Trade Alert - (NVDA) April 4, 2025 - STOP LOSS - SELL

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) – STOP LOSS

SELL the NVIDIA (NVDA) April 2025 $90-$95 in-the-money vertical Bull Call debit spread at $3.60 or best

 

Closing Trade

4-4-2025

expiration date: April 17, 2025

Number of Contracts = 25 contracts

We are only two days into the worst trade war in 95 years and tech is getting sold the hardest because it is the most over-owned.

Now more than ever, maintaining strict risk control is crucial to preserving your capital.

We are at August 2024 lows right now for (NVDA).

I am therefore selling the NVIDIA (NVDA) April 2025 $90-$95 in-the-money vertical Bull Call debit spread at $3.60 or best.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 10 cents with a second order. 

If you don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like $3.60, $3.50, $3.40, and $3.30. You should get done on some or all of these.

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 $95 by the April 17 option expiration in 9 trading days.

Here are the specific trades you need to close this position:

Sell 25 April 2025 (NVDA) $90 calls at………….……….......$9.00

Buy to cover short 25 April 2025 (NVDA) $95 calls at……$5.40

Net Proceeds:………………………….………..………......…........$3.60

Loss: $4.60 - $3.60 = $1.00

(25 X 100 X $1.00) = $2,500.

 

 

 

 

 

To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually, or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.