NVDA LILO (Patreon)

MY NVDA TRADE

I've gone short against NVDA selling the December 500 CALL options, selling them for $40. My expectation is that the price will be between $540 and $550 after the earnings report, or it might plummet. Note I can ride NVDA up to 540 and still not lose.

If it surges to $600 or more, I'll exit my position.

My underlying are leaps I purchased - long-term options (LEAPS) at a $200 strike price back in 2022. By selling these calls, I've effectively reduced my investment cost to a $20 Credit on a $300 spread.

Currently, NVDA is facing challenges at a critical stage (referred to as Layer 9), and it remains to be seen if it will advance to the next level (Layer 10) after the market closes, or if it will decline. I am excited to see but my heart says we could shoot to $600 but time for me to reallocate to Crypto - which was always the plan with my 2023 money makers of META and NVDA etc

NVDA UPDATE

NVDA, the world’s most valuable chipmaker, is anticipated to surpass high expectations in its upcoming post-market release on Tuesday, continuing the trend from the past two quarters, with sustained demand for its artificial intelligence computing chips.

Despite its impressive 245% gain this year, the stock is under pressure to perform flawlessly. This was evident in August when Nvidia's share boost from excellent earnings dissipated as the broader S&P 500 index's gains waned. The higher we go the higher the expectations.  Re earnings, in the short term, even great performance might not be sufficient.

Nvidia's role in the market-capitalization weighted S&P 500 Index has become crucial. The company's stock, which accounts for about 15% of the Index's 2023 rally, could significantly impact the market with a substantial earnings shortfall.

The company's shares surpassed $500 each Monday - record high.  Monday, give Nvidia a market valuation of $1.25 trillion. This makes it the fifth-largest component of the S&P 500 with a 3.3% weighting.