Why Pay More for Less? This Options Trick Flips the Script

by | Aug 5, 2025

🚨 I’ll be live at 10 a.m. ET with Nate Tucci🚨

 It’s Spotlight Friday, where we dive a bit deeper into an individual stock, either DELL or FSLR — be sure to vote on which stock in Nate’s Telegram channel [tap to join us for Opening Playbook]!

 

Let me ask you a simple question…

If you had to bet your entire portfolio on one stock moving higher — Nvidia (NVDA) or UnitedHealth (UNH) — which would you choose?

I’m sure the vast majority would say Nvidia.

Now here’s the wild part…

If you buy a debit spread on NVDA, and buy the same structure on UNH, you’d expect the Nvidia trade to cost more, right? After all, it’s the stronger stock with better odds of going up.

But it doesn’t.

In fact, in many cases, the pricing is almost identical.

This is one of the biggest, most overlooked advantages in options trading — and it’s what makes debit spreads so powerful.

Because we’re buying a call and selling a call at nearly the same strike and expiration, the market’s inflated pricing on strong names like Nvidia or Microsoft gets neutralized.

The extrinsic value and implied volatility baked into each side of the spread mostly cancel out.

What that leaves us with is an options trade where we can risk $2 to make $2… on a stock that goes up 70% of the time.

It’s like flipping a coin that lands on heads more often — but still getting paid even money on the bet.

Now, to be clear — regular calls do cost more on strong stocks. But when you wrap it in a spread, the math tilts back in your favor.

This is why I trade debit spreads on strong stocks like NVDA, MSFT and META… not the laggards.

Because even with better odds of success, the market doesn’t make me pay more.

And in many cases, these spreads hit their targets with just a 0.5-1% move — something strong stocks tend to do all the time.

So if you’re tired of trading junky tickers just because the options are cheap… consider flipping the script.

Bet on strength. Wrap your risk. Target 100%.

Because when you can risk a dollar on a trade that wins seven out of 10 times — and the market still lets you do it at even odds — that’s not just smart trading…

That’s exploiting the system Wall Street built.

And we love that!

We break all of this down during the Opening Playbook sessions daily at 10 a.m. ET — see you there!

A Stock to Watch: Matador Resources (MTDR)

A stock to watch is Matador Resources (MTDR), as it tends to be bullish at the beginning of August.

Buying MTDR on Aug. 4 and holding for 21 days has delivered a nice average return of 6.4% over the past several years. While past performance is no guarantee, it’s definitely something to consider as we start August.

Graham Lindman
Graham Lindman Trading

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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

P.S. 2 Former Hedge Fund Managers Recently Had A Private Meeting in Utah…

To give a deep dive into a brand-new way to ride billions of dollars in forced momentum on the S&P 500 each day!

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