Interesting NVDA Options Strategies Worth Exploring for 2027 Expiration

NVIDIA Corp (NVDA) continues to attract options traders, and the March 2027 expiration contracts present some compelling opportunities worth examining. With these longer-dated instruments, the extended time to expiration creates a window for premium collection strategies that might deliver more attractive yields than shorter-dated alternatives. We’ve analyzed the NVDA options chain to highlight two interesting positions that caught our attention—one on the put side and one on the call side.

Understanding the Put Strategy: Income Through Assignment Risk

The $170.00 strike put contract offers a current bid of $24.35, creating an interesting proposition for investors seeking income. By selling-to-open this put, an investor essentially commits to purchase NVDA shares at $170.00 should assignment occur. However, the premium collected substantially improves the economics: the effective cost basis drops to $145.65 (before commissions), compared to the current market price of $176.90 per share.

What makes this particular strategy interesting is the out-of-the-money positioning. The $170.00 strike sits approximately 4% below today’s trading price, meaning there’s a meaningful probability the contract expires worthless. Our probability analysis suggests roughly a 67% chance of expiration without assignment. Should this occur, the $24.35 premium represents a 14.32% return on the capital committed to the position—or 12.82% on an annualized basis. This metric, what analysts call YieldBoost, provides a clear way to evaluate the opportunity.

For investors already bullish on NVDA and planning to buy shares anyway, this approach offers an interesting alternative execution method. Rather than paying today’s market price outright, they essentially get paid to wait—with the possibility of landing shares at a 4% discount.

The Call Strategy: Capped Upside for Premium Income

On the call side, the $200.00 strike presents an equally interesting dynamic for covered call enthusiasts. If an investor purchases NVDA at today’s price of $176.90 and simultaneously sells the $200.00 call, they’re committing to deliver shares at $200.00 at March 2027 expiration.

The math here reveals why this strategy merits attention. The call premium stands at $27.20. Combined with the stock purchase at $176.90, this structure generates a total potential return of 28.43% if the shares get called away at expiration—before commissions. That’s an interesting way to enhance returns in a flat-to-moderately-bullish scenario.

The $200.00 strike represents approximately 13% upside from current levels. This out-of-the-money positioning creates a 46% probability that the covered call expires worthless, meaning the investor keeps both the shares and the premium. When the contract expires unexercised, the $27.20 premium alone delivers 15.38% additional return—or 13.76% annualized—to the underlying stock position.

Market Context: Volatility and Time Value

Both strategies benefit from the current volatility environment. The put contract carries 47% implied volatility, while the call shows 46% implied volatility. These levels sit slightly above NVIDIA’s trailing 12-month historical volatility of 44%, suggesting the options market is pricing in slightly elevated uncertainty relative to recent trading patterns.

This volatility differential creates interesting pricing dynamics. The extended time to expiration compounds these effects—more time means more uncertainty, which translates into higher premiums for both put sellers and call sellers. Investors have 408 days to observe how these probabilities evolve and how market conditions shift the risk-reward equation.

Considering Risk and Real-World Trade-offs

What makes these strategies interesting is not just the yield potential, but also the explicit trade-offs they involve. The put seller accepts the risk of assignment at $170.00, which means capital is committed. The covered call seller caps upside potential—if NVDA experiences a dramatic surge past $200.00, those gains evaporate.

Both strategies depend on understanding your market outlook. For the put strategy, you need conviction that NVDA won’t collapse significantly below $170.00 in the next two years. For the covered call, you must be comfortable potentially missing explosive upside gains above $200.00.

Investors should monitor how implied volatility, time decay, and stock price movement affect these positions throughout the holding period. Historical price charts and trend analysis become essential companions to these numerical calculations—understanding NVIDIA’s business fundamentals and competitive position helps contextualize whether these strikes represent compelling entry or exit points.

For those seeking additional options contract ideas across the market, deeper analysis tools and probability models help identify similarly interesting opportunities where premium collection aligns with market outlook.