The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on NVIDIA (NVDA) today after it closed at $158.28 on Dec 6, 2018.
For more conservative investors, look at a covered call using the Jan 18, 2019 $155 call for a net debit of about $145.34. This trade will return 6.64% (57.76% annualized, for comparison purposes only) as long as the stock closes above $155 at expiration. NVIDIA can fall 8.18% before causing a problem.
For investors with a higher appetite for risk, consider a diagonal spread with a Jan 17, 2020 $70 call taking the place of the long stock position and the same short position in the Jan 18, 2019 $155 call. This trade only costs about $79.60 to get into and the rate of return increases to 6.78% (57.76% annualized, for comparison purposes only) but the downside protection falls to 5.48%.