Nvidia · Broadcom · Tesla · Intel · Meta · AMD · CNBC Technology
Bet on an Nvidia rally, and do it on the cheap, with this strategy, according to the charts
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Few stocks capture the imagination of investors the way Nvidia (NVDA) does.
Key facts
- With Nvidia trading around $183.60, a May 8 call option with a strike price of $200 costs $1.35
- The numbers alone are impressive: up more than 1,200% since October 2022, now the largest component in the S & P 500, and the only stock with a market capitalization above $4 trillion
- By comparison, NVDA CallDex topped 200 in March and August 2024, hovered above 125 in November and was still over 100 as recently as February 2026
- NVDA CallDex has recently collapsed to 55, marking its lowest reading since the end of 2021
Summary
The numbers alone are impressive: up more than 1,200% since October 2022, now the largest component in the S & P 500, and the only stock with a market capitalization above $4 trillion. Yet, even after this historic run, Nvidia trades at a forward price-to-earnings ratio of roughly 22, shockingly reasonable given that it's leading the largest technological transformation in decades, the artificial intelligence revolution, while still growing earnings per share by 60%. Today, Nvidia controls 85% of the market for AI accelerators, the chips that handle the specific demands of machine learning.
If Nvidia rallies, a trader might sell the call option and book a profit before expiration even if shares don't reach that breakeven level. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES.