NVDA Is Still The King

NVDA has been the most important stock over the last 2+ years of this bull market.

And we don’t think that is going to change anytime soon.

Since the bear market low on October 14th 2022, NVDA is up over 1,000%.

Is it unreasonable to expect this thing continues to go higher?

The short answer is no.

The long answer is absolutely no, it’s not unreasonable to think NVDA can go higher.

As a matter of fact, our money is on the fact that it most likely will go higher.

And it’s already starting to right now:

The problem with expecting this not to continue to breakout is that the implication suggests that this bull market is likely over.

A couple of weeks ago everyone was worried about what would happen if the semiconductor industry broke down against the broader market.

And while that was an important discussion to have, the fact is that the semiconductor industry did not break down against the broader market.

Instead, buyers dug in exactly where they had to, and semiconductors have now outpaced the S&P 500 for over a month.

That’s important information that you need to weigh against your decision-making process, mainly whether or not it’s time to get long semiconductors again after a weak summer.

After weighing our options and the evidence, we decided to buy NVDA for the first time since early 2024.

What we found was not only an opportunity based off of the larger picture (semiconductors not breaking down against the broader market), but also the technical setup of NVDA which gave us a clearly defined high R:R trade and an opportunity to play an incredible options setup.

When we went out to look for the appropriate contracts to buy, we found our targets matched up with deep discounts on the options chain:

What you’re looking at is the options pricing history over the last six months of the January 17th 2025 150 Calls for NVDA.

At the beginning of the summer these contracts cost over $1,600 a piece.

Last week we were able to buy them for under $600 a piece.

We have the same underlying trade thesis as the guys and gals who bought them at the beginning of the summer (NVDA will breakout into new all-time highs) but we’re getting them for over a 60% discount.

That’s how we like to trade inside of The Trading Initiative:

• Strong stocks with an awesome setup,

• Relative strength against the broader market,

• Deep discounts to limit our risk substantially while increasing our potential rewards.

If this is something that makes sense to you, I encourage you to check out our market research.

We take trades like this all the time.

Click here to see all the perks that come with joining our market research subscription.

What do you think about the semiconductor industry and NVDA?

Do we break out into all-time highs again? Or is this all an epic bull trap to catch liquidity at the top before the breakdown?

We’ll find out soon,

Hamilton

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