November 12, 2019  Terry’s Tips Trade Alert – Earnings Eagle  Portfolio   

  

NVDA announces after the close on Thursday, November 14. The options are pricing in a 6.9% move while the recent post-announcement move has been 6.2%.  This gives us decent odds.  We will commit about $3000 to these trades and place the call spreads first:

 

BTO 1 NVDA 27Dec19 210 call (NVDA191227C210)

STO 1 NVDA 15Nov19 210 call (NVDA191115C210) for a debit of $4.12  (buying a calendar)

 

BTO 1 NVDA 27Dec19 215 call (NVDA191227C215)

STO 1 NVDA 15Nov19 215 call (NVDA191115C215) for a debit of $4.12  (buying a calendar)

 

BTO 1 NVDA 27Dec19 220 call (NVDA191227C220)

STO 1 NVDA 15Nov19 220 call (NVDA191115C220) for a debit of $3.92  (buying a calendar)

 

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution

 

Happy trading.

Terry