[Entering LEAPS Position in Nvidia (NVDA)]
Dear Member:
Nvidia (NVDA) is post-split and appears to be forming a reverse head and shoulders. Though the P/E is a little high, the company did surprise pleasantly in its' last earnings report.
I am placing an order to buy to open the Jan '09 $30 calls (OLIAF) at a limit of $10.50. These calls are about $4.60 in the money so the time value is about $5.90. The delta is approximately .74 which means I can expect the call price to move about 74 cents for each dollar the stock moves (up or down).
If filled, I will watch the stock price relative to the 40 day exponential moving average as a key to exit.
DISCLOSURE: At the time of publication, I have no position in NVDA or any of its options.
Sincerely,
Bill Kraft
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