On Monday’s trading I closed some of my call options on prominent tech stocks when they showed favorable intraday performance, and made a 52% account income.
Closed positions on $NVIDIA Corp(NVDA)$ calls expiring June 21st with a $1300 strike price.
Closed $ARM Holdings Ltd(ARM)$ calls with a $130 strike price.
Closed $Advanced Micro Devices(AMD)$ calls & $Micron Technology(MU)$ calls.
Current Holdings:
I still hold calls on $Amazon.com(AMZN)$ with June and August expirations and varying strike prices to bet the its earnings,
I also hold calls on $Tesla Motors(TSLA)$ with strike price at $195.
And I'm also bullish on blockchain with calls on $Coinbase Global, Inc.(COIN)$ and $Marathon Digital Holdings Inc(MARA)$
My current options have a mix of expiration dates, some with losses, but I plan to adjust positions and close when the market is favorable.
Focus on NVIDIA's Upcoming Split before Friday:
This week, I'm closely watching $NVIDIA Corp(NVDA)$ 's performance pre-split on Friday. With its all time high path, some traders in the options community are buying calls strike at $1200 of $1300.
I did bought calls strike on $1300, Im thinking whether to continue to buy calls at $1300 or sell calls at $1300.
Before i make decisions, i did a historical review for son big techs that did split since 2020: below are my observations:
$Apple(AAPL)$ saw a 42% increase before its 1:4 split in August 2020 and reached a 93% peak within 3 years.
$Amazon.com(AMZN)$ had three splits since IPO, with its stock price increasing 8 times in twenty years post-split.
$Alphabet(GOOG)$ experienced a 28% drop pre-split in 2022 but rebounded since November and reached over 112% by November 2023.
$Microsoft(MSFT)$ had nearly 10 times of splits since 1986, each attracting retail investors with its price drop post-split.
$Tesla Motors(TSLA)$ had two splits since 2020, the first one in 2020 we see stock increase before and post spilts. The second time of splits shows siganificant drop.
Special notes: Usually stock prices rise before the split, but soon fall for a week (with good resistance price), then rise again.
Now come to $NVIDIA Corp(NVDA)$ Last Split:
In 2021, $NVIDIA Corp(NVDA)$ had a 2:3 split on July 20th, with a 32%+ increase before the split.
Conclusion:
Comparing to the upcoming June 10th split, NVIDIA has already seen a 21% increase since the announcement. If the trend is similar to the last split, the target price pre-split might exceed $1250.
As of post, NVIDIA is trading at $1150, the performance before June 10th will be crucial.
Buy call or sell call at $1300? What’s your targets for $NVIDIA Corp(NVDA)$ before split?
Let me know your strategies, thank you.
Comments
”Comparing to the upcoming June 10th split, $NVIDIA Corp(NVDA)$ has already seen a 21% increase since the announcement. If the strong trend is similar to the last split, the target price pre-split might exceed $1250.“
Special notes: Usually stock prices rise before the split, but soon fall for a week (with good resistance price), then rise again.