NVDY: Its 6-Month Outperformance Could Be Overturned Soon, A Complete Analysis
Summary
- In contrast to income generation, we trade options to maximize return and minimize risk based on our short-term market expectations.
- YieldMax NVDA Option Income Strategy ETF's portfolio is currently evenly distributed (precisely 108,840 contracts) among bull puts, call credit spreads, and long naked calls.
- NVDY's aggregate profitability profile shows that it will start to underperform Nvidia stock if NVDA starts appreciating above $152 before 21st Feb 2025.
- In addition, no additional profits could be captured unless NVDY appreciates above $163 before 21st Feb 2025.
- Analyst ratings and short-term market outlook suggest NVDA could continue trending higher before 21st February, which could reverse NVDY's 6-month outperformance.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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