Todays writing is coming earlier, and it is intentional. It’s no great secret that NVDA is reporting after the bell today, and many market enthusiast are saying ( rightfully so ) that this is by far the most anticipated earnings announcement in history. That speaks volumes. The market is expected to go either way that NVDA does today. The expected move is only 7%. Options traders ( they seriously matter on this, they are the backbone of NVDA’s pricing ) have $900.00 as the key level should it fall. $850.00 would place it in Oversold territory. The upside however has all eyes on that $1,000.00 mark. That is barely 5% from the current price.

Those aren’t rules, those are levels. Having a Written Investment Plan or a Trading Plan with set rules is what keeps us out of trouble. In my Options Trading career I have had months, even weeks, and a few times days, where I have made more money than I ever could of in one year working my previous jobs. To the flipside I have also had once or twice that I have lost that much, why? Or how? Because I didn’t follow the rules.

One of my rules is to reduce exposure going into earnings, especially when it’s as big as NVDA. So today I did that, I took existing profits on 1/2 of my NVDA positions. I don’t tell others what to do, I am simply sharing what it is I did and why. If it pops I can re-enter, also with lower IV ( A HUUGE plus in Options Trading ) those trading the common stock can’t garner that added benefit, it only exists in Options.

Options are not like stocks where it’s a 50 / 50…. Options traders can reduce risk while remaining long, and also add gains with little or no price movement. But whether it’s with common stock, the Options or otherwise, trading / investing with out a written trade plan isn’t really investing, it’s still gambling at best.

Invest wisely, live charitably and be well

Brother Bill

DISCLAIMER: All content provided in this newsletter, blog, webinar, video, chart, communication is for Educational and Entertainment purposes only. Nothing included or mentioned is meant to be construed or used as trading / investment / financial advice. Trading / investing carries risk of loss, losses can and do occur. NO recording aloud…Know your risk and risk of loss before taking on any financial endeavors. Past performance is NOT a guarantee of future success. I am NOT a licensed or registered financial advisor or tax accountant. Prior to making any trading / investing /  financial decisions you should always consult with your licensed and registered financial advisor and tax accountant. There are no recommendations or solicitations  to buy, sell or hold any stock, future, options or bonds or any other financial entity in this newsletter. Nor are there any recommendations on any type or way or method to trade / invest. You do not have permission to redistribute this newsletter without my written permission first.