Maximizing Returns with NVDA put and Call Strategies in March 2027

The options market for NVIDIA Corp (NVDA) has expanded with the introduction of longer-dated contracts set to expire in March 2027. With substantial time value built into these instruments, traders now have compelling opportunities to generate enhanced premiums by engaging with both defensive and aggressive positioning strategies.

Understanding the put Contract Strategy for Income Generation

When examining NVDA’s put options chain, a notable opportunity emerges at the $170 strike level, which currently carries a premium of $24.35. For traders willing to establish a put selling position, this strategy involves committing to purchase NVDA shares at $170 per share while collecting the upfront premium. This approach effectively reduces the effective purchase price to $145.65, presenting an attractive alternative to buying shares at the current market level of $176.90.

The mathematics here become interesting: since the $170 strike sits approximately 4% below today’s trading price, there’s a meaningful probability the put contract could expire worthless. The analytical data suggests roughly a 67% likelihood of this outcome occurring. Should this scenario play out, the premium collected would translate into a 14.32% return on the cash tied up, or 12.82% on an annualized basis—a metric the options community refers to as the yield enhancement factor.

However, traders must weigh the potential downside. If NVDA shares decline and the put contract finishes in-the-money, the obligation to purchase stock at the higher strike price kicks in. This is why understanding the trailing twelve-month price history and NVDA’s fundamental business performance becomes critical before committing capital.

Covered Call Strategy: Trading Upside for Premium Income

On the call side of the options landscape, the $200 strike presents an interesting covered call opportunity, with current premiums near $27.20. For investors holding NVDA shares (or planning to purchase them at $176.90), selling a covered call at this level creates a defined outcome: the shares would be called away at $200 per share upon expiration, delivering a total return of 28.43% including the collected premium.

The tradeoff, of course, involves sacrificing unlimited upside potential. If NVDA experiences a significant rally beyond $200, that additional gain remains off the table. For traders comfortable with capping appreciation in exchange for premium income, this represents a structured wealth-building approach.

Because the $200 strike represents roughly a 13% premium to the current trading price, there’s also a 46% probability the covered call expires worthless, allowing traders to retain both their shares and the premium collected. Under this scenario, the premium delivers a 15.38% return boost, or 13.76% annualized.

Comparing Strategies and Volatility Considerations

These two approaches serve different portfolio objectives. The put selling strategy appeals to traders seeking entry points into NVDA at lower effective prices, while the covered call strategy suits those already holding or committed to owning shares and seeking additional yield.

The implied volatility embedded in these March 2027 contracts runs approximately 47% for the put and 46% for the call, compared to the actual trailing twelve-month volatility of 44%. This slight elevation in implied volatility means options sellers capture additional premium for bearing that perceived risk.

The extended time frame until March 2027 expiration makes these contracts particularly attractive for income-focused traders, as the additional months translate directly into larger premium capture opportunities compared to shorter-dated alternatives. Careful consideration of your directional bias and risk tolerance remains essential when selecting between put selling and covered call strategies.