Few stocks capture the imagination of investors the way Nvidia (NVDA) does. The numbers alone are impressive: up more than 1,200% since October 2022, now the largest component in the S & P 500, and the only stock with a market capitalization above $4 trillion. To put that in perspective, Nvidia is worth nearly as much as Broadcom , Meta Platforms , and Tesla combined. Yet, even after this historic run, Nvidia trades at a forward price-to-earnings ratio of roughly 22, shockingly reasonable given that it's leading the largest technological transformation in decades — the artificial intelligence revolution — while still growing earnings per share by 60%. Investors love Nvidia for the same reason tech companies depend on it: The company's chips are at the heart of the AI boom. Its graphics processing units, or GPUs — particularly the advanced Blackwell architecture and upcoming Rubin processors — deliver unmatched performance in training neural networks and powering large language models. That dominance has created a near-impenetrable moat. Today, Nvidia controls 85% of the market for AI accelerators, the chips that handle the specific demands of machine learning. Cloud titans are spending tens of billions on Nvidia hardware to fuel their data centers. Competing products from AMD and Intel exist, but none threaten Nvidia's leadership in the space. Yet, for all its strength and scale, the most intriguing opportunity in Nvidia right now may not be its stock — it's the option market. Shares are about 14% below the all-time high of $212.19 posted in October but for traders who think Nvidia is going to make a run to new highs, bullish exposure through call options is as cheap as it's been for more than four years. NVDA CallDex tracks the relative cost of 30-day out-of-the-money call options. NVDA CallDex has recently collapsed to just 55, marking its lowest reading since the end of 2021. By comparison, NVDA CallDex topped 200 in March and August 2024, hovered above 125 in November and was still over 100 as recently as February 2026. This steep drop signals that speculative bullish positions now cost far less to establish — a rare window for traders who believe Nvidia's momentum still has room to run. Let's make it tangible. With Nvidia trading around $183.60, a May 8 call option with a strike price of $200 costs $1.35. That small premium, about 0.7% of the underlying stock's value, offers limited downside risk and leveraged upside potential. The trade breaks even at $201.35, meaning any close above that at expiration generates a profit while a reversal limits losses strictly to the premium paid. If Nvidia rallies, a trader might sell the call option and book a profit prior to expiration even if shares don't reach that breakeven level. For investors who think Nvidia's long-term dominance in AI infrastructure will persist but hesitate to buy after such an enormous rally, long calls represent a cost-effective alternative. They provide defined risk, amplify gains and — given today's depressed pricing — deliver exposure at one of the most attractive volatility-adjusted rates since 2021. Nvidia's leadership in AI hasn't changed but its options pricing has. For bullish investors, that divergence may signal the best way to participate in the next leg of the Nvidia story — and do it far more cheaply and with less risk than buying the stock outright. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
