$NVIDIA (NVDA.US)$Still the undisputed leader in the AI revolution, driving current and future AI models by providing powerful computing capabilities. Recent Earnings Reports exceeded expectations, demonstrating excellent performance in major core areas, and currently, NVIDIA's valuation appears attractive compared to its peers.

FromTechnical aspectThe pullback after the Earnings Reports provides a good entry point for Call trading with solid risk/reward potential. Notably, NVIDIA's stock price dropped another 3% on Wednesday. According to the NVDA stock price chart, it has recently pulled back to $136.ResistanceThis critical area had previously been an important Resistance level. Despite the pullback in stock price, it is still on an upward trend, outperforming the S&P 500, and the relative strength Indicators remain strong.

This pullback provides an opportunity to increase call options positions, especially as momentum indicators stabilize, suggesting a potential resumption of the previous uptrend. It is expected that in the coming weeks, as investor confidence recovers, the stock price may reapproach the resistance level near $156.

NVIDIA's earnings reports demonstrate its leading position in the fields of AI and accelerated computing. The Blackwell GPU has entered full-scale production, with revenue reaching a record $35.1 billion, representing a 94% year-on-year increase. Among them, the Datacenter business is the pillar of NVIDIA's growth, with revenue of $30.8 billion, up 112% year-on-year.

nvidia's current pe is 33 times, which is higher than its peers, but considering its projected eps growth of 64% and revenue growth of 56%, this valuation is understandable. In contrast, the median growth rates of the industry are 13.7% and 6.7%. nvidia's 56% net income margin far exceeds its competitors, further proving the reasonableness of its high valuation while still offering considerable upside potential.

To leverage nvidia's strong fundamentals and technical resistance, consideration can be given to buying a options strategy combination with expiration on January 17, 2025, with strike prices of 136 dollars/156 dollars for call options at a price of 6.04 dollars.

Trade details:

Buy 1 call option expiring on January 17, 2025, with a strike price of 136 dollars, priced at 8.4 dollars;

Sell 1 call option expiring on January 17, 2025, with a strike price of 156 dollars, priced at 2.36 dollars;

Maximum loss: $604;

最大盈利：1396美元；

盈亏平衡点：142.04美元。

Before the expiration date, as long as the price of nvidia stock is above 142.04 dollars, this strategy combination is expected to profit, with the maximum profit occurring when the price of nvidia stock exceeds 156 dollars. This trade offers a 2:1 risk-reward ratio, providing investors with a favorable way to participate in the anticipated rise of nvidia while limiting downside risk.

最后值得注意的是，期权交易存在较大风险，有可能亏蚀本金。对于期权新手来说，建议在充分掌握相关知识后再谨慎参与交易。

How to easily navigate technology stock options? Futu's options tools can help you!

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Risk Warning

Options are contracts that give the holder the right, but not the obligation, to buy or sell an asset at a fixed price on or before a specific date. The price of options is influenced by various factors, including the current price of the underlying asset, the strike price, the expiration date, andImplied Volatility。

Implied VolatilityReflecting the market's expectations for the future volatility of options over a period of time, it is data derived from the option BS pricing model, generally considered as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay higher prices for options to help hedge risks, thereby leading to higher.Implied Volatility。

Traders and investors use Implied Volatilityto evaluateoption pricesAttractiveness, identifying potential mispricing, and managing risk exposure.

Disclaimer

This content does not constitute an offer, solicitation, recommendation, opinion, or guarantee of any securities, financial products or instruments. The loss risk of buying and selling options could be substantial. In certain circumstances, you may suffer losses exceeding the amount initially deposited as margin. Even if you set up backup instructions, such as stop loss or limit instructions, losses may not be avoided. Market conditions may render such orders impossible to execute. You may be required to deposit additional margin in a very short period of time. If the required amount cannot be provided within the specified time, your open contracts may be closed. However, you are still responsible for any shortfalls in your account arising from this. Therefore, before buying or selling, you should research and understand the options, and consider carefully whether such trading is suitable for you based on your financial situation and investment objectives. If you buy or sell options, you should be familiar with the exercise of options and the procedures at expiration, as well as your rights and obligations when exercising an option or at expiration.

Editor/Rocky