Nvidia (NVDA) Offering Possible 42.86% Return Over the Next 27 Calendar Days

Nvidia's most recent trend suggests a bullish bias. One trading opportunity on Nvidia is a Bull Put Spread using a strike $360.00 short put and a strike $350.00 long put offers a potential 42.86% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $360.00 by expiration. The full premium credit of $3.00 would be kept by the premium seller. The risk of $7.00 would be incurred if the stock dropped below the $350.00 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 57.73 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

AMD and Intel Are Among Nomura’s Top Semiconductor Picks for the Second Half of 2020
Thu, 18 Jun 2020 21:32:19 +0000

Nvidia Option Trader Bets $1.3M On Near-Term Upside
Thu, 18 Jun 2020 19:10:07 +0000
Shares of NVIDIA Corporation (NASDAQ: NVDA) traded slightly lower on Thursday, but the stock has been among the top performers in the market so far in 2020.Despite concerns over the economic impact of a potential second wave of coronavirus infections, investors have been piling into Nvidia stock this year. Even with the stock up 55.7% year-to-date, one option trader made a big bet that there's more upside ahead in the next week.The Nvidia TradesOn Thursday morning, Benzinga Pro subscribers received four option alerts related to unusually large Nvidia option trades: * At 9:30 a.m. ET, a trader bought 1,020 Nvidia call options with a $365 strike price expiring on Jun. 26. The contracts were purchased near the ask price at $13 and represented a $1.32 million bullish bet. * At 9:35 a.m. ET, a trade was executed for 300 Nvidia call options with a $370 strike price expiring on Friday. The trade was executed near the midpoint of the bid-ask spread at $4.55. * At 10:21 a.m. ET, a trader sold 346 Nvidia call options with a $380 strike price expiring on Friday. The contracts were sold at the bid price of 60 cents and represented a $20,760 bearish bet. * Less than a minute later, a trade was executed for 306 Nvidia call options with a $370 strike price expiring on Friday. The trade was executed near the midpoint of the bid-ask spread at $2.371. * Why It's ImportantEven traders who stick exclusively to stocks often monitor option market activity closely for unusually large trades. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader. Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock.Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there's no surefire way to determine if an options trade is a standalone position or a hedge. In this case, given the relatively large size of the largest Nvidia option trade, there's certainly a possibility it could be a hedge on a large position in Nvidia stock.Nvidia A Top Semiconductor Pick The large call purchase comes the same day Bank of America analyst Vivek Arya reiterated Nvidia as one of his top semiconductor stock picks with secular growth potential due in part to its exposure to cloud computing. Arya said long-term investors shouldn't get too wrapped up in near-term cyclical semiconductor cycles. "COVID-19 is an accelerant, and not a change-agent, for structural changes (movement to cloud, 5G adoption, telework, gaming, healthcare AI etc.) generally favoring growth semis," he wrote. Nvidia remains Bank of America's top large-cap semiconductor stock pick.Earlier this week, a Bank of America gaming survey revealed that only 8% of PC gamers currently have GPUs capable of delivering performance on-par with the upcoming PlayStation and XBox console refreshes expected out in the second half of 2020. Analysts speculate the launch of the new consoles could trigger a major GPU upgrade cycle among PC gamers, creating a near-term boom in Nvidia demand.At the same time, TechRadar reported Nvidia may also be working on an update for its lower-end GTX 1650 GPUs, which could pose an unexpected challenge to rival Advanced Micro Devices, Inc. (NASDAQ: AMD).However, on Tuesday, Morgan Stanley downgraded Nvidia from Overweight to Equal-Weight and said there are better near-term opportunities for investors in semiconductor stocks more levered to a rebound in consumer spending. NVDA Chart by TradingView new TradingView.widget( { "width": 680, "height": 423, "symbol": "NASDAQ:NVDA", "interval": "D", "timezone": "Etc/UTC", "theme": "light", "style": "1", "locale": "en", "toolbar_bg": "f1f3f6", "enable_publishing": false, "allow_symbol_change": true, "container_id": "tradingview_239e7" } ); Benzinga's TakeThe nearly $1-million call purchase has a break-even price of $78, suggesting at least 3.2% upside over the next six trading sessions.Given the extremely short-term nature of the trade, it's unlikely the trader is making a bet based on Nvidia's long-term fundamentals. Either the trader is anticipating a bullish catalyst to come sometime in the next week, or the trader is betting that the tech sector will gain some steam next week and Nvidia will lead the market higher.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Related Links:AIG Option Trader Bets 0K On More Downside Ahead How To Read And Trade An Option AlertSee more from Benzinga * Bolton Says Trump Wanted Mnuchin To 'Go After Bitcoin' For Fraud: Report * Analyst: 'Trends Are Encouraging' For US Regional Casinos * This Day In Market History: The Fitbit IPO(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Intel stock slips as new lines of AI chips released
Thu, 18 Jun 2020 19:01:00 +0000
Intel Corp. shares slid with the broader market Thursday as the chip giant introduced several new products to support artificial intelligence and data analytics.

US Indexes Close Mostly Lower Wednesday
Wed, 17 Jun 2020 22:18:27 +0000
S&P; 500 down 0.36% Continue reading…

Gaming Survey Shows 'Solid Trends' As PlayStation 5, Xbox Series X Prepare For Launch
Wed, 17 Jun 2020 21:25:10 +0000
Video games are on the rise thanks in part to stay-at-home procedures during the coronavirus (COVID-19) outbreak. PC gaming is up, with Etailers reporting "frequent recent stocks outs of NVDA's most popular Turing cards."According to analysts at BofA Securities, only "8% of PC gamers own a GPU on par with performance of upcoming Sony/Microsoft game consoles, which will become the new bar for mainstream performance."The approaching releases of Sony Interactive Entertainment's (NYSE: SNE) PlayStation 5 and Microsoft Corporation's (NASDAQ: MSFT) Xbox Series X could ignite a "major upgrade cycle" for PC gaming-based companies like Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD).See Also: What Sony Analysts Like About The PlayStation 5 PresentationDemand > Supply: Demand will inevitably grow as mainstream consoles begin releasing hardware updates. BofA analysts believe "Turing adoption could be increasing as a result of the rising popularity of gaming as many are confined to their homes."Many places like Amazon (NASDAQ: AMZN) are seeing Nvidia products such as the GTX 1650 Turing card sell out."In our estimate, just 8.4% of NVDA steam users are using graphics cards with specs on par with the forthcoming Xbox Series X and PS5 game consoles which should become the baseline for AAA PC game performance/development upon their launch in the 2H of this year," analyst Vivek Arya wrote in a note."We define this threshold as equal to or above NVDA's RTX 2060 Super Turing card. This implies 90%+ of the installed base could become strongly motivated to upgrade to higher ASP current-gen Turing products, and potentially next-gen 7nm Ampere products, once new game consoles launch later this year."Latest Ratings for AMD DateFirmActionFromTo Jun 2020Morgan StanleyMaintainsEqual-Weight Apr 2020Argus ResearchMaintainsBuy Apr 2020CFRAMaintainsBuy View More Analyst Ratings for AMD View the Latest Analyst RatingsSee more from Benzinga * Sony Analyst Expects 'Strong Software' Announcements At PlayStation 5 Event * 'Modern Warfare' And 'Warzone' Loading Screens Replaced With Black Lives Matter Message * Video Game Companies Announce Delays, Pledge Support Of Protests(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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