Trade Alert - (NVDA) April 17, 2025 - EXPIRATION AT MAX PROFIT

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

 

Trade Alert - (NVDA) – EXPIRATION

EXPIRATION OF the NVIDIA (NVDA) April 2025 $70-$75 in-the-money vertical Bull Call debit spread at $5.00

 

Closing Trade

4-17-2025

expiration date: April 17, 2025

Number of Contracts = 25 contracts

Because we have the good fortune of six positions expiring at max profit on the Thursday, April 17 option expiration day, I am going to start feeding these out now.

Like all successful trades, this one looks stupidly cautious with 20:20 hindsight and (NVDA) trading at $112.16. That puts us $37.16, or 49.54% above the nearest $75 strike price.

As a result, you get to take home $1,250 or 11.11% in 9 trading days.

Well done and on to the next trade.

You don’t have to do anything with this expiration.

Your broker will automatically use your long position to cover your short position, canceling out the total holdings.

The entire profit will be credited to your account on Monday morning April 21 and the margin freed up.

Some firms charge you a modest $10 or $15 fee for performing this service.

The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock-solid balance sheets.

NVIDIA is so far ahead of the competition that no one will catch up for years. Its top-end Blackwell card sells for $70,000.

What the (NVDA) bears don’t get is that the company has a moat so wide it is impossible to cross. Their enormous lead in software is the result of crucial platform decisions made 20 years ago. The key staff are all looking up with ultra-cheap equity options with strike prices around $1-$2.

Santa Clara-based NVIDIA designs and manufactures high-end, top-performing graphics cards, or GPUs. There is probably one in your PC. They are essential in the artificial intelligence, automobile, PC, supercomputing, cybersecurity, and gaming industries.

They are also crucial for national defense. The Biden administration recently banned NVIDIA from exporting high-end chips and their manufacturing equipment to China, which they were using to build sophisticated weapons to use against us. This revenue loss is what has taken the shares down to their current low levels, down 65% in six months.

NVIDIA has long been one of the fastest-growing US companies. Since 2005, its annual net income has soared from $89 million to $9.7 billion.

If the highest growth sectors in the economy are Robotics, AI, and energy storage, (NVDA) is in the sweet spot of every one of these.

And before you ask, NVIDIA is an abbreviation for the Latin word for “envy.”

To learn more about the company, please visit their website at https://www.nvidia.com/en-us/

This was a bet that NVIDIA would not fall below $75 by the April 17 option expiration in 9 trading days.

Here is the specific accounting you need to close out this position:

EXPIRATION Buy 25 April 2025 (NVDA) $70 calls at………….………..$25.00

EXPIRATION Sell short 25 April 2025 (NVDA) $75 calls at……………$20.00

Net Proceeds:………………………….………………….……..………...............…$5.00

Profit: $5.00 - $4.50 = $0.50

(25 X 100 X $0.50) = $1,250 or 11.11% in 9 trading days.