How to bet against Nvidia using options if this is the top of the AI rally

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We'll review a bearish options set-up that wins if the semiconductor sector pulls back from highs.

Investors have been riveted by the AI surge over the past year, however the entire chip sector and its associated stocks are displaying signs of a potential pullback. We'll review a bearish options set-up that wins if the semiconductor sector pulls back from highs. Considering this, I'm contemplating a bearish trade on Nvidia , utilizing a bear put spread as the trade structure.

mountain Nvidia, YTD Here is my exact trade set-up: Buy $870 put, April. 12th expiry Sell $860 put, April. 12th expiry Cost: $500 Potential Profit: $500 If NVDA trades at or below my short strike by the expiration date, this trade can yield a 100% return on investment on the amount risked. With 5 contracts, this equates to risking $2500 to potentially gain $2500 -Nishant Pant Founder: https://tradingextremes.

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