NVIDIA (NVDA) – My PUT Options Position Explained

I opened a medium-term bearish position on NVDA by purchasing PUT options.
Here’s the full breakdown of the idea, entry logic, and projected targets.

🧠 Why I Entered the Trade

NVDA formed a clear Head & Shoulders (H&S) reversal pattern on the 4H chart — one of the strongest technical reversal signals after an extended bullish trend.

The neckline has now been broken, validating the structure and confirming bearish momentum.
The rejection from the right shoulder, combined with weakening RSI and loss of key market structure, provides additional confirmation.

🎯 My PUT Options Position

I purchased PUT contracts with a defined risk and leveraged downside exposure.

Break-Even Price: ~129 USD

This is the key level where:

the option premium is fully recovered

the position shifts from “loss” to “profit”

As long as NVDA trades below 129 USD before expiration, the position begins generating profit.

💰 Profit Projection

My profit target zone is around 102 USD.

At that level, the trade yields approximately:

➡️ +77,000 USD profit

This aligns with:

the measured target of the Head & Shoulders pattern

previous demand zone turning into resistance

Fibonacci extensions

a full correction of the last impulsive leg

📌 Technical Breakdown

H&S target: ~160 → ~130 → projected extension toward 102

Break-even: 129 USD

FXDoctor target: 102 USD

Trend structure: Major lower lows forming

Momentum: RSI breakdown and bearish continuation signals

The chart clearly shows a potential shift from a hyper-parabolic bullish phase into a deeper correction — a move that benefits PUT buyers with asymmetric risk/reward.

🧨 Summary

I’m holding PUT options on NVDA

Break-even: 129 USD

Projected profit: ~77,000 USD at 102 USD

The trade is based on a clean and validated Head & Shoulders reversal

NVDA is showing early signs of a much larger bearish correction