To The Moon

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.

  Data source: Tiger Trade

  Data source: Tiger Trade

• $Amazon.com(AMZN)$ 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.

  Data source: Tiger Trade

  Data source: Tiger Trade

• $Microsoft(MSFT)$ had nearly 10 times of splits since 1986, each attracting retail investors with its price drop post-split.

  Data source: Tiger Trade

• $Tesla Motors(TSLA)$ 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.

  First split of Tesla, Data source: Tiger Trade

  Second split of Tesla, Data source: Tiger Trade

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.