Nvidia call options may be a better buy than Tesla for long-term gains

From Nasdaq: 2024-05-24 14:47:43

The S&P 500 was up 0.8% midday Friday, possibly closing the week in positive territory. Deckers Outdoor (DECK) soared 13% with strong Q1 results, beating revenue by 8% ($960 million) and earnings by 65% ($4.95 per share). Unusual options activity with Nvidia (NVDA) and Tesla (TSLA) calls expiring Dec. 2026.

Nvidia and Tesla call options expire in 939 days, with strike prices of $1,100.00 and $230 respectively. With Nvidia’s ask price at $329.55 and Tesla’s at $49.50, both are reasonable bets. Nvidia’s financials show higher net cash of $20.45 billion compared to Tesla’s $16.95 billion. Nvidia’s revenue and earnings growth rates are significantly higher than Tesla’s in the last 12 months.

Barchart.com data shows differing analyst opinions for Tesla and Nvidia stocks. Analysts seem more favorable towards Nvidia. While both companies are heading in different directions currently, buying call options can be profitable. Nvidia may be a better call option for long-term gains based on potential growth prospects and financial stability.



Read more at Nasdaq: Nvidia vs. Tesla: Which Is the Better Buy for an Early 2026 Christmas Present?