DailyPlay – Opening Trade (NVDA) – November 12, 2025

NVDA Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
NVIDIA Corporation (NVDA) remains the clear leader in the AI semiconductor space, continuing to drive innovation across data centers, GPUs, and AI infrastructure despite recent volatility. The company is set to report earnings on Wednesday, November 19, after the close, a key catalyst that could reignite momentum. Recently, SoftBank sold its entire 32.1 million-share position in NVDA, a stake worth approximately $5.8 billion, which temporarily weighed on the stock price and heightened short-term uncertainty. This large-scale divestment, however, has also driven implied volatility higher, creating attractive option premium opportunities for traders ahead of earnings. Despite the near-term selling pressure, NVDA’s long-term growth prospects, market dominance, and expanding AI ecosystem continue to justify a bullish outlook.

Technical Analysis
NVDA recently pulled back to retest support near $185, aligning with the prior breakout level and the 50-day moving average around $183. The stock’s broader uptrend remains intact, holding above the 20-, 50-, and 200-day moving averages, with buyers continuing to defend key support levels. The RSI near 48 suggests neutral momentum, allowing room for an upside move as the stock consolidates above its major averages.

Fundamental Analysis
NVDA continues to outperform the broader semiconductor industry with exceptional growth and profitability metrics. Its AI-driven business segments, led by robust data center demand and accelerating enterprise adoption, provide a strong foundation for sustained earnings expansion. Despite premium valuation multiples, NVDA’s forward growth profile supports the current market pricing, suggesting upside potential remains intact.

• Forward PE Ratio: 28.48x vs. Industry Median 26.41x
• Expected EPS Growth: 39.49% vs. Industry Median 18.61%
• Expected Revenue Growth: 37.54% vs. Industry Median 10.60%
• Net Margins: 52.41% vs. Industry Median 14.16%

Options Trade
We are using a bull put vertical spread expiring December 12, 2025, selling the $190 put and buying the $180 put for a net credit of $3.79. This credit spread was selected due to the notable skew in the options chain following the recent SoftBank selloff, which drove implied volatility higher and created an attractive setup to execute an out-of-the-money put vertical with favorable pricing. The trade risks $621 to earn a maximum reward of $379, resulting in a reward-to-risk ratio of approximately 0.61:1 (or 61%). Elevated implied volatility enhances premium capture, while the defined structure limits downside exposure. This setup reflects a moderately bullish stance, anticipating NVDA will hold above $190 through expiration as the market refocuses on strong fundamentals post-earnings.

NVDA – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 NVDA Dec 12 $190/$180 Put Vertical Spreads @ $3.79 Credit per Contract.

Total Risk: This trade has a max risk of $1,863 (3 Contracts x $621) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $621 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 91

Stop Loss: @ $7.58 (100% loss to value of premium)

View NVDA Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Tuesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View NVDA Trade