Nvidia straddle A long NVDA straddle pays off when volatility increases and the price of the underlying moves by a significant amount, but it doesn't matter whether it's to the upside or the downside.
The profit potential is virtually unlimited, so long as the price of the underlying security moves very sharply.
Nine percent is the implied volatility going into earnings, that sets the pricing of these options.
If you are long NVDA outright, you may want to consider a different and more protective approach (covered call or owning puts, etc.).
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