NVDA--trading near its new all-time high---continues to be strong, technically and fundamentally; want to take another bite. its next earnings date will be late Nov when 143.75, constructed this bullish 30-point PUT spread using 1-17-2025 expiration. collecting a $12 premium in advance buy to open the 150 strike PUT options contract sell to open the 120 strike PUT options contracct. effectively, capping my max risk at $18 (30-12) to win the $12 premium i am betting that NVDA will be above 150 by the close of market on 1-17-2015; thus both legs of the PUT spread will be worthless, and i get to keep all the $12 premium collected
the market has turned against MSFT, after beating estimates on revenue and profit, as well as raising its guidance, it is down 21 today, ~~5% MSFT has announced that it will continue to invest to built an AI moat around its products/services; this has triggers th decline.
MSFT ended up down 26, closed at 406.3, a > 6% drop. when MSFT was trading ~~ 407, sold this bullish PUT spread---using 12-20-2014 expiration buy to open 390 strike PUT sell to open 410 strike PUT collecting $8.15 premium in advance, on the $20 difference in strike price I am betting that MSFT will close above 410 by close of trading on 12-20-2024 defining my max risk to be $11.85 (20 - 8.15)
AMZN reported one day after MSFT after years of large investments of building a moat around its AWS & AI products/service, AMZN reported significant increases in revenue and margin, also raising guidance. AMZN is up 12 so far today, ~ 6% pin-ball action from AMZN has push up MSFT to gain 8 so far today, trading ~~414. critics of MSFT would call it sympathy trading !
from a recent low of 406, MSFT has risen to 422, clearing several technical hurdles. i think that it will be trading above 440 by Jan 2025 expiration, sold another 20-point bullish PUT spread, collecting a premium in advance of $8.8. i m defining my max risk of 11.2 (20-8.8) to win the premium collected buy to open the 430 strike PUT contract sell to open the 410 strike PUT contract at Jan expiration, should MSFT trade above 430, i get to keep the premium below 410, i have to pay $11.2
MSFT dipped down to 418.2 early this morning; my conviction on it remains high, decided to double-down on the 430/410 bullish PUT spread, using Jan 2015 expiration. this time, i collected a premium in advance of $8.45, which defines my max risk of $11.55 (20 - 8.45)
on 5 Oct, made this bullish play on MSFT it has taken a lot longer, than i had expected, to develop; immediately after the 22 Oct ERS, MSFT had dropped to 404 over the past 10 trading days, MSFT has risen from 410 to ~~ 443 have placed a limit order to sell the spread for $22.6; should be filled by Monday
since then, NVDA prices had dropped to a recent low of 127, then bounced upward to the current ~144. NVDA's billionaire CEO will be the key note speaker at the CES conference on Monday, a catalyst to spur more interest in AI and NVDA. i need NVDA stock price, on 1-17-2025, to close above 150
