Nvidia, Inc. (NVDA) produced impressive fiscal Q2 revenue and earnings, but its free cash flow (FCF) and FCF margins were lower than in Q1. NVDA may be stuck in a trading range, despite ****** ysts' higher price targets. As a result, shorting out-of-the-money (OTM) puts might be the best play here.
NVDA fell on Friday, Aug. 28, to $217.55. That's only slightly higher than before it released its results on Aug. 26 ($213.05 on Aug. 25).
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Moreover, NVDA stock has essentially been flat for the past 4 months since the end of April (i.e., NVDA was at $216.61 on April 27). That can be seen in the Barchart chart below.
I discussed shorting NVDA cash-secured puts a week ago in the Aug. 23 Barchart article, "Nvidia Stock Is Treading Water Ahead of Earnings This Week - What's the Best NVDA Play?"

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