4 Trade Ideas for NVIDIA: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

NVDIA, $NVDA, comes into the week approaching resistance at the all-time high. As it moves the Bollinger Bands® are starting to shift to the upside. It has an RSI rising in the bullish zone and a MACD that is positive and crossing up. There is no resistance above 217. A measured move would target a price of 248. There is support lower at 212.50 and 208. Short interest is low at 1.2%. The stock pays dividend with an annual yield of 0.02% and has treated ex-dividend since March 11th.

The company is expected to report earnings next on May 20th. The May options chain has biggest open interest at the 200 and 195 strike puts. On the call side it is biggest above at the 225 and 217.50 call strikes but below at 200 it is much larger. In the June chain biggest open interest is at the 200 strike on the put side and the call side but to the upside biggest at 220 on the call side. Finally in the July chain open interest is biggest at the 180 strike on the put side and the 200 strike on the call side but again above at the 220 call strike.

NVDIA, Ticker: $NVDA

Trade Idea 1: Buy the stock on a move over 217 with a stop at 208.

Trade Idea 2: Buy the stock on a move over 217 and add a June 210/200 Put Spread ($3.85) while selling the July 260 Calls ($3.60).

Trade Idea 3: Buy the May/June 220 Call Calendar ($8.07) while selling the June 200 Puts ($5.70).

Trade Idea 4: Buy the July 195/225/250 Call Spread Risk Reversal ($5.40).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the bulk of the 1st Quarter earnings in the rearview mirror and heading into next week’s May options expiration, saw equities continue to act strong and tacking on more new all-time highs for the fourth week in a row.

Elsewhere, look for Gold to continue walking the fence between a downtrend and digestion in the uptrend while Crude Oil bounces around in broad consolidation under $100/bbl. The US Dollar Index looks to continue to drift lower in consolidation while US Treasuries continue to hold over 16 month support like nothing is happening. The Shanghai Composite looks to continue a short term uptrend closing in on the 2026 top and a new 11 year high while Emerging Markets push to new highs in their uptrend.

The Volatility Index looks to continue in the normal zone removing all the pressure on equities. The charts of the SPY, the QQQ and the IWM continue to look extremely strong on the longer timeframe with a 6th positive week moving to new highs. On the shorter timeframe the SPY, the QQQ and the IWM also look very strong but with overheated momentum and may need a pause. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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