Nvidia (NVDA) has become the world’s first $4 trillion company, surpassing Apple and Microsoft. The leading AI stock has experienced a significant surge of nearly 70% and has been on a parabolic move since the “Liberation Day” April lows. However, some experts believe it is now time to book profits for those who own NVDA.
Nvidia’s rapid growth from $1 trillion to $4 trillion in just two years is remarkable. Its market cap milestone marks a significant achievement under CEO Jensen Huang’s leadership. Despite the impressive performance, there are potential risks ahead.
The expert, who previously bought NVDA stock on the April dip, now considers establishing an option position as a contrarian strategy. They have set up a risk reversal trade using a $150 8/22/2025 Put and sold the $170 8/22/2025 Call for $6.80.
This trade allows the investor to profit from potential retracement of NVDA’s price, while also managing their exposure. For those who are not long NVDA, buying an upside call can help define risk. However, selling naked calls on NVDA is not recommended due to its high volatility.
The expert emphasizes that options trading involves risks and requires careful consideration. Before making any financial decisions, it is crucial to seek advice from a financial or investment advisor.
Source: https://www.cnbc.com/2025/07/11/time-to-book-some-profits-in-nvidia-how-to-trade-the-4-trillion-stock-from-here-using-options.html