AMD Is Not NVDA

Andrew Giovinazzi

Yo Pit Crazies,

Every bull market has its favorite stocks. I remember the Dot Com boom had a pretty good list. Eventually, some come back to earth or wait until the earnings catch up – sometimes, they run for years.

Right now the darling is Nvidia Corp (Ticker: NVDA), and there is really no equal. NVDA is out-performing Advanced Micro Devices Corp (Ticker: AMD), the next big GPU competitor, by a large margin. NVDA is up 64% and AMD is up 16% over the last 3 months. Those numbers are going to get some play.

Now the long term trend is up.

But what‘s a good trade?

AMD Is Showing Much More Overall Volatility

AMD might make a more interesting trade as NVDA takes some time to catch its breath. AMD was just trading $128, and it was down 6% today. That’s a 96% 1 day realized volatility. AMD options are trading for a 46% volatility.

There’s a trade there!

In a bull market, the overall trend is up, but some weeks can be brutal on stocks that have massive up moves. You just need to be ready for it.

If you want to see how to trade this, come to my live event tonight at 7 p.m. ET.