Nvidia Traders Are Wary of Call Option Put Play Before Profits

[{"selector":"#anim-f9979124-7c59-4a68-8284-afb87cad772f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f999af85-0804-4ad1-80d2-f567e389481c","keyframes":{"transform":["translate3d(0px, 342.26368%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] As Nvidia Corp.'s share price experiences significant fluctuations, options for hedging against these swings come at a premium

[{"selector":"#anim-6e2d91a7-0127-49e3-8fb0-7bda8e47dddc","keyframes":{"transform":["rotate(-540deg) scale(0.1)","none"],"opacity":[0,1]},"delay":0,"duration":1000,"fill":"both","iterations":1}] SoundHound AI: Pioneering Conversational Intelligence Distinguished for its prowess in conversational intelligence or voice artificial intelligence (AI), SoundHound AI serves as a pivotal player across diverse industries, spanning automotive, hospitality, customer service, and beyond. Leveraging its suite of developer tools, the company empowers brands to tailor bespoke voice AI interfaces for myriad applications.

[{"selector":"#anim-3701cf21-e41d-4dc7-b91a-6d3270a28ae3","keyframes":{"transform":["rotate(-540deg) scale(0.1)","none"],"opacity":[0,1]},"delay":0,"duration":1000,"fill":"both","iterations":1}] However, derivative traders are enticed to sell contracts, aiming to earn additional yield as the stock corrects its substantial rally.

[{"selector":"#anim-de5750df-d6d5-4863-925b-e1e6b79515b4","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-30aada96-5ee4-4a1a-aefa-7049e565e733","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] For investors who anticipate a ceiling on further stock gains in the near term, call options are emerging as an appealing prospect, according to some market observers.

[{"selector":"#anim-74698b0b-24b9-4310-95ed-337efb57ebb2","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-ed974541-1f9d-4bed-9b2b-7a40e39bdecd","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Amid implied volatility hovering near year-to-date highs for the artificial intelligence leader, options bets suggesting that the chipmaker's stock will remain capped below 10% before its first-quarter earnings report on May 22 are commanding a 2% premium.

[{"selector":"#anim-cea35f39-98fa-4a04-9623-290ca72c0ec2","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] Michael Purves, founder and CEO of Tallbacken Capital, emphasizes the potential benefits of selling short-dated calls for those holding long positions in the stock

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[{"selector":"#anim-48de558f-61de-49b2-be3c-5e1e665571ac","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3260030c-7786-4158-90a1-4f0b08e710c5","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Although Nvidia shares have retraced more than 20% from their intraday all-time high in March, following a staggering ninefold surge over the past 18 months, the stock's recent rebound is notable. However, given the inherent unpredictability in the price movements of AI stocks, caution remains warranted.

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