To The Moon

$NVIDIA Corp(NVDA)$

Thursday's sell-off + Dell's poor earnings causing a drop, perfectly closed out the week. Today's close will likely be in the $1,100-$1,120 range.

By "perfect," I mean for the option market makers, as all the $1,150+ call options got trapped.

Next week, the stock may drift lower, trading in the $1,050-$1,100 range. Selling puts in that $1,000-$1,050 zone, like the NVDA 20240607 $1,050 puts, seems quite safe. $NVDA 20240607 1050.0 PUT$ 

Covercall can choose 1150 ~ 1200,1050 must be short-term resistance $NVDA 20240607 1150.0 CALL$ 

I'll boldly speculate that in order to recoup losses, market makers may orchestrate a Tesla-esque whipsaw pattern for Nvidia next week, oscillating to bleed premiums from both call and put buyers.

Specifically, first a rally to entice call buyers as if breaking out, then a sell-off to lure in put buyers, only to sidewind into Friday's close and trap both sides.

Dell's earnings move was rather boring too. They were just trying to prevent an upside gap in Nvidia on Friday, right? They should've just let it run into earnings then smashed it back down after the news.

The tactical games these players run are just dirty.

$GameStop(GME)$

Last week, the call sellers got caught in the old short squeeze trap. Learning from that pitfall, everyone adjusted this week by avoiding the $19 and $20 calls.

Instead, focus shifted to the 25calls$GME 20240531 25.0 CALL$  with 14,700 contracts in open interest, and the $30 calls$GME 20240531 30.0 CALL$  with 14,500 open interest.

Wait, are we sure those strikes are safe? Those could just as easily get blown out in an after-hours rip, no?