By Licia Leslie
November 17, 2024
Hi Shoppers,
Nvidia (Ticker: NVDA) has earnings on Wednesday and it could be a catalyst for a big move in the market.
There is a way to take advantage of a move prior to the announcement.
The Direxion Daily Semiconductor Bear 3x Shares (Ticker: SOXS) is looking primed for a breakout:
SOXS trades higher as the semiconductor stocks trade lower.
I think once it trades over $25.50, it will trade up to the 200 day moving average at $28.37.
The options premiums or prices are a bit high reflecting NVDA’s earnings announcement.
If you go out to Nov29, the implied volatility is lower than this week’s.
The Nov29 26 calls are your best bet.
Be sure to wait for SOXS to trade over $25.50 and you may want to exit before the NVDA earnings announcement.
Use a close below $25 as your stop loss.
Trade Review
Amazon (Ticker: AMZN) gapped down before we could even trade it! If it does not hold the $200 support, I think it will trade down to $196.44.
Thank You For Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
See what's hot at option pit
CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain