My NVDA Put Ratio Spread (Sep 5 Expiration)
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Long 1x $175 put
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Sold 2x $167.50 puts
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Net premium = $0
How It Works for Me
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If NVDA stays above $175
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All options expire worthless.
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I walk away even (no gain, no loss).
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If NVDA finishes between $175 and $167.50
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My $175 put gains value as NVDA trades lower.
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The $167.50 puts I sold don’t cost me anything yet.
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This is my profit window.
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If NVDA closes exactly at $167.50
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That’s my best outcome.
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My $175 put is worth $7.50.
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The $167.50 puts I sold expire worthless.
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My max profit = $7.50 per share ($750 per spread).
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If NVDA falls below $167.50
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My $175 put still makes money, but…
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The 2x $167.50 puts I sold go in the money, leaving me with extra downside exposure.
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Losses start piling up below $167.50.
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Breakeven = $160.
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Below $160, I lose dollar-for-dollar.
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My Payoff Profile
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Max Profit: $750 (at $167.50)
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No Cost: I didn’t pay premium upfront.
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Risk: Significant downside risk if NVDA crashes below $160.
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Ideal Scenario for Me: NVDA drifts down gently and pins near $167.50 at expiration.
