Trade Alert - (NVDA) March 28, 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.

Trade Alert - (NVDA) – TAKE PROFITS

SELL the NVIDIA (NVDA) April 2025 $140-$145 in-the-money vertical Bear Put debit spread at $4.98 or best

Closing Trade

3-28-2025

expiration date: April 17, 2025

Number of Contracts = 25 contracts

Every time I sell short shares in Nvidia, I get a torrent of abuse from my customers. How dare I short the world’s most perfect company?

I also happen to know that (NVDA) is the world’s most over-owned stock and when the market gets panic attacks like today, it can go DOWN faster than any other stock. The inflation report out this morning was horrific and is now running at a 4.8% annualized rate. What happens when the 25% tariff hits Nvidia’s $70,000 Blackwell chip?

We have just seen a nice $13 dive in Nvidia shares so I think it’s time to take profits once again. The risk/reward of hanging on for the last two cents is not favorable.

Markets brimming with confidence see earnings multiples expand. Markets wrought with fear and uncertainty trade at discounts. Whether that is a 10%, 20%, or 50% discount is anyone’s guess. But it certainly is not 10%, which is where we are now.

I am therefore selling the NVIDIA (NVDA) April 2025 $140-$145 in-the-money vertical Bear Put debit spread at $4.98 or best.

Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES. Just enter a limit order and work it.

Simply enter your limit order, wait five minutes, and if you don’t get done cancel your order and lower your offer by 2 cents with a second order.

If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like $4.98, $4.96, $4.94, $4.92, and $4.90. You should get done on some or all of these.

(NVDA) is the most over-owned stock in the market. It is the largest position held by virtually all of my followers, largely through capital appreciation. If investors are going to de-risk in the face of today’s unprecedented uncertainty, this is the first name they will hit. This is why the share price has remained virtually unchanged for nine months.

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.

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 rise above $140 by the April 17 option expiration in 25 trading days.

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

Sell 25 April 2025 (NVDA) $145 puts at………….…………......…$36.00

Buy to cover short 25 April 2025 (NVDA) $140 puts at………..$31.02

Net Proceeds:………………………….………..………….…..................$4.98

Potential Profit: $4.98 - $4.40 = $0.58

(25 X 100 X $0.58) = $1,450 or 13.18% in 11 days.

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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