A pullback to $120 would be a significant drop, considering Nvidia’s recent price action. While anything is possible in the market, such a steep decline might require a broader market correction or significantly negative news.
Strategy Suggestions:
• Dollar-Cost Averaging (DCA): Instead of betting everything on the earnings report, you could gradually build a position over time to reduce risk.
• Options: If you’re leaning towards Nvidia exceeding expectations, you could consider buying call options to limit your downside risk.
• Wait for the Report: If you’re concerned about a pullback, you might want to wait until after the earnings report to see how the market reacts.
In Summary: Buying before the earnings report is a higher-risk strategy that could pay off if Nvidia beats expectations. However, if you’re concerned about a potential pullback, a more cautious approach might be prudent.
My Take/Conclusion:
I will be taking the more prudent approach to see how the market reacts after the earning report as I am expecting a pullback even before the actual earning report.
Comments
A pullback to $120? That’d be wild! Holding off until after earnings might be the way to go.
Options are a good hedge if you think Nvidia will crush it, but I’m cautious before earnings.
Waiting for the dust to settle after earnings seems smart—better safe than sorry