via WSB trader:
esterday was the final Friday before NVDA’s earnings report.
Honestly, I don’t even want to speculate about how it’ll turn out. What I do know is that, regardless of the outcome, I’ll have an edge against both those betting on the continuation of the AI rally and those anticipating a bubble burst.
I’ve set up a win-win strategy. I bought 8 09/15 Calls at $475 and sold a few 08/25 Calls for a certain price.
If NVDA does climb post-report, which I find doubtful, I’ll profit from the calls I’ve purchased. Of course, I’ve hedged against the opposite scenario, which I believe is more likely – NVDA dropping below $400. For that, I’ve secured 2 ratio-spreads (1:3) from $375 to $300.
All in all, I ended up with a credit of $4376 on an allocated $50k for this strategy. Normally, I’d allocate around $30k, but I made an exception for NVDA.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.