Tuesday, May 21, 2024

How to Trade Nvidia's Earnings Report

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EDITOR'S NOTE

Tomorrow is like the Super Bowl of the stock market!

Nvidia (Nasdaq: NVDA) - the artificial intelligence (AI) company that's seeing incredible demand for its AI chips from big tech groups like Meta Platforms and Tesla - is reporting earnings.

And our friends at Monument Traders Alliance have a special way to play it for a big potential move - up or down.

Head Trading Tactician Bryan Bottarelli is going LIVE to reveal this Nvidia trading strategy during his "Nvidia Super Trade Event." It's completely free, but you'll have to sign up now.

Click here to sign up for Bryan's Super Trade event.

- Nicole Labra, Senior Managing Editor

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How to Trade Nvidia's Upcoming Earnings Report

Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance

Bryan Bottarelli

The big day is almost here...

After the close of trading tomorrow, Nvidia (Nasdaq: NVDA) will report earnings.

Goldman Sachs - who many of you know are the smartest Wall Street guys in the room - have already dubbed the company, "The most important stock on the planet."

That's quite a powerful statement - which is why the earnings report could be so impactful.

How Nvidia reacts later today will send shockwaves throughout the global marketplace - which is why I'm gearing up to issue a Nvidia One-Day Super Trade today.

If you want the details on how we plan to execute this trade - along with two FREE trade ideas that could profit off up or down moves - you must act now.

I am going live TODAY at 2 p.m. ET... and I invite you to join me for FREE here.

I plan to issue this trade tomorrow afternoon, around 3 p.m. ET (one hour before the market closes) for those who join me in The War Room. We want to get positioned in a unique way that should profit no matter if the stock moves up or down.

To set the table for this release...

Insatiable demand for Nvidia's graphic chips has analysts projecting $21.3 billion in revenue for its data storage segment - and $24.6 billion in total sales.

If those numbers are reached, it would represent growth rates of 398% and 241% respectively - both of which are eye-popping.

The consensus estimate is earnings per share of $5.59, which is an equally mind blowing 413% more than the same quarter one year ago.

After gaining 239% in 2023, Nvidia is currently up 87% in 2024.

Will these astronomical gains continue?

Or will an earnings disappointment send shares moving lower?

Let's look at the numbers...

Will Nvidia Explode Higher?
 

This upcoming Nvidia earnings release will be the most-watched earnings reaction of the entire year.

But here's the thing...

Most investors are about to get taken to the cleaners.

You see, with so such excitement and anticipation for this event, everyday investors will pay huge price premiums - all in hopes that the stock continues to soar.

But today... I'm here to tell you...

There's a better way to play Nvidia's earnings.

The trade I'm about to reveal is 90% cheaper paying nearly $1,000 for one share of NVDA stock.

And it has nothing to do with guessing on call or put options on NVDA.

Best of all, when you use my unique strategy...

It doesn't matter if NVDA moves UP or moves DOWN.

*With my Super Trade, you can profit so long as there is movement!

It all has to do with a unique strategy I deploy in The War Room frequently, called "the overnight earnings strangle."

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The Power of Overnight Trades

A lot of new Members to The War Room all tend to ask the same question: What is an overnight earnings strangle?

To me, it's one of the most powerful strategies we use at Monument Trader's Alliance.

I'll give you a clear and concise breakdown of how this trading tactic works - so you can get a good base knowledge before our event later today.

To start, the primary element of the strategy involves an options trading position called a "strangle."

A strangle is a trading strategy that's used if you think the underlying security will experience a large price movement in the near future... but you're unsure of the direction.

In other words, say a stock that you happen to like (in this case, let's use Home Depot) is about to report earnings.

You think a strong earnings report could shoot its stock price up $10.

But on the flipside, a weak earnings report could push the stock price down $10.

You're unclear as to the direction of Home Depot...

But either way, you have a feeling that it could make a big move.

In cases like this, a strangle trade would be the perfect way to trade - because this options strategy would be profitable no matter if Home Depot makes a big move up or makes a big move down.

As long as the stock makes a sharp move in price, a strangle trade will win.

To enter a strangle trade on Home Depot, you'd enter two options: You'd buy a HD call option - and you'd also buy a HD put option, each with different strike prices - but both with the same expiration date.

Here's how to look at this graphically...

Long Strangle
 

What I like most about this trade is that the total risk is limited - while the total upside is unlimited.

For example, the call option has theoretically unlimited upside, while the put option can profit if the underlying asset falls.

Your total risk on this trade is the only premium that you paid for the two options. Nothing more.

To calculate your break-even price, simply take the entire cost of the strangle (the call price plus the put price) and add it to your call strike. That's your break-even on the upside.

Then, take the entire cost of the strangle and subtract that from your put strike. That's your break even on the downside.

As long as your stock moves ABOVE or BELOW either of these values, your strangle trade will be profitable.

How can a strangle trade lose money? That's simple. If the stock that you think is going to make a big move remains flat or does not move high or low enough, then your strangle trade will lose money.

But that's the key takeaway of my Overnight Earnings Strategy...

To avoid the risk of a stock NOT making a big move, I enter into these strangle positions a day BEFORE a stock is set to make an earnings announcement (just like I will do with the Nvidia One-Day Super Trade today).

After all...

Earnings announcements tend to ignite the biggest one-day moves on stocks - up or down. So, adding a strangle position just before a big earnings announcement ignites a big stock move represents one of the smartest, and highest-performing strategies.

Join Us Later Today!

The strategy that I just used to make 36%, 84%, and 207% overnight will soon be used to trade Nvidia earnings and you're invited to sign up for the event - TOTALLY FREE!

YES! Sign Me Up for the One Day Nvidia Super Trade.

However, I have to tell you...

This new trade will come with a slight variation - which is why it's critical that you join us when we go live on TODAY, May 21st at 2 p.m. ET...

Details of this one-day trade will be revealed during this special LIVE broadcast - so be sure that you secure your spot TODAY.

Just know that my overnight trade strategy has never been set up so perfectly for an earnings release, so you don't want to miss it.

Earnings only come a few times per year... so timing here is critical. You only have one shot to make this play! So be sure to sign up for FREE right now!

YES! Sign Me Up

Yours in smart speculation,

Bryan

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