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Today's Trade & News

Here is NVDA's earning expectations and our prices target and strategy...

Dear Members,

The Dollar Index just achieved our lower side target so book profit, but don't buy any new trade. Thirty-year bond is close to achieving our higher side target of 118-00. 

Our view on commodities is to remain very mixed from next week, this week expect both side volatility. Let's talk about NVDA.

Today, markets opened lower, and the selling pressure has continued since the opening bell. Everyone is waiting for NVDA’s earnings report, which will guide tech and semiconductor stocks. If the earnings are below expectations, or if we see soft comments from Jensen after the earnings regarding the fourth quarter, then the stock can plummet big. However, we do not see NVDA going below $423 in any circumstances.

Today, NVDA will be announcing its earnings. It is our top pick for 2023 and 2024. I am sure all of you must be holding longs in it. It can gain big value after the earnings report. We see robust earnings and may revise them further. Those who would like to buy a call can take one at $550 and sell a put of $440.

We are expecting NVDA to move more than 10% higher on Tuesday after the market closes. It is the Moon that is stopping us, otherwise, we see a $128 move in NVDA today.

If we are wrong in our view, and if NVDA moves lower after the market closes, then buy aggressive longs on Wednesday.

Sell the put options of NVDA of $400 of June 2024 and collect the $22.00 premium as it won’t test this level.

Also, one very speculative bet will be buying the $610 call option for January and March $6.00 and 16.65.

Small hedging trade which is buying put options of $480 expiring on 1 December is trading at $14.00 and buy call options of $512.50 at $15.15.

Allocations in NVDA Trade: Whatever amount you want to allocate for NVDA earning trade, here your strategy should be: Invest 70% of the money in buying a call and 15% in buying and keep 15% cash to buy NVDA if it goes lower.

Overall, our view is supportive/positive for NVDA. We are recommending staying long in TQQQ and SOXL.

There 95% probability of NVDA going higher and, 5% chance that it may go down as per current Astro combinations of NVDA.  

Thanks & God Bless


Mahendra Sharma