[Opening Bearish Call Spread on Nvidia (NVDA)]
Dear Member:
Nvdia (NVDA)has been unable to break above a triple top resistance near 37 and has broken down through the up trend line. Stochastics and MACD are both turning down on the daily charts and there is a significant potential in the Jan 37.50/40 bearish call spread. I am placing an order to open a spread by simultaneously buying to open the Jan 40 calls (UVAAH) and selling to open the Jan 37.50 calls (UVAAU) for a net credit (before commission) of $0.75. If filled, this would result in a 42.8% return on risk at January expiration if the stock stays below $37.50 and no adjustments are necessary.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
|
