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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