With a strong report NVDA shot up again in aftermarket trading but the big question is will it be enough to lift the whole market? Yesterday was a bit of wait and see (this chart shows how it was basically flat) so this morning we will see where the dust settles.
This chart image is courtesy of FINVIZ.com a free website and shows us how it moved on the most recent trading day.
Looking at a weekly chart to get the bigger picture the trend is holding on but the recent pull back shows the momentum of the trend starting to wind down. Even if NVDA can give the broader market a short term lift, sign are showing the rally running out of steam. We can see that more clearly on the Percentage Price Oscillator or PPO at the bottom of the chart. When the lines in the PPO cross it is a telling signal, we can use to find a trade. To get more information on the PPO, click here.
The PPO on this chart the black line is BELOW the red indicating a BEARISH trend. The stock price in this example is $662.63. If price goes DOWN to $662 you could consider a PUT option.
We are always looking for ways to minimize risk and increase our potential profit when we trade. Options are a great way to do just that.
If you were trading options and selected the 650 PUT option strike, you would pay a premium of around $10.18 for the Dec 19th expiration, or $1018 for the 100-share option contract. If the stock price moves to 650 the premium is apt to go up about $4.00. Your premium of $1018 plus $400= $1418. That is a profit of 39% over a short period of time.
To see a short video with more information on how I transformed my life with options trading, click here. I am grateful for how options have helped me, and it has inspired me to teach traders like you what I have learned.
I love teaching and sharing. It is my “thing”.
Stay positive and know you can do this. Knowing creates positive results! A part of the abundance process is letting go of anything negative, which creates space to receive.
I wish you the very best,
Wendy
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