Market After The Close, Wednesday 20 November
DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
Option Sellers 1, Option Buyers 0. Again.
by Alex King, CEO, Cestrian Capital Research, Inc
As everyone knows, NVDA earnings days are crazy-volatile and it's best to play this volatility with options.
D'oh!
NVDA is currently 2.7% down on Tuesday's close, a nothingburger for so volatile a stock and in particular a much smaller change than the c.7-8% move implied by options pricing. Yet another lesson in why it is usually better to be selling options to degenerates, not actually being a degenerate and scooping them up like they're going out of fashion.
If you'd like to move to the Dark Side, which is to say to learn how to trade options the way market-makers do, not how FinTwit does it - then I suggest you take a look at our "Jay's Options" service. You can read all about it here.
As always, if you have any questions you can reach us anytime using this contact form.