Best way to bet with options on NVIDIA going down?

Selling Calls = max upside so 30% drop you'll make 100%, likely off a 10% drop, but unlimited downside.

Where as Puts opposite, 100% downside, but maybe 400% upside from a 30% drop.
 
Curious why u think NVDA will tank? The simple way is to buy ATM or Deep in the Money puts 6-7 months out.


orbit23 said:
Basically i want to short NVIDIA. Targeting 30%+ dump, probably even more, think it will dump from here(366$) to below $250.

I am pretty sure this will hapen before end of year, perhaps in the next 3 months, but it's hard for me to guess the timeframe. I think it should for sure happen by the end of year.

I only margin trade futures, so i enter, i have a stop loss and i have a price target. I know much i am risking and i know how much i am going to get.
But i have bad experience randomly shorting uptrends, i have been stopped at the exact top before. That's why i want to go with options.

Does anyone have a recommendation, what kind of options should i buy and what expiration date. But mainly my question is, how much will i be getting if right? What's the risk to reward? What strike price is best?

What's the difference if i buy puts with say 270$, 260$ or 250$ strike price? Is the pay-off bigger? By how much?
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You could buy a put spread to gain exposure to your expected scenario with limited risk, @orbit23

A Sep 255/250 would cost you 0.40 today (the Dec 255/250 would cost 0.90 today)

If you're right the value would increase towards the value of the spread (5.00, so approx 1100% profit on the Sep spread

If you're wrong, the loss is limited to the initial cost.
 
Check this one out:
BUY +1 BUTTERFLY NVDA 100 18 DEC 20 275/280/285 CALL @-.80 LMT MARK


Get paid to place the zero risk bet? -- Getting filled may be illusive!
 
I think everything will tank, not sure why i chose nvidia though.

Thor said:
No hurry, there is lots of time left.
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Totally possible that the market keeps up for longer than anticipated and then sells-off very quickly again.

SPX500 looks like a very nice top on 6M chart to me. With the second corona wave coming, which is likely to be more devastating... Not to mention the first one has not even subsided yet...

I could easily be wrong, but i find it very unlikely.

Saw some random post, not sure how credible... Saying that most market bottoms happen in October. Viruses spread most rapidly when immunity drops, which happens in autumn/winter. Not to mention the elections.

Markets fucking hate uncertainty and discount it like crazy.

We can't know for sure, but it's coming up together nicely.

Anyways i figure if you are day trading, this doesn't help you at all and any expectations or bias only hurts your performance.
That's why i want options, to accumulate some longer-term positions that i need not time perfectly in the moment.

11x return seems very lucrative, but until end of September is too much of a risky bet IMO. December seems better.
 
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