DailyPlay – Opening Trade (NVDA) & Closing Trade (ADBE) – November 26, 2024

Closing Trade

• ADBE – 41% gain: Sell to Close 2 Contracts (or 100% of your Contracts) Dec 20 $475/$495 Call Vertical Spreads @ $13.90 Credit. DailyPlay Portfolio: By Closing both Contracts, we will receive $2,780.  We initially opened these 2 Contracts on November 5 @ $9.85 Debit. Our gain on this trade, therefore, is $810.

NVDA Bullish Opening Trade Signal

Investment Rationale

NVIDIA Corp (NVDA) recently broke out above its $135 resistance level and has since pulled back to a support level, presenting an attractive risk/reward setup for bullish positions.

While trading at a premium with a forward P/E ratio of 33.26x versus the industry average of 19.76x, NVIDIA boasts superior metrics, including expected EPS growth of 63.85%, revenue growth of 56.04%, and net margins of 55.69%. These figures underscore its significant upside potential despite the higher valuation.

NVDA – Daily

Trade Details

Strategy Details

Strategy: Long Call Diagonal Spread

Direction: Bullish Call Diagonal Spread

Details: Buy to Open 1 NVDA Dec 13/Jan 17 $124/$148 Call Diagonal Spread @ $15.38 Debit per Contract.

Total Risk: This trade has a max risk of $1,538 (1 Contract x $1,538) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $1,538 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to bounce off recent support.

1M/6M Trends: Mildly Bearish/ Bullish

Relative Strength: 7/10

OptionsPlay Score: 106

Stop Loss: @ $7.69 (50% loss of premium paid)

View NVDA Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View NVDA Trade