BY ANDREW GIOVINAZZI
March 8, 2024
Yo Pit Crazies,
Broadcom Corp (Ticker: AVGO) earnings came out after the close and the stock went down $40.00 and popped right back up after the call.
Where was Nvidia Inc (Ticker: NVDA) after the close? Up another $11.00.
The dang stock keeps getting closer to $1000. Last year it was $250.
AI might replace apps in phones.
There goes that revenue stream for Apple (Ticker: AAPL) and Alphabet Inc (Ticker: GOOGL).
Massive servers to process AI is right in NVDA’s wheelhouse.
NVDA 20 Day Chart
The market already knows all this and is betting accordingly.
The question is how much?
NVDA is going to $1000, How do I know?.
The Law of Big Round Numbers is too hard to ignore
It is my favorite market psychology book.
The Boy Plunger in his way said when a stock gets close to a big round number, bulls and traders can’t help themselves and buy it up.
This creates a natural target and inflection point.
I call it a magnet. NVDA is too close now to $1000 not to get there. In OP Pro I spent $2000 on strangle.
I will hold it for at least 1 day. If the crazy upside momentum continues I will hold it for more than 1 day.
By keeping my time frame small, I limit the risk on a $2000 premium trade to $150.
The trade was already up $150 by the close Thursday.
Here is to a wild Friday.
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To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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