English
Back
Download
Need Help?
Log in to access Online Inquiry
Back to the Top

💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?

avatar
Options Hunter wrote a column · Oct 6 17:13
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
Hey traders! 🚀
This week’s 52-week high watchlist features Nvidia ( $NVIDIA (NVDA.US)$ +$0.09 → closing $188.89 last Friday) — the AI powerhouse that keeps redefining tech innovation 🤖.
While many traders are chasing the rally, I’m setting up a Diagonal Put option strategy — a smarter way to buy into strength, manage risk, and stay ready for short-term dips. This is a replicable option strategy that can be done even for broader index like $SPDR S&P 500 ETF (SPY.US)$ , $Invesco QQQ Trust (QQQ.US)$ or mid to small cap stocks to buy on pullbacks in the semiconductor ETFs like $iShares Semiconductor ETF (SOXX.US)$.
New to My Community Profile - Options Hunter?
If you’re new or curious about how I plan trades and structure options strategies, my detailed cheatsheet has all the details. Check it out for a full breakdown of my process:
🧠 Trade Thesis
1️⃣ Seasonal Edge — October Bullish Bias
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
Source: Tradingview.com
October has historically been a strong month for NVDA:
– Average gain: +5.54%
– Win rate: ~70% over the past decade
– Standard deviation pullback: $188.53 - $14.52 = $174.01 (selling the $170 put)
– Often the launchpad for Q4 rallies leads to earnings together with the magnificent 7 in tech sectors ( $Invesco QQQ Trust (QQQ.US)$ ) like $Tesla (TSLA.US)$, $Microsoft (MSFT.US)$, $Alphabet-C (GOOG.US)$, $Netflix (NFLX.US)$, $Meta Platforms (META.US)$, $Apple (AAPL.US)$, $Amazon (AMZN.US)$.
– That means: small pullbacks can be buying opportunities, not panic moments.
2️⃣ AI & Data Infrastructure Catalyst 💾⚙️
While other AI or semiconductor stocks (like $Advanced Micro Devices (AMD.US)$ , $CoreWeave (CRWV.US)$ , or $Broadcom (AVGO.US)$ ) benefit from AI hype with recent rise, Nvidia leads the pack in data center and infrastructure adoption with strong relative strength in this sector:
– Partnering globally on high-performance GPU clusters (AI cloud, data centers, and supercomputing). https://openai.com/index/openai-nvidia-systems-partnership
– Major deals like Ooredoo Tunisia adopting Nvidia’s AI-as-a-Service platform 🚀. https://www.datacenterdynamics.com/en/news/nvidia-and-ooredoo-to-provide-ai-hardware-to-data-center-clients-across-the-middle-east/
– Dominant supplier in the AI server and GPU ecosystem, capturing market share from smaller or mid-cap chipmakers. https://technologymagazine.com/articles/nvidia-predictions-ai-infrastructure-set-to-shift-in-2025
This leadership continues to make NVDA the benchmark name in the AI + data infrastructure cycle.
3️⃣ Decade of Outperformance with Long Term Sector Growth Prospect🌟
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
Over the last 10 years, Nvidia stock has surged +29,740.16%. 💡 If you had invested $10,000, it would be worth about $2,984,016 today.
That’s why NVDA remains a core leader among mega-cap growth stocks — every pullback so far has turned into another long-term base for new highs.
As part of S&P500, it still leads with the annualised return behind TSLA and AVGO based on last 30 years stats:
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
🧩 Technical Analysis - Key Levels
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
– Support: $170 / $160 zone
– Resistance: $190 → $200 (52-week high range)
– Next earnings: ~44 days away (mid-November catalyst)
– Next profit target: Based on consensus rating, profit target is between $218.24-$250 (or an average $210 target)
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
🔍Option Strategy: Diagonal Put Spread
🎯 Goal: Ride NVDA’s long-term uptrend while earning income and protecting against short-term dips.
🧾IV Review
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
Right now, IV is higher than HV. With an average 1 month view, time decay is helping, and volatility is still high even after the rally. This keeps the premium decent if we stay in this range. No complaints—options selling has its volatility edge.
💰 Strategy Logic
– The short $170 put NVDA 251031 170.00P collects premium while NVDA trades strong — you can take 50% profit early or roll forward if NVDA holds above $180.
– The long $140 put NVDA 251114 140.00P acts as insurance in case of short-term selling or institutional profit-taking:
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
– Compared with a naked short put, this setup uses less buying power and provides built-in downside protection.
💻 NVDA | Nvidia 52-Week High Breakout with Broad Market Support | Put Diagonal Option Setup Instead of Selling Put?
🧾 Options Expiration: Sell put at October 31, 2025 (25 DTE) and buy put at October 14, 2025 (39 DTE)
💰 Max Profit: ~ $174.24⚠️ Max Loss: ~$2869.25 per contract (prepared to be assigned shares 'buying the dip' if price break below $170 strike price and close buy leg for profit)🎯 Breakeven: ~ $168.192
✅ Pros
– Generates income while staying bullish long-term
– Safer than a naked short put
– Allows roll flexibility and time-decay advantage
– Fits well with bullish seasonality
⚠️ Cons
– Limited profit if NVDA drops too sharply
– Needs active management for the short leg
– Temporary IV spikes can impact margin
🧭 Summary
– Trend: Bullish continuation toward $200+
– Seasonality: October historically strong 📈
– Catalyst: AI & data infrastructure leadership keeps NVDA ahead of peers
– Strategy: Diagonal Put → “Get paid while waiting for dips”
– Plan: Take 50% profit, roll forward, or accept share assignment for long-term hold
🧠Thoughts?
How about you? Are you already in the ride with options or stock for NVDA, or waiting for the best timing?
Comment down below so we can learn from different outlooks, theses, and strategies from each other—don't be shy!
Happy trading this week!
📌 This post is for educational and entertainment purposes only. Not financial advice. Options trading involves significant risk. Always DYOR before trading.
#OptionsTrading #NVDA #DiagonalSpread #AIStocks #TradingIdeas #EarningsPlay #OptionsHunter #GrowthStocks
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
68
4
1
1
+0
13
Translate
Report
518K Views
Comment
Sign in to post a comment
avatar
Options Hunter
Influential mooer of October
Data-driven option strategies from 0dte options challenges to earnings playbooks to achieve POSITIVE expectancy goals!
7122
Followers
78
Following
7510
Visitors
Follow