The sudden resignation of Jensen Huang has shaken the tech sector, causing the stock prices of NVIDIA (Nvidia, NVDA) to fall by about 30% since October 6th. The market detests uncertainty, and losing a visionary founder, especially without a clear handover plan in place, only exacerbates this uncertainty.

However, for investors seeking opportunities, this panic has made stocks cheaper, and of course, options have become much more expensive. NVIDIA is currently trading in the $160 range, and its valuation has dropped significantly, but its fundamentals are still largely intact. Although Huang was the creator of NVIDIA AI's dominant position, the company's moat—its stronger GPU, CUDA software ecosystem, and expertise in network technology—will not disappear with his departure. The company's structural advantages in global artificial intelligence deployment still exist.

Buying high-quality companies at a discount is basic investment knowledge, but the current market environment may bring another outcome for those who use options. The departure of Huang means that NVIDIA will be overshadowed by a transition period for the foreseeable future. It will take time to advance permanent CEO selections while dealing with global regulatory reviews. As a result, NVIDIA's implied volatility – the market's pricing of future stock price fluctuations – has soared to levels not seen since the tariff shocks in the first half of 2025, and this high volatility is likely to continue for several months as the leadership change unfolds.

This period of long-term high implied volatility can be a "gold mine" for option sellers, especially for investors who implement option combination strategies such as covered call options. If you buy NVDA stocks at these depressed prices and simultaneously sell the corresponding out-of-the-money call options, the premium you receive is directly linked to the implied volatility. Due to panic and uncertainties related to the transition, the income obtained from selling covered call options is now significantly higher than usual.

In the long run, this will significantly reduce the risk level of holding that stock. Continuously collecting these elevated option premiums will systematically lower your overall cost base on the underlying stock. If the stock price remains flat or slowly recovers during the CEO selection period, you can achieve excess cash returns on a stagnant asset; if the stock price further declines, the higher option premium income will act as a significant buffer against losses, thereby substantially reducing the overall risk of this strategy over a certain period of time.

Transaction Plan:

• Buy 100 shares of NVIDIA.
• Sell 1 call option with an exercise price of $185 on December 18th.

By continuously executing a covered call strategy, investors can leverage the very fear that drives down stock prices to generate stable, low-risk income, while continuing to maintain an exposure to the future of AI.

Revelation: Tidal holds all the securities mentioned in this text.

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