I Sold A Put Option Contract For Nvidia (Again) On 28 Oct 21. Why?

On 28 Oct 21, I sold a PUT contract on Nvidia, with details as follow:

Strike Price: $260
Date of Expiration: 3 Dec 21 (35 days contract)
Premium Collected: $19.50 (7.5% returns)

I previously close a PUT contract in 12 days because I thought Nvidia’s share price is going up too high and may have a chance of pullback soon. Read more here:
I Close My Nvidia PUT Option Contract and Made $1405 (5.98%) in 12 days

However, the recent strong earnings from AMD, a fellow semiconductor company that supplies CPU and GPU, have given me the confidence that Nvidia will do well in the upcoming earnings release on 17 Nov 21. Initially, I wanted to sell a Facebook PUT contract instead but the IV at 20% is too low for my liking, which will translate to a lower premium being paid to the option contract seller (me). Nvidia has a high IV at 38% as earnings are yet to be announced.

Read more about why IV is important here:
What Is Implied Volatility (IV) And Why It Matters In Options Trading?

Conclusion
I sold a PUT option on Nvidia at a strike price of $260 because I am bullish (think it will go up) on the stock leading up to the earnings release but it does not mean that I think Nvidia is undervalued. My risk is in holding onto a stock that may be overvalued if I have to buy the stock when the contract is exercised on the expiration date. However, I also have strong faith in the future growth of the company, so I do not mind owning the stock at a slightly higher value. If the run-up to earnings mimics the trend of my previous contract where the share price of Nvidia continues to increase, then I will probably lock in the profits by closing the contract without having to own the shares.