NVDA - play the run up to earnings

2018년 5월 4일

Nvidia has seen massive growth in the past year. They will be announcing Q1 earnings next Thursday (May 10) after close. Expectations are very, very high, and the run up to the earnings call can be explosive, as well.

However, with expectations so high, it also becomes more risky to hold a position through earnings (EPS estimate is almost double that of Q1 2017, and that was back when NVDA was trading for about $100). With how volatile this earnings season has been so far and how volatile post-earnings has been for NVDA in the past year, I would expect a big jump on Friday (May 11).

The play:
Long - close positions before earnings on May 10, or when it hits $245 to lock in profits, whichever comes first. If you love living life dangerously, you can optionally (no pun intended) buy a straddle/strangle that expires the next day and hope that a big price swing happens.

Disclaimer:
I am long NVDA (June calls)

2018년 5월 7일

거래청산: 타겟 닿음

That was quick. I'm going to lock in over 100% gained on June calls.

It is becoming even more risky, with NVDA trading so close to ATH. While there is a good chance the earnings report sends it to new highs, there is also a good chance that investors aren't happy enough with what they hear in the call.