Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Bill Griffo will chime in with macro analysis and Andrew Giovinazzi will then finish out the week with a volatility breakdown.

Have a stock YOU want us to review? Email my team here. – Mark

Nvidia Corp (Ticker: NVDA) is on fire in 2023 as having the best picks and shovels to dig out the gold of AI that is sweeping the tech industry.  What does that hot start look like in terms of volatility?

Iv lows of 2023 it looks like.

NVDA chart on top with 30 day implied volatility on the bottom

Let’s see what kind of trade we can dig out of it.

NVDA stock price has slowed down quite a bit

You can say what you want about the banking crisis but it has not hurt the performance of NVDA a bit this year.  NVDA is up around $40 for the month of March and IV has hit new lows.

NVDA even hit lows for the last year in total for implied volatility.  Essentially no traders are betting on a sharp downturn.  The stock is also scarily close to $300.  Cheap upside calendars around the 290 area could work.

NDVA 1 year c chart with 30 day IV on the bottom

The low IV means that noone wants both NVDA puts or calls as some of the straight up move has plateaued.  After seeing this movie enough the stock could easily make a move to $300 which is why I like call calendars.

The low IV also means a put or two to hedge is not a bad idea either.  Markets tend to rally in lower IV conditions and if the top tech stock of 2023 is showing those conditions, I want to lean long via very cheap call calendars.

AG