Samwise Quick Reference Handbook
To streamline our daily blogs and conserve space, we’ve organized key resources into a convenient, collapsible dropdown menu below. A sort of Quick Reference Handbook if you will -- as our friends in aviation might call it. By clicking the menu below, you’ll have qu...
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Hey Sam, so all this is pretty unexpected or unusual right?
Since we sold those NVIDIA spreads at 127 and it’s now almost 20 points higher without a proper pullback?
So not unusual. Nvidia did have multiple pull-backs, they were just smaller. That Nvidia trade is over. We’re no longer interested in buying back into that spread. Instead, we’d put on a different trade altogether.
The next Nvidia trade I want to put on is a short trade if Nvidia happens to push well into overbought territory. If it gets deeply overbought, then we’ll buy a put-spread in Nvidia to play the pull-back. Then we’ll get long a different call-spread to play the ensuing oversold trade.
I can appreciate the analysis and all the work. However I would prefer not to endeavor into this kind of trade. Usually when I get the itch for rock-and-roll strategies I go the paper-trade route.
Alternatively, we could do a Baratheon-style short trade with a (small) put spread.
For example, the Sept 19 520-510 put spread would cost approximately 2.20 $ at QQQ=540, good for 200% on a drop towards 480 $.
P.S. Think of it as a “loafer” position.