On CNBC's Options Action, Carter Worth spoke about NVIDIA Corporation NVDA. He said the stock is the best performing tech name, but he thinks the trade is crowded and that there isn't much upside ahead.
Worth explained that in the last 10 months, the semiconductor index didn't have a single pullback to its 150-day or 200-day moving average. Since the beginning of the data for the index, there has only been one instance where it hasn't checked back to the trend in the 12-month period.
Mike Khouw suggested that traders should buy the June 100/80 put spread for a total cost of $5.40. The trade breaks even at $94.60 or 5.71 percent below the current stock price. It can make a maximal profit of $14.60, if Nvidia drops 15.43 percent or more at the June expiration.
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