Nvidia stock has fallen about 13% this month, with its stock price closing at $108.76 as of Mar 11. On the one hand, investors may worry that the selling pressure would accelerate. On the other hand, they don’t want to miss the opportunity to buy the dip. Let’s dive into the potential sscenarios and related options strategies with Nvidia stock.

1. Moderately Bearish

Tariff Anxiety Has Fueled Volatility in Global Markets

Investors worried about a potential recession down the road. That exacerbated various fears in the tech sector, including around tariff threats and whether the ever-rising spending budgets pledged toward artificial-intelligence projects are sustainable.

Trump’s move to widen his trade offensive comes at a hazardous juncture seven weeks into his second term. His rapid effort to rewire the US economy as a global manufacturing power has rattled financial markets, spooked consumers still haunted by pandemic-era inflation and fueled recession fears amid mounting uncertainty for corporate America.

Nvidia’s Long-Term Demand Faces Challenges

The market isn't very impressed with Nvidia despite its high growth rate and the successful rollout of its Blackwell chips. Some might blame this on the falling gross margins. However, the bigger challenge may come from long-term demand.

In February, Microsoft shocked the tech world when it scrapped some leases for data centers in the U.S. The software giant is believed to be one of Nvidia's top consumers, and a reduction in its data center capacity could indicate a desire to reduce its exposure to the industry.

Further alarm bells are coming from OpenAI and Meta, who are aiming to reduce their reliances on third-party suppliers. If major clients scale back their AI investments and turn to custom chips, Nvidia's growth potential could be seriously eroded.

Option Strategy: Bear Put Spread

• Structure: Buy NVDA $110 Put + Sell NVDA $100 Put (expiring Apr 11)

  $NVDA Vertical 250411 100.0P/110.0P$

  • Cost: ~$4.13×100 debit (mid-price: $8.00 buy / $3.87 sell)

  • Max Profit: $585

  • Max Loss: -$415

  • Breakeven: $105.85

  • Rationale: Capitalizes on elevated put open interest at $105.

  Source: Tiger Trade App

2. Moderately Bullish

Next Week's GTC Conference May Be a Catalyst

UBS reiterated Nvidia stock as a “Buy”, stating that it is standing by the stock ahead of its AI GTC Conference on 18, March.

“The UBS Tech Team remains positive longer term on AI drivers, but investors are currently less assured than they were through the past two years. We await confirmation catalysts (Nvidia GTC 18 March, Computex 20 May) to possibly support sentiment.”

Melius Research analyst Ben Reitzes said GTC is likely to have a more big-picture focus, on areas such as the opportunities in robotics, artificial-intelligence software, autonomous driving and drug discovery. "To all these long-term themes, we think Jensen can hit it out of the park."

GTC should also refocus attention on Nvidia's product road map going out several years. For instance, Reitzes is looking for Nvidia to discuss the memory boost expected from its Blackwell Ultra product and preview what's to come with the Rubin chip family in 2026, before teasing its 2027 plans.

"We expect significant improvements in speed, memory and power that will become even more needed in the future," Reitzes wrote. "These products should excite partners at the conference ranging from Microsoft to Dell to sovereigns, which normally would please investors (at least if it was last year)," he added.

Option Strategy: Bull Call Spread

• Structure: Buy NVDA $110 Call + Sell NVDA $120 Call (expiring Apr 11)

  $NVDA Vertical 250411 110.0C/120.0C$

  • Cost: ~$3.73×100 debit (mid-price: $7.25 buy / $3.52 sell)

  • Max Profit: $632.5

  • Breakeven: $113.68

  • Rationale: Targets upside toward resistance with limited risk. High open interest in $110–$120 strikes ensures liquidity.

  Source: Tiger Trade App

3. Bargain Hunting Nvidia Stock

Option Strategy: Protectvie Put

Among the various option strategies, the Protective Put stands out as a good fit for the current "bargain hunting" scenario. This strategy helps investors limit potential losses, even if they enter the market "halfway up the mountain." It allows for more confident and bold buying. The approach is straightforward: when purchasing stocks, simultaneously buy the corresponding Put option — essentially, Long Stock + Long Put.

• Structure: Buy NVDA $100 Put (expiring Apr 11) + Buy 100 shares of NVDA

  $NVDA 20250411 100.0 PUT$

  • Cost: ~$3.87×100 (mid-price) + $110×100 shares

  • Protection Level: Below $100 (about -10% from current price)

  • Rationale: Limits losses if NVDA breaks below support. Cost represents less than 4% of current stock price.

  Source: Tiger Trade App

Option Strategy: Sell Put

The Sell Put strategy — also known as a Cash-Secured Put — is a smart way to potentially buy the dip at a lower price while earning a premium.

This strategy works well for "buying the dip" because you get paid while waiting for a better price. If the stock dips, you buy at a discounted price; If it doesn’t dip, you still earn income from the premium.

• Structure: Sell NVDA $100 Put (expiring Apr 11)

  $NVDA 20250411 100.0 PUT$

  • Premium Received: ~$3.87×100 (mid-price from options data).

  • Breakeven: $96.33

  • Max Profit: $387

  • Risk: Obligation to buy NVDA at $100 if price falls below $100.

Source: Tiger Trade App

4. Generate Extra Income

Option Strategy: Sell Covered Call

The Sell Covered Call strategy is a smart way to generate extra income from stocks you already own — especially if you think the stock might stay flat or rise only slightly.

It involves two parts: Own the stock (100 shares per contract). Sell a call option at a strike price higher than the current stock price — this gives someone else the right (but not the obligation) to buy your shares at that price before the option expires.

How it works:

You collect the premium upfront when you sell the call.

If the stock stays below the strike price: The call expires worthless, you keep the premium, and still own the stock.

If the stock rises above the strike price: Your shares get "called away" — meaning you must sell them at the strike price. You still keep the premium, but you miss out on gains above that strike.

Structure: Sell NVDA $115 Call (expiring Apr 11) against 100 shares

• Premium Received: ~$5.12×100 (mid-price)

• Breakeven: $120.12

• Max Profit: $512

• Rationale: Generates income while holding shares. Upside capped at $115 (+5.7% from current price).