00:00 Speaker A
All right, let’s talk specifics here, Bob. You mentioned Nvidia earnings on deck tomorrow after the close. How do I want to play that through options? What’s the trade?
00:11 Bob
Well, I think there’s a really good way to trade to trade Nvidia through options. You know, the stock is up 33 and a half percent since the last earnings report hit, and a lot of anticipation and excitement, enthusiasm was coming into that print back in May, and really, it was a, uh, it was just a thud of a reaction. But interestingly enough, you know, the way big institutions accumulate stocks, Josh, is they don’t necessarily jump in right after the first print. They set, sit back, wait a little bit for the price to settle down. And that’s kind of what they did in May and early June. And then we saw big institutions starting to come in after the stock real heavily back in June, July, and early August. So, where I’d like to see the, uh, the stock go is to about I’m thinking that the stock can make a run towards 200 over the next couple of months. And with the stock sitting about 181, Josh, I’d like to see the, uh, maybe buying like the October call, the 180 call, a little bit expensive right now. It’s about $11. I would like to maybe sell the 195 call against that, uh, for the same, um, uh, basically the same amount of contracts, get about $3 credit to that, and I can cut my risk by about 27% by buying, uh, by buying that, uh, that calendar diagonal spread.