Reviewing Yesterday's NVDA Trades and Outline Today's Trading Plans

$英伟达(NVDA)$ As what I noted yesterday ： NVDA Pre-Earnings Plunge: Will the Surge in Implied Volatility Trigger a Sell-Off?"

My plan was to sell calls at $800 if the stock rebounded, otherwise to sell puts at $580-600 if the stock price dropped 3-4%.

However, my actual trade that to sell puts at $580 when NVDA stock price was $680. Last night, IV continued to surge, reaching 170% for at-the-money options, compared to the previous day's 140%+. With the stock price at $680 and seeing a put premium of over $3 for the expiring options at a $580 strike, thus I sold puts expiring this week.

Regarding the financial report, it beats all expectations.

The annual revenue for 2023 surpassed $60 billion, a year-over-year growth of 126%. Notably, despite doubling the revenue, the gross margin increased by nearly 15%, reaching a non-GAAP gross margin of 74%.I have to highlight the exceptional efficiency, considering NVIDIA is often considered a hardware company.

Furthermore, non-GAAP operating expenses only increased by 13%, showcasing impressive operational leverage and efficiency, comparable to the best-performing internet companies.

The pre-market trading price has reached $765 and a potential short squeeze, I plan to sell calls at above $800, if IV remains high at the opening market.