Trade Alert - (NVDA) August 26, 2025 - TAKE PROFITS

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.

Tech Alert – NVIDIA Corporation (NVDA) – TAKE PROFITS

SELL NVIDIA Corporation (NVDA) September 2025 $154-$158 in-the-money vertical BULL CALL spread at $3.60

Closing Trade

8-26-2025

expiration date: September 19, 2025

Portfolio weighting: 10%

Number of Contracts = 30 contracts

I’m using this mini-rally in Nvidia (NVDA) shares to get out before they issue earnings tomorrow. The earnings should be spectacular, but the volatility means that it is better to take quick profits.

We entered into this stock after one of the most bullish Jackson Hole speeches in recent memory, and tech stocks shot to the upside.

Momentum has spilled into this week with tech stocks doing very well as traders expect a bout of higher inflation to come with the Fed planning to shave interest rates lower and lower.

If Nvidia shares pull back because of weaker-than-expected forward guidance, I would consider that a gift of an entry point into another bullish NVDA position.

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

Sell to Close 30 September 2025 (NVDA) $154 calls at……….…$29.10

Buy to Close 30 September 2025 (NVDA) $158 calls at………….$25.50

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

Profit: $3.60 – $3.30 = $.30

(30 X 100 X $.30) = $900 or 9.09%

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.

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