Trade Alert – (NVDA) May 14, 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) June 2025 $140-$145 in-the-money vertical Bear Put debit spread at $3.60 or best

 

Closing Trade

5-14-2025

expiration date: June 20, 2025

Number of Contracts = 25 contracts

As much as I hate to come out of this short position here, discipline is discipline. We are seeing twice-a-century market volatility, but a stop loss is a stop loss.

(NVDA) shares have risen 55% from the bottom, receiving a massive boost from the surprise wind down of the China trade war.

It also helps that restrictions on high-end chips to Saudi Arabia were lifted, allowing for and immediate sale of 18,000 Blackwells. No doubt, some of these chips will end up in China, as the Middle East has long been a transshipment point for sanction busting. It, however, does give a further boost to (NVDA) shares against our short.

I am therefore selling the NVIDIA (NVDA) June 2025 $140-$145 in-the-money vertical Bear Put debit spread at $3.60 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 10 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  $3.60, $3.50, $3.40, $3.30, and $3.20. You should get done on some or all of these.

(NVDA) is the most overowned 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 June 20 option expiration in 34 trading days.

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

Sell 25 June 2025  (NVDA) $145 puts at…………..……….$14.00

Buy to cover short 25 June 2025 (NVDA) $140 puts at $10.40

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

Loss: $4.40 – $3.60= -$0.80

(25 X 100 X -$0.80) = $2,000.

 

 

 

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.