry.
So as long as this continues, which I
know there's doubters saying that it's
not going to continue, but I'm pretty
sure it will continue. AI is a very
important part of the future. It's very
important for productivity and there's
just many reasons that it's going to
continue. I'm not going to go down the
rabbit hole. Do your own research, but
right, AI spending is only going to go
up. So, a big reason that I believe that
Nvidia will eventually reach 300. It's
not really of, you know, if it's going
to reach 100, it's really just when when
will it reach $300 per share is because
investors are focused on today, but
really you should be focusing on
tomorrow. So, where is Nvidia headed? Is
revenue growing? Right? It's growing
tremendously. And Blackwell is driving
that demand today. So, companies are
spending billions, literally billions to
build out AI infrastructure. And
Blackwell chips help with training and
they run large AI models for efficiency.
And that's going to be very important.
So the the story really isn't stopping
here. The story is only continuing and
Nvidia already has Reuben coming next.
So followed by future architectures
after that. So we have a step-by-step
plan for Nvidia to reach higher and
higher revenue which will make sure that
the stock continues to grow in the long
term, right? We're probably going to
reach $500 per share eventually. This is
going to be a 10 trillion company. Just,
you know, will it be 10 trillion in 2030
or 2035 or the heck 2028? That is
uncertain. But as an option seller, you
don't really have to be certain on the
stock price to just sell options and and
collect income. I mean, that's what I've
been doing for the last 10 years. So, I
want to go through the step by step
here. I'm going to show you kind of like
the entry. Nvidia over the last like one
month here is down and a lot of
investors are upset. But I'm not upset.
I'm I'm actually happy because I'm going
to go to trade invidia options. I'm
going to show you why I'm happy. First
of all, when a stock goes down, that's a
good thing because it's becoming
cheaper, right? I get that we build
wealth when stocks rise and they
skyrocket, but they don't have to
continuously do that to build wealth. In
fact, every pullback is healthy and then
every pullback is an opportunity. So,
you know, when you get in during the
pullback, that's where you really build
wealth. It's like growing your muscles,
right? You don't grow the biceps and the
triceps in the gym. You grow them when
you are resting. And the same thing is
kind of true for stocks. You don't
really you do grow when they skyrocket,
but you also grow when they pull back
and then you buy during that pullback.
Okay? So, let me show you kind of how to
get paid to buy during a pullback. Okay,
I'm going to go for an expiration date.
I like selling monthly options. I know a
lot of people, they want to do weekly
options. In my Discord community, I do
weekly options, but I like monthly
options even more because a monthly
option is a lot less work to manage. And
my whole goal is just passive income.
That is my goal with option trading. My
goal is stability. I want it to be
passive income and I don't want to take
on a lot of risk. Then, that's not the
best for me. the best would be something
more consistent and stable. So, what I'm
looking at is just selling a put option.
I already have a put option at 200 here.
It's actually going really well and I'm
going to show you kind of what this
looks like at a $200 strike price. The
reason why I'm picking 200 is first of
all, I think Nvidia has great support at
$200 per share. And it would be amazing
because when you sell a put option, you
essentially get, you know, assigned if
it's below 200. And what better than
going from 200 in terms of your average
price to a price target of 300? That's
kind of my goal with this trade.
Longterm, it's going to take time and
obviously I'm not a financial adviser.
It might take 6 12 months. It might take
more than that and there is a risk that
um it goes well below 200, but I'm not
really concerned. I'm not concerned
because Nvidia has so much going for it
and it has a low PE ratio, a low forward
PE ratio, excuse me. So, I think this is
really a value stock going forward. So
when I look at the $200 strike price
with a delta.39, that means that there's
basically like a 39% chance of getting
assigned. Okay, that means there's a 39%
chance of this happening and a 61%
chance of this not happen. So really
there's only two things that can happen.
If Nvidia is above 200, 770 is mine. I
mean, that's money in the pocket. Money
in the pocket, right? And cool. If it is
and then nothing happens, right? And
then the next Monday after July 17,
which would be July 20th, I would just
sell another put option. Simple as that.
Rinse and repeat. But if it is under
$200, then I will get assigned. So early
assignment really doesn't happen all
that much. It doesn't make sense for the
person exercising the option. So don't
be too concerned. Also, you should be
cash secured, meaning that you have the
cash to take assignment if you get
assigned. Right? So this example, that
would be $20,000. Now, I'm going to show
you a cheaper strategy as well, but
selling puts would be $20,000. So, you
got to have some money to make money in
selling puts. The other strategy I'm
going to show you will be riskier
strategy, but it will require less
money. Okay? I'm actually going to show
you how to turn a put option into a put
credit spread. So, we'll go over that in
just a second. So, a $200 put option,
basically the endgame, the management
strategy here is there is not too much
to manage. You sell the position. If
Nvidia is above, great. If it's below
200, you should want to get assigned.
Okay? Because great stock, great price,
and my price targeted 300. So, if I get
assigned at 200, amazing. I still get
the premium. And actually, that's that's
even more amazing because my average
cost is going to be $19,230,
right? Or 25 roughly. If I collect 770,
it'll be 19230. So, essentially, if I
get assigned, my average cost will
actually be lower than the strike price.
And that's just because I'm accounting
for the premium that I collect. Okay,
you want to account for premium
collected in your average cost. So, you
can technically get your average cost
lower and lower and lower. And I mean,
if you keep selling put options, your
average cost will continue to go down,
right? So, if I sell a 200 put, I don't
get assigned and I collect 770 and I do
that again at 200 and I don't get
assigned again for, you know, 10 bucks,
then I'm already up $17.70.
And I would, you know, lower my average
cost to, you know, it would be like 182
and 30 cents, something like that,
right? So that is what I really like
about selling put options is if it
happens, great. I get a good quality
company that I like. If it doesn't
happen, then I have collective premium.
This is what I really love about option
selling is because I'm really chasing
income. That's what I want. Uh I know a
lot of people want fast growth and I
think that you can achieve good growth.
You won't get rich fast, but I'd rather
get rich kind of slower and more
predictably rather than, you know, going
for high-risisk plays and and
experiencing a bunch of volatility. Sign
me up for slow and steady, basically,
right? This that's what I teach in my
program. That's what I like to do.
That's what I help other people do as
well. Okay, so this is like the first
strategy. The second strategy is a put
credit spread. A put credit spread is um
a little bit different. Okay, it's kind
of similar in the way because I can
actually keep this $200 strike price. I
don't have to do anything. All I have to
do now is buy a put option to kind of
protect my downside. Okay, so if I buy a
190 put option here, in this example,
this would be a 200 and 190 put credit
spread where the 200 is sold, the 190 is
bought, and a put credit spread is
created. In this case, there is a Simon
risk, but that's not really the concern
here because you will be closing out
this trade on the last couple of days if
it's between the two strike prices
because then you have a you do have
assignment risk and if you don't have
the money to do it, you're not in a good
situation. The broker will most likely
close you out though if you don't have
the cash. But the real real concern here
is not necessarily the assignment risk.
It's more so if Nvidia were to come down
to 190, you're not taking assignment.
you're not going to get 100 shares
because a put credit spread is not for
acquiring the stock. It's to really bet
that the stock won't go below the strike
price that you choose. And if it goes to
190 or lower, you will lose 100% of the
collateral. Now, the collateral here is
pretty nice because it's not too much.
Okay, the collateral here is $660.
Okay, that is the collateral. And the
reason why it's 660 is because the
difference between 200 and 190 is
$1,000. But the premium generated here
is 340. Okay. So instead of risking a
th00and you're risking 660. So
essentially you see your risk and your
return here. Okay. Your return in this
case would be 340 on this trade example.
And 660 is the maximum loss that you can
lose on this trade. Okay. So I find this
to be a very attractive strategy to use
part of your portfolio. Obviously
diversify and understand risk
management. That is something I do cover
in my videos. You know I'm not a
financial adviser. Take this as
educational purposes only. Very
important to understand how to diversify
in your portfolio. This is a risky
position. However, I have found
personally that this has worked um very
well and you know about 5% of my
portfolio in terms of diversification. I
use 5% of my money for put credit
spreads. Okay, I'm comfortable with
that. I think that uh more than that is
probably a bit uncomfortable, but this
has been a strategy that I have used.
And as you can see here, I mean, if I
had a, you know, let's say that I have a
$100,000 portfolio and then I use $5,000
of it and that $5,000 portion I can grow
to, you know, 7K, 8K, 9K, 10K, and and
so on and so forth. To me, it makes a
lot of sense to use smaller amount of
capital because the strategy is riskier,
but then to use it as more of my
aggressive capital that I'm trying to
kind of take on to to bigger goals. So,
kind of like a combination. This would
be more small account focused with a
small amount of capital. And then just
selling a put option would be more big
account focused where you could put
bigger money in place because
essentially when going back to selling a
put option, selling a put option is is
kind of similar to stock because if you
get assigned now you have the stock. So
you don't need to do too much other than
hold the stock because I think Nvidia is
going to be a $300 stock. From there on
you just really buy and hold. Okay. So,
if you are new to option trading, I want
to summarize kind of what a sell put is
and a put credit spread. So, a sell put
allows you to generate income while
waiting for the stock to go down. The
risk is assignment, but that risk of
assignment isn't a big deal if you want
to own the stock anyways. The strategy
can reduce your cost basis, meaning that
you acquire the stock for less than the
strike price. And also, if the strike
price is less than the stock price,
which it is, right? I mean, in in
Nvidia's case, Nvidia is at 206. So if I
go for 200, my strike price is lower
than the stock and then my average cost
if I get assigned is even lower than
that, right? So I'm getting a really
really big benefit. At Goldman Sachs,
many investors were using selling puts
and this was pretty much a core strategy
that a lot of big fish were using. Uh
the big fish actually do really simple
stuff. So a lot of people think that
hedge funds and private wealth
management and you know Goldman Sachs
and Wall Street is using complicated
strategies. Some are, but to be honest,
if you're a beginner, if you're learning
option trading, then sticking to the
basics can do very very well. I'm just
doing majority basics in my portfolio. I
am using some LEAP options, which I have
a video on YouTube here. I'll I'll leave
you kind of my playlist of courses that
I have made. I made a course this year
on LEAPS, on covered calls, and on
selling puts. These are really the core
strategies that you should be using if
you're looking to generate income and
build wealth using option trading. So,
I'll leave the videos for you here. Make
sure that you subscribe and I hope that
you enjoy this simple process to what I
am doing within video.
Ask follow-up questions or revisit key timestamps.
This video presents a bullish case for Nvidia stock, arguing that it still has significant growth potential in the long term, with a price target of $300 per share. The speaker outlines why AI infrastructure spending remains a strong driver for revenue and demonstrates two income-generating option strategies: selling cash-secured puts and utilizing put credit spreads. These methods focus on consistency, stability, and passive income generation rather than speculative, high-risk trades, making them suitable for different account sizes and risk tolerances.
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