NVDA Possible Option Play - $126 Call expiring June 28, 2024Data Summary:
Open: 123.24
High: 126.50
Low: 118.04
Close: 125.76
Change: -0.81 (-0.64%)
Volume: 820.663M
Last Day Change: +7.65 (+6.48%)
SMA 50: 67.66
EMA 20: 98.03
Pivot Points:
Pivot R2: 131.91
Pivot R1: 128.85
Pivot S1: 120.39
Pivot S2: 114.99
Breakout SMA 21: 65.44
Technical Analysis:
Current Price Movement:
The stock is trading at 125.76, which is above the EMA 20 (98.03) and the SMA 50 (67.66), indicating a strong bullish trend.
The significant increase in the last day (+6.48%) shows strong buying momentum.
Pivot Points:
The stock is trading just below Pivot R1 (128.85), suggesting a key resistance level.
Support levels are at Pivot S1 (120.39) and Pivot S2 (114.99).
Volume:
The volume of 820.663M is significantly high, indicating strong trading activity and interest in the stock.
Preferred Option Play:
Call Option Play:
Buy NVDA $126 Call expiring June 28, 2024
Last Price: $4.10
Rationale:
The stock is showing strong bullish momentum, trading above key moving averages and near the resistance level.
A Call option leverages the potential upward movement towards the resistance levels.
Summary:
Based on the technical indicators and the current price being near resistance levels, a Call option is preferred to capture potential upward movement.
This strategy is speculative and should be considered with caution. Always consider your risk tolerance and consult with a financial advisor before making any trades.
