Nvidia (NVDA) Offering Possible 41.84% Return Over the Next 9 Calendar Days

Nvidia's most recent trend suggests a bullish bias. One trading opportunity on Nvidia is a Bull Put Spread using a strike $515.00 short put and a strike $505.00 long put offers a potential 41.84% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $515.00 by expiration. The full premium credit of $2.95 would be kept by the premium seller. The risk of $7.05 would be incurred if the stock dropped below the $505.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Nvidia is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Nvidia is bullish.

The RSI indicator is at 53.4 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Nvidia

Nvidia, IBD Stock Of The Day, Seeing Strong Demand For Graphics Processors
Mon, 04 Jan 2021 21:25:40 +0000
Nvidia is the IBD Stock Of The Day as the graphics chipmaker is bucking a down market. Nvidia stock retook a critical support level early in the session Monday before retreating.

AI Stocks To Watch: NVDA Stock Explores New Breakout In The ‘Omniverse'
Mon, 04 Jan 2021 20:40:11 +0000
After rising 340%, NVDA stock targets new breakout, boosted by Nvidia Omniverse and a collaboration with Amazon in the AWS Marketplace.

Monday’s Top 10 Gainers in Focus
Mon, 04 Jan 2021 20:07:48 +0000
U.S. stock futures rose in the pre-market Monday on optimism driven by the continued government stimulus and the availability of the Covid-19 vaccine. However, the three key indexes in the U.S. fell later in the day. At 12:50 p.m. ET, the S&P 500 fell 2.39 percent, the Dow Jones Industrial Average declined 2.23 percent, and […]

PreMarket Prep Stock Of The Day: Nvidia
Mon, 04 Jan 2021 18:05:52 +0000
Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.While the broad market is off to a rocky start in 2021, not all issues are moving in the same direction. One of those issues is Nvidia (NASDAQ: NVDA) and is the PreMarket Prep Stock Of The Day.What A Year In 2020: After ending 2019 at $235.30, the issue followed the S&P 500 index higher and made a new all-time high in mid-February at $316.32. It followed the index lower in late February and into March.It bottomed a few days ahead of the index on March 18 at $180.62 and rallied to end that session at $202.82. That low came in between its October 2019 low ($170.13) and November 2019 low ($198.59).After the down month in March, it embarked on a six-month rally that finally peaked in September at $589.07. It reached that area once again in November, but that rally stalled at $587.66 and it retreated to end the year at $522.20. For the year, it was higher by 122%, far outpacing the index's return of 16%.Catalyst For The Rally: On days similar to today, the media searches for reasons why the market surrendered its premarket gains or why an issue such as Nvidia is firmly in the green. However, there is not always one specific reason.The simple explanation is that money is always moving around when investors are selling out of one sector, they're putting it to work in another. It could be as simple as growth to value and vice versa or there could be specific news driving a sector in the session.For example, two of its closest peers in the chip sector are also bucking the trend as Taiwan Semiconductor (NYSE: TSM) and Intel (NASDAQ: INTC) are higher by 2.5% and 0.5%, respectively.Moving Forward: While the rally in the issue is positive in a weak tape, is today's rally a precursor to the year ahead or simply a rare occurrence where it does not mimic the price action of the S&P 500 index?With its next earnings report not until Feb. 11, it's early for the issue to embark on a pre-earnings rally, which is common in stocks with strong uptrends. Also, with no major rating changes since the day following its last report, it's doubtful there will be a significant upgrade or downgrade in the issue until after its fourth-quarter report.Well Defined Trading Range: While bulls of the issue want to blast through $600 and bears want it to crash below $500, the truth of the matter is that it's in a trading range.Since its two-day tumble from its Nov. 9 high ($587.66) to $505.13 on Nov. 10, it has been in a trading range between from $510 to $550. Over that time period, a majority of the price action has taken place just above and below the $530 level, which is where it's at right now.Perhaps instead of being super bullish or bearish, it may be best to wait until it moves out of this trading range before banking on the direction of its next major move.See more from Benzinga * Click here for options trades from Benzinga * PreMarket Prep Stock Of The Day: JanOne * PreMarket Prep Stock Of The Day: Trade Desk(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Why activist investors are targeting Intel
Mon, 04 Jan 2021 16:03:51 +0000
Daniel Newman, Futurum Research principal analyst, joins Yahoo Finance Live to discuss why activist investors are targeting Intel and what lies ahead for the chipmaker.

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