OMG!!! What opportunities does NVIDIA's earnings report bring?
NVIDIA is about to release its earnings report. How should we position ourselves? I bought NVIDIA before and have been holding it, now it's up about 20% $NVIDIA (NVDA.US)$
Let me tell you about the characteristics of this Q1 US stock earnings season. You'll notice that many companies have been hit with a double whammy! Isn't it interesting?
Due to many companies performing well in Q1 2024, compared to poor performance in Q1 2023, they're showing high growth from a low base. This is expected to lead to significant increases. However, by 2025, the momentum for earnings growth is likely to fall short of expectations. Therefore, this earnings season is generally expected to be unremarkable.
In terms of a double kill, the most satisfying options strategy would definitely be a strangle! Currently, the expected volatility for NVIDIA's earnings release is around ±7.48%.
I strongly recommend that the moomoo mobile app also add this feature. I think it's very useful, and everyone who trades during earnings seasons and deals with options should take a look at it. @Team moomoo
In my opinion, based on the current price of 135, choosing a double-sell strategy with a range of plus or minus 15% is likely to be very stable!
During the day, I took a look and saw that each set could collect around $80 in premiums. Since the options double-selling strategy involves the use of leverage, the risk is also relatively high. Therefore, everyone must carefully calculate their position sizes and risk management! The options feature on Moomoo shows a win rate of 95.67%!
In addition to the options double-selling strategy, I've also been researching vertical spread strategies recently. Compared to simply buying a single-leg call option, if you're a high-frequency options trader, I would actually recommend this strategy more!
Why? On one hand, it can reduce your initial cost to open a position. On the other hand, your potential loss is also limited. Of course, the prerequisite is that you need to judge the direction correctly. Recently, I executed a put vertical spread on $Invesco QQQ Trust (QQQ.US)$ , and the returns last week were quite good.
For this earnings season, regarding NVIDIA's performance, I firstly anticipate a double-kill scenario, and secondly, I'm leaning slightly bearish, haha. Even though I hold NVIDIA stock, I believe there might be a bit more downside pressure during this earnings period. One could consider implementing a small spread, for example:
Of course, the risks associated with options are really significant. If you're not confident, I suggest you might want to focus on ETFs related to NVIDIA. I've always recommended the individual stock ETF feature, it's truly excellent! $GraniteShares 2x Long NVDA Daily ETF (NVDL.US)$ $T-Rex 2X Long Nvidia Daily Target ETF (NVDX.US)$
Lastly, let me share my views on the U.S. stock market. I actually lean towards expecting a pullback, so I've also bought a QQQ put vertical spread to hedge my positions. In fact, last Friday presented a very good shorting opportunity, specifically with $Strategy (MSTR.US)$ . It showed a very standard downward pattern. I felt that MSTR holders were in for a drop. Hahahahaha!
As for Tesla, I saw news that Musk is about to enter 'work mode' again, which is definitely good news for Tesla. However, over the weekend, I was looking at Xiaomi's Yu 7, and I realized that Tesla's sales pressure in China will continue to increase. For my mini position, I will consider continuing to hold, but I won't easily add to my $Tesla (TSLA.US)$ position. That's roughly my perspective on this.
Last week, I also reduced my position in $TENCENT (00700.HK)$ calls. I feel the market is due for a correction, so being patient is never a mistake, haha!
Recently, there's another sector worth paying close attention to, which is nuclear energy stocks. I saw that Moomoo also had relevant materials on this, which were very good! The ultimate limit of AI is electricity, and with policy support increasing, this sector is very promising, haha! $Oklo Inc (OKLO.US)$
Additionally, the Opportunities page feature on Moomoo has shared quite a few nuclear energy and quantum computing companies, which is also very good!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Handiyanan : I like the strangle idea around NVDA earnings, but with volatility priced in at ±7.48%, do you think selling premium is really worth the risk?
Keiith : Do you see them as better long-term holds, or just short-term plays around events like earnings?
OneBigBeautifulStock : do a poor man’s covered call
iluvsunniday : The US stock will continue to rally. Summer is reaching.
104270156 : for the tesla and mstr , are you usimg option to short ? thanks
72241773 : this is the ONLY stock to be bullish in. the one I am not getting is $TSLA what is there to be bullish about there. They keep losing sales, if they get rid of Musk then I would understand but until then. NOPE. just buying the shorts stocks likd $TSLQ.
ML Bull Handiyanan : absolutely not. that will evaporate immediately and honestly, the biggest risk is a nothing burger kind of reaction from traders. then you get smoked on both sides
Robert Musella : The 135–137 zone is not noise—it’s the battlefield.
If NVDA holds above this range, bulls control tempo.
Break below 129? Trapdoor risk returns.
This is a positioning war now, not just narrative.