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Barchart
Barchart
Mark R. Hake, CFA

FOUND: Nvidia stock may be oversold what is the best nvda play - You Need To See This

Nvidia, Inc. (NVDA) stock may be deeply oversold after its earnings release last week. It could be worth over 50% more, using an FCF valuation, as shown in my Feb. 27 Barchart article. Two plays: sell short OTM one-month puts for a 3% yield; buy ITM calls six months out.

NVDA closed at $177.19 on Friday, Feb. 27, down from the pre-earnings Feb. 25 peak of $195.56, but still higher than a recent trough of $171.88, although its six-month low is $167.02 on Sept. 5.

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