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Proactive Spreads, May 15th – NVDA

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The broad markets are undergoing the lowest volatility in over a decade.

Heck, this past Friday the S&P 500 only moved 0.22%. That’s the smallest move in over three years.

Of course this won’t last. Volatility will expand… it may happen later than you think though. I remember having similar discussions about the market back in 2015, and it took another three months for the market to move.

For me, the best bets still lie in stocks that have moved on their own… catalyst plays based off of earnings. If you simply look for stocks that have had large moves and are establishing a new equillibrium, you can easily buy the pullbacks and sell any parabolic moves.

Trade #1: NVDA

The stock moved big on earnings…. as it has a tendency to do. It’s now ripping to new all time highs, and has seen a pretty strong move over the past few days.

Look for any pullback for an entry point.

Trade Setup

Expected Price: 125

Sell to open NVDA Jul 110/105 Put Spread 

Tier 1: Open at 0.80, Close at 0.30

Tier 2: Open at 1.10, Close at 0.80

Tier 3: Open at 1.40, Close at 1.10

 

Disclaimer

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