Not very long ago NVDA was a $30 stock. Now that the world has caught on to the many uses of GPU’s NVDA is a $190 stock. Citron hated it at $100 and that was $90 ago. With earnings coming up the MOMO crowd will not be able to let NVDA go so I think there is reasonable support for the name. The question is if I can make some upside cheap enough.
The trick is to find a nice bargain in the options going into expiration. The Nov10 cycle should hold the earnings but going to Nov17 is a safer bet. $200 is a magnet right now so given a little time we can get there. Nov03 IV is in the 30s which is not a bad sale outside the earnings cycle. That gives us the reduced short theta of the earnings and the soon to be hyper long theta in the Nov03.
This time spread with any momentum should price well and unless NVDA falls out of bed. The 200 calls in the earnings cycle should hold their valve around $3.75 or so. Thus we can trick the market into paying for our earnings calls if all goes well.
200 level time spread in NVDA look inviting selling the Nov03 and buying Nov17. Close in early Nov or ride the long calls after Nov03 expiration. If one must hedge, use the Nov03 cycle puts on a ratio, maybe 5 spreads to 1 put.
If all this is Greek, take our Gold Course.
Disclosure: NVDA positions