Rocket NVDA Debit Put Spread 11-16-22
Buying a put spread looking for NVDA to trade lower for earnings. NVDA is trading about $159.75.
We are buying a $155-$145 put spread for about $2.50.
Risking $2.50 to make $7.50 if it trades lower.
Buy the $155 Put Expiring Nov 18th
Sell the $145 Put. Expiring Nov 18th
This results in a net debit (cost) of about $2.50. This is an out of the money option trade so keep your risk in place as it is a low probability trade by nature.