Investment and Options Strategist
Summary: Our latest article provides a comprehensive overview of 4 distinct options trading strategies. These strategies are designed to capitalize on the anticipated decrease in volatility following Nvidia's earnings release. Each strategy is meticulously crafted to cater to a specific market outlook, offering a robust toolkit for traders. This article serves as a valuable resource for both novice and experienced traders, aiming to enhance their trading acumen and decision-making process in the dynamic world of options trading.
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Today, our focus is on Nvidia, which is scheduled to release its earnings report after the bell. This article outlines 4 options trades that can be set up today, prior to the earnings release. These strategies are designed to leverage the expected decrease in volatility, potentially leading to maximum profits at the opening tomorrow.
The strategies are categorized based on market outlook: bullish, neutral and bearish. Each strategy is a credit strategy, intended to benefit from the earnings announcement tonight. The objective is to establish a position before the close, to fully benefit from the potential decrease in volatility.
The expected move is a crucial factor in these strategies. The expected move of NVDA (on November 20th, for expiration November 24th0 is plus or minus $36.59) Each strategy takes the expected move into account, allowing you to choose the direction based on your outlook. Whether you’re planning to trade today or learn for future earnings events, these strategies provide a practical guide to options trading around major corporate announcements. Let’s proceed to discuss these strategies and prepare for the world of options trading.
Important note: the strategies and examples provided in this article are purely for educational purposes. They are intended to assist in shaping your thought process and should not be replicated or implemented without careful consideration. Every investor or trader must conduct their own due diligence and take into account their unique financial situation, risk tolerance, and investment objectives before making any decisions. Remember, investing in the stock market carries risk, and it's crucial to make informed decisions.
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In conclusion, this article presents a range of options trading strategies to leverage the expected decrease in volatility following Nvidia’s earnings release. These strategies, are categorized based on market outlook and are designed as short volatility strategies. While these strategies provide a practical guide, it’s crucial to remember that investing in the stock market carries risk, and careful consideration is essential when planning options trades. Happy trading!
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