Nvidia outlook calms nervous investors, shares rise 5%

Nvidia’s FY19 Q4 results showed EPS $0.80 vs est. $0.78 and revenue $2.21bn vs est. $2.20bn. FY20 revenue outlook is flat to slightly down which was the positive upside surprise showing that the company has confidence in a rebound. In order for Nvidia to deliver this, the Gaming  segment (which includes GPU sold to cryptominers) has to stabilise while the growth decay does not worsen in the Datacenter and Automotive segments. Investors responded positively to the result, sending Nvidia’s shares up 5% to end at $162.75. At one point the share price reached $168.88, up 9.3%. 

As of the last traded price in the after-market session our long strangle position is out of the money. When the shares start trading later today the key take is to gauge the direction. Key is for the shares to quickly try to regain the highest prices from the after-market session. If shares fail to this and the shares look weak on the demand side then close the position (even with a small loss). 

Nvidia’s share price the past two days including after-market trading: