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I also took on the full risk because if I was wrong, the whole contract would decay and lose value since it’s at the money (ATM).Ī few days into the trade and NVDA was stuck at $700, but it had a 30-minute squeeze and 78-minute squeeze so I held onto it. This was super aggressive and risky, however, I was anticipating a similar pattern to APPL and TSLA when these stocks split. Seeing that NVDA had just broken $700 (pictured below), I decided to buy a butterfly targeting $750 ― BUY +1 BUTTERFLY NVDA 100 18 JUN 21 700/750/800 CALL limit order (LMT). This was also trading higher into the split and it almost doubled! This shows that AAPL was extended but still traded higher into the following three weeks.īelow is a picture of TSLA during its split. Both companies had recently gone through a stock split of their own so I was trying to get an idea of how NVDA may act while undergoing the same process. The first thing I did was run Apple (APPL) and Tesla (TSLA) through my Hot Zone indicator. This got me interested and I started to do some research. News of the NVDA stock split came out in the early part of June which sent its price soaring. So study up on this “Tuesday Trade” and let’s get to work.įor this week’s “Tuesday Trade,” I want to outline my trade in Nvidia (NVDA). Trading is all about finding something that works, and applying it over and over again.
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So, to lead by example, each Tuesday, you’ll get a trade from my trading journal, in which I explain my thought process from start to finish. Identifying what is working is critical - to do more of it. “Tuesday Trade” Journal: One of the most important concepts in trading is to review your work, and learn from the good and the bad.
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