Nvidia (NVDA) stock is showing extremely high implied volatility in the lead up to their earnings announcement on November 20th. There is also significant volatility skew with short-term options showing much higher implied volatility than long-term options. One way to take advantage of this skew is via a diagonal put spread. Let’s look at an example using Nvidia. Nvidia Diagonal Put Spread Example The trade I’m looking at is selling a November 22 put with a strike price of $133 and buying a December 6 put with a strike price of $128. As of yesterday’s close, the November 22 put could be sold f…