We recommend selling the following OTM Put Option of NVDA.

Sell NVDA Feb 28 125 PE

Our analysis behind this recommendation is as follows:

A) Analysis of Stock Market Indices

Insight #1: The S&P 500 (SPY) is showing a moderately BULLISH sentiment today! Check the Open Interest distribution for SPY & QQQ below.

The pie charts illustrate the bullish or bearish sentiment for each ticker {GLD, IWM, QQQ, SPY} by showing the distribution of Open Interest, color-coded as follows:

Insight #2: For QQQ options expiring on February 28, 2025 (2 DTE), 74.1% of the total open interest is jointly reinforcing a moderate BULLISH sentiment.

B) Analysis of Mag-7 Stocks

Insight #3: NVDA shows the strongest BULLISH sentiment among the Mag 7 stocks, based on the Open Interest distribution across weekly (2 DTE) and monthly (09 DTE) option chains.

Insight #4: NVDA is the most BULLISH based on the weekly (2 DTE) option chains, with 76.9% of total Open Interest jointly signals a strong BULLISH sentiment..

Insight #5: Additionally, NVDA shows strong BULLISH sentiment, as evidenced by the absolute Open Interest distribution across its weekly (2 DTE) and monthly (9 DTE) option chains.

Insight #6: To identify the optimal Strike Price for trading, we analyze the Open Interest at various Strike Prices for NVDA’s Put Options in the weekly (2 DTE) option chain.

Notably, the 125 PE Strike has an Open Interest of 71,185, a Delta of 30%, and a Option Premium of $3.20.

Conclusion

Based on our analysis, we propose to Sell to Open the following OTM Put Option of NVDA:

Sell NVDA Feb 28 125 PE

Appendix — My Trade

On February 26, 2025, at 10:55 AM, I executed the following trade:

Sell To Open NVDA Feb 28 125 PE @ 3.20

This trade is clearly reflected in the price chart of the NVDA 125 PE shown below:

I sold to open an NVDA Feb 26 140 Put at $3.20, collecting $320 per contract.