I’ve been busy with work and life lately so I haven’t had a lot of time to write and trade. Yesterday I went long NVDA again because it made a new all-time high. NVDA earnings beat expectations all around and they raised guidance for the next quarter. Then they announced a 10:1 stock split. All signs keep pointing to this stock going higher. My guess and this is only a guess, is that it will reach near $1100 before splitting and then go back to the $300 to $400 range pronto. ...
My goal in with trading is to execute flawless trades. Seek the best entry, manage my risk, and exit with profit. Some of my trades are better than others but this week I bought 5 AMD calls and 5 COST calls. I’m still watching my MSFT diagonal put spread, with my first short put option expiring at the end of the week. Granted, if I get assigned (which is a low probability) I’ll just sell covered calls on those 100 shares. I do have a protective long put in MSFT to act as a back stop to selling “premium.” I don’t know I’ll end up doing this for the long term but I’ll keep this position open till end of May and sell weekly puts against it. ...
Markets had an interesting week, especially if you were trading the #AI stocks like NVDA and AMD. Both of those darlings sold off. NVDA looks to be firming up but it’s too early to tell. AMD is heading lower and I expect it to test the $180 level. I’d become a buyer around there. After transferring my brokerage account over to Interactive Brokers (referral link), I put on a single #options trade. I sold my first put to collect premium and bought a long dated put for insurance on MSFT. This is called a diagonal spread trade and I’m banking that MSFT will climb higher here. ...
My plan is to stay out of the market today. There was some violent sell off on Friday in the semiconductors. All the stocks and ETFs I follow sold off and there were a lot of shooting starts or bearish engulfing candles. Several of the indices are looking tired too, the S&P500 has a bearish engulfing candle as well. But MSFT is hanging in there, that’s one that I want to bet on for the long term and I might be increasing my long term holdings of it. ...
This is the start of my weekly market reviews for my trading journal. This is my digital watering hole, where I can celebrate wins and commiserate losses. It’s where I’ll work hard to figure out my new trading strategy and find opportunities in the market. I’m an old trader, definitely not a bold trader. What a week! I sold my stock holding in NVDA for a 20% profit and closed out all my AMD and COST calls. I made 68% profit each for those option trades. Options trading is insane and you can make sick money with it. Of course, you can lose sick money with it too. ...
I bought a call for COST, strike price 900 for June 21st expiration. The strategy behind buying these calls is this: earnings are due for Costco on Thursday and I expect good results. On top of that, COST has been one of my best long-term performers and I wanted to make some extra income from its strong trend. AMD closed down yesterday and NVDA managed to close up. Yesterday was a down day for the market but these two hanging tough in the face of the sell-off means the momentum is strong. ...
Now that I’m an active trader again I’m going to restart my semi-daily trading journal. I do this to keep myself sane spot where I make mistakes and learn to correct them. I’m long NVDA and it’s been a rocket to the moon. I got in around $750 and I expect it to hit $900 first before peaking out around $1,000. Traders love round numbers and I’m very wary of them because price action could fail around there. ...
Is NVDA peaking? From today’s chart, it looks like it made a hammer on lower volume, so your guess is as good as any despite what CEO Jensen Haung thinks. Sure NVIDIA’s guidance is rosy and very positive, they believe that this trend will continue for the next 5 years at least! My question is, are you surprised by his sentiment? I mean everyone is upgrading the stock to crazy price targets because NVIDIA had a blowout quarter, of course, this will continue ad infinitum. Everything is awesome until one day it isn’t anymore. ...
There are a few rules I follow religiously if I’m focusing on trading a short term horizon. I always sell half when I had an amazing run and let the other half run, and I always reduce risk right befor a stock’s earning call; even if the call is expected to be good. I ended up closing all my NVDA positions on Tuesday. In the case of NVDA’s earnings yesterday, all evidence was pointing to a great earnings call and they delievered. NVDA earnings beat everything forecasted and they gave some strong guidance for the quarter ahead. As I write this post, it’s trading up almost $100 in the pre-market. ...
I think the AI hype is catching up with momentum and trend traders. Everyone was (is) looking for the next best NVDA opportunity so they latched onto SMCI. Honesty, I have no idea what SMCI does but the market gossip/chatter was that it does “AI” and is into computer hardware. SMCI came across one of my “all time high after market close” scanners and I checked it out. It was doing pretty well before the “AI bros” got a hold of it and then it went price parabolic. It was going “to the moon” because people thought it had something to do with AI. Hint: It doesn’t. ...