NVIDIA Earnings: How to Trade and Profit Ahead of the Report

Yesterday, I wrote in this article:

Considering the current uptrend and the "path of least resistance" theory, I anticipate that NVDA might continue to climb on its upcoming earnings report.

In the article, I mentioned that a doji candle has formed, which is an indicator of market indecision, however this also suggests that traders are closely watching the 135-140 level, which is a strong support zone.

Trade the doji candle in $NVIDIA Corp(NVDA)$ on a lower timeframe (1 hour time frame).

Steps for a 1-hour entry:

1. Identify support (which is 140)

2. Identify doji high (around 141.50)

3. When a one-hour candle closes above doji high, this is the entry

NVDA hourly chart

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Often, during U.S. trading hours, a stock's price may already have gapped up. Alternatively, traders can opt to trade during Asia hours if the pre-market shows similar price action.

For example, if the pre-market also closes a one-hour bar above the doji high, this can serve as an entry point.

On November 19, during Asia market trading hours, NVDA was trading around 142-143, which was higher than the doji high of 141.50.

To illustrate the potential of using DLCs (Daily Leverage Certificates) listed on SGX, which are tradeable during Asia market hours:

• The Nvidia 3x Long DLC ( $NVDA 3xLongSG261006(NVIW.SI)$ ) was priced at approximately S$7.40 while Nvidia shares were trading at around US$141.30.

• By the morning of November 20, Nvidia's share price had risen approximately 4.6% to US$147.80, and NVIW increased to S$8.40, marking a 13.5% gain. This translates to a S$100 profit for a minimum lot size of 100 DLC units.

(Please note that P&L is calculated before costs and fees. Investors should be aware that losses can similarly be magnified in the opposite direction.)

Trading NVDA earnings

Investors anticipating a continued rise in Nvidia’s share price can consider the 3x Long DLC ( $NVDA 3xLongSG261006(NVIW.SI)$ ), while those expecting a decline can use the 3x Short DLC ( $NVDA 3xShortSG261006(NVDW.SI)$ ) to take a bearish position.

For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook 

Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.