![]() ![]() ![]() Expectations are for $1.01 in earnings on $7.42 billion in revenues. The short $220 strike price provides an 8.9% downside cushion to the $241.50 closing price of NVDA.Įarnings are due Feb. Potential maximum risk is $380 per spread if NVDA stock closes below $235 at Feb. Maximum gain on the trade is $120 per spread. This favors incorporating option selling into the overall trade structure. It now stands at the 75th percentile meaning option prices are comparatively expensive. Implied volatility (IV) is up sharply in NVDA options. In a similar vein, an out-of-the-money bullish put credit spread now makes probabilistic sense to fit into a somewhat bullish near-term outlook. I recommended selling an out-of-the-money bearish call spread which proved to be prescient and profitable. 3 I had a short-term bearish viewpoint on an overbought NVDA. Look for NVDA to make a run back to the 20-day moving average area at $285 over the next several weeks. I expect the same to play out once again. The last four times all these indicators aligned in a similar fashion marked significant short-term lows in the stock price. NVDA stock is trading at a large discount to the 20-day moving average. Momentum has fallen back towards the lowest levels of the past year. The nine-day RSI is below 25 and at the most oversold readings of the prior 12 months. Nvidia is nearing oversold readings that have corresponded with short-term lows in the past. Vandita Jadeja recently noted that Citi analyst Atif Malik has put NVDA on a positive catalysts watch following the Consumer Electronics Show. The lowest individual price target is $285. The analysts tend to agree.Ĭurrently, NVDA is rated a strong buy with a $359.17 consensus price target according to TipRanks. Now that NVDA stock has dropped another $37 points since then to trade near $241, some of the valuation concerns may be starting to soften. ![]() He noted the still sky-high multiples that were beginning to scare off investors but remained a long-term bull. InvestorPlace contributor Dana Blakenhorn took a deep dive into NVDA and valuation concerns when the stock was trading at $278 in late December. The recent rise in interest rates has finally brought valuations into question. ![]()
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