Nvidia Stock Options Analysis | So Many Calls For Earnings Week | Nvidia Stock Price Prediction

Step-by-Step Tutorial: Nvidia Stock Options Analysis

Step 1: Introduction to Nvidia Stock Analysis

• Watch the video titled "Nvidia Stock Options Analysis | So Many Calls For Earnings Week | Nvidia Stock Price Prediction" by Junior Trader for detailed insights on Nvidia stock options analysis going into the earnings week.
• Understand that the analysis is based on technicals, and it is recommended to watch the previous video by the same creator for a head start on Nvidia stock analysis.

Step 2: Technical Analysis Overview

• Note that Nvidia is close to all-time highs, and the overall structure is bullish as long as it holds above the pivotal area of $922 to $914.
• Consider the critical levels such as the trend line, 200-hour moving average, and the range of $922 to $914 that indicate the bullish territory.
• Be aware that if Nvidia loses these levels, there might be a short-term cool-off, but the bulls still have room to turn it around, especially with the 20 and 50-day moving averages in play.

Step 3: Earnings Preparation

• Acknowledge that Nvidia is set to announce earnings on Wednesday, which can significantly impact the stock price.
• Understand that technical analysis plays a crucial role in understanding Nvidia's stock movements, especially leading up to earnings.

Step 4: Options Analysis

• Review the options analysis presented in the video, where green represents calls, red represents puts, and black indicates the last day's closing price.
• Note the concentration of calls at various strike prices, such as $950, $1,000, and $1,050, with spikes at $1,100 and $1,150, suggesting a bullish sentiment in options trading.

Step 5: Potential Price Targets

• Consider the possibility of Nvidia reaching price targets like $1,100 and $1,400 based on the options analysis.
• Understand that the movement towards these targets may depend on the earnings results and analyst price targets leading up to the announcement.

Step 6: Trading Strategy

• Evaluate the options trading strategy based on the technical levels and potential price movements.
• Be cautious about the speculative nature of options trading, especially around earnings, and consider limiting positions or trading after the earnings announcement for reduced risk.

Step 7: Risk Management

• Understand the risk associated with options trading, especially in volatile periods like earnings week.
• Consider the potential outcomes for different options, such as $900 puts if the stock price declines or $1,000 calls post-earnings if Nvidia's stock price rises significantly.

Step 8: Conclusion and Trading Advice

• Acknowledge that trading options involves risks and uncertainties, especially around earnings events.
• Remember that technical analysis may guide trading decisions, but sentiments and market reactions post-earnings can significantly influence stock movements.

By following these steps and understanding the technical and options analysis provided in the video, you can make informed decisions when trading Nvidia stock options during earnings week. Remember to trade wisely and consider the risks involved in options trading.