BY MARK SEBASTIAN
February 28, 2025
Hey Traders,
Wow!
That midday turnaround was off the chains!
We went from spending most of the day in the plus column to down 94 points in what feels like only a few minutes
The NVDA earnings were not that bad … but in this environment of bad sentiment, okay is not good enough.
I expect the stock to be down more, albeit not like Thursday.
I expect option prices to plummet.
Once that happens I am going to put on an NVDA trade in Special Situations and I expect it to work quickly
If you are not in Special Situations … click here to join.
First, Let’s Recap Yesterday’s Trade
UGH.
We were so close to out of half of this one. I saw the spread trade up to 1.90 … just not 2.00.
The blue circle happens to coincide with NVDA falling apart at the seams.
I don’t think that will happen today, but we have PCE.
…Today’s Outlook
We are in no man’s land.
The S&P 500 has about 50 points to reach the 150 DMA and about 200 points to the 200.
We could touch one or both of those.
At the same time, VIX was soft on Thursday. And markets – despite the selling – never really panicked.
I would not be shocked to see things rally …
I am going to play today by ear post-PCE.
Call Ted if you aren’t currently a member – 888 872 3301.
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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