I was looking at the option chain of NVDA, to hedge my portfolio. Current P/E, P/S and most metrics point to stellar growth expectations. If that's the case, why is $200 Call for June 2026 priced 'just' at $15. $240 Call (double of current price) is trading at $10.
NVIDIA Corporation (NVDA) Options Chain – Yahoo Finance
It's an almost certainty that NVDA should double in next 18 months, or even sooner. So why wouldn't someone just get this option for $10, and free up his $110 capital for something else?
I know, the option can become worthless if price stays below $240. But if I am getting into something as volatile as NVDA, I'm looking to 2X my capital; and not 'normal' 20-30% gains. So, isn't it better to just “throw” $10 at NVDA option, if the end-result is basically the same as investing $120 in it?
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