NVDA Weekly Options Trade Plan 2025-03-15
Comprehensive Market Summary:
Price Action: NVDA closed at $121.67. The stock has shown volatility, with a recent uptick on the 5-minute chart, suggesting potential momentum. Volume Trends: The last trading session saw unusually high volume, particularly in the last five minutes, with 35,864,525 shares traded, indicating strong interest or a potential reversal signal. Market Sentiment: Recent news headlines indicate mixed sentiments, with mentions of sell-offs, potential growth in AI sectors, and concerns over tariffs affecting chipmakers. Volatility Indicators: VIX Level: The VIX has decreased to 21.77, suggesting lower market volatility but still above historical norms, indicating caution. Implied Volatility: Option prices suggest moderate implied volatility with premiums between $0.30-$0.50 for weekly options. Bollinger Bands: NVDA is trading above its 50-day moving average but within the upper Bollinger Band, suggesting potential overextension or a possible pullback. RSI Levels: The RSI on the 5-minute chart is at 74.84, indicating the stock might be overbought in the short term. Significant News Catalysts: GTC 2025 conference on March 18 could influence NVDA's stock price due to anticipated product announcements or strategic news.
Market Trend Alignment:
Identified Market Direction: The market shows Bullish signals due to: Recent strong volume increase. NVDA's price above moving averages. Positive news regarding AI stock investments.
Options Strategy Selection:
Strategy: Buy a single-leg, naked call. Strike Price: $135.00 Ask Price: $0.47 Bid Price: $0.45 Open Interest: 70,966 (High liquidity)
Entry and Exit Strategy:
Entry Timing: Enter the trade at market open on the next trading day. Exit Criteria: Profit Target: Sell when NVDA stock reaches $140.00 or the call option premium increases by 75% (to approximately $0.82). Stop-Loss: If the stock price drops below $118.00 or if the option premium decreases by 50% (to approximately $0.235).