Buy Alert: October 23, 2015

| October 23, 2015

Buy Alert:  October 23, 2015

 

Trade Details

Buy NVIDIA (NVDA) November 20th 28 Puts for $1.30 or better (lower)

 

Why?

I generally don’t like to bet against positive momentum stocks, but NVDA is looking overpriced heading into earnings.  Big name tech stocks with recent, impressive earnings are propelling the tech sector higher, and we’re seeing a bit of extra “froth” at these levels.  I like NVDA for the long-term but I believe a short-term pullback could be on its way in the next couple weeks.

We’re going to buy November puts.  Conservative investors can take profits at $26.  Aggressive investors can hold down to $24.  For risk control, conservative traders should exit at $30, while more aggressive traders can hold to $32.

 

 Recent Activity

NVIDIA

 

Category: OTW Buy Alerts