20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
NVIDIA Corporation’s (NASDAQ:NVDA) stock gapped up Thursday as money began to flow back into the tech sector.
Nvidia has been in a downtrend since reaching a new all-time high of $648.57 on April 15 and has made consistent lower highs and lower lows until it created a double bottom pattern near the $540 area. On Thursday afternoon, Nvidia was trading up over 7% from its opening price on Wednesday.
On Thursday a number of options traders entered Nvidia and bet over $1.45 million its stock is headed higher still.
See Also: How to Buy Nvidia Stock
The NVIDIA Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:
- At 9:31 a.m., Thursday a trader executed a call sweep, above the ask, of 634 NVIDIA options with a strike price of $580 expiring on May 21. The trade represented a $353,138 bullish bet for which the trader paid $5.57 per option contract.
- At 9:31 a.m., a trader executed a call sweep, near the ask, of 249 NVIDIA options with a strike price of $580 expiring on May 21. The trade represented a $144,918 bullish bet for which the trader paid $5.82 per option contract.
- At 9:32 a.m., a trader executed a call sweep, near the ask, of 389 NVIDIA options with a strike price of $580 expiring on May 21. The trade represented a $227,176 bullish bet for which the trader paid $5.84 per option contract.
- At 9:40 a.m., a trader executed a call sweep, near the ask, of 271 NVIDIA options with a strike price of $580 expiring on May 21. The trade represented a $160,161 bullish bet for which the trader paid $5.91 per option contract.
- At 10:11 a.m., a trader executed a call sweep, near the ask, of 524 NVIDIA options with a strike price of $585 expiring on May 21. The trade represented a $230,036 bullish bet for which the trader paid $4.39 per option contract.
- At 10:11 a.m., a trader executed a call sweep, near the ask, of 350 NVIDIA options with a strike price of $630 expiring on June 4. The trade represented a $192,150 bullish bet for which the trader paid $5.49 per option contract.
- At 10:20 a.m., a trader executed a call sweep, near the midpoint, of 219 NVIDIA options with a strike price of $585 expiring on May 21. The trade represented a $94,170 bullish bet for which the trader paid $4.30 per option contract.
- At 1:33 p.m., a trader executed a call sweep, near the ask, of 200 NVIDIA options with a strike price of $590 expiring on May 21. The trade represented a $56,400 bullish bet for which the trader paid $2.82 per option contract.
Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.
These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.
NVDA Price Action: Shares of Nvidia were trading up 4.1% to $585.84 at publication time.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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