Todd Gordon of TradingAnalysis.com recommended on CNBC's "Trading Nation" a bullish options strategy in NVIDIA Corporation NVDA.
He identified the support price level in the name between $135 and $140 and he also noticed that implied volatility is currently elevated. To make a bullish bet, Gordon wants to sell the July 140/135 put spread for a credit of $2.04.
He is going to collect the premium, if the stock stays above $140 at the July expiration. Below $137.96, the trade is going to lose money and it can maximally lose $2.96. If the stock drops below $135, Gordon is going to close the trade.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.