Jim Strugger's Hedging Strategy In NVIDIA

Jim Strugger suggested on Bloomberg Markets a hedging strategy in NVIDIA Corporation (NASDAQ: NVDA).

He said that investors with a long position in NVIDIA should sell the February 120 call and buy the February 95 put. With this options structure, the long stock position is protected below $95 or 17.29 percent below current market price. Gains are capped at $120 or 7.69 percent above current price.