With NVDA earnings a day before Friday's expiration, what are some of the strategies you would employ? I am interested in learning what some of you more experienced traders would do in this situation. Thanks!
The daily chart on NVDA looks like its forming a downtrend. If it breaks 42.90 that would be a sure sign. Already looks really weak. So I'd sell a march call spread and buy March puts with the credit. Since I am pretty bearish, i would sell the 45/47.5 call spread (if its available) and buy the 42.5 puts, but to be conservative you could sell the 47.5/50 call spread and buy the 40 puts. If you don't see the downtrend starting, but instead see NVDA at the bottom end of a range(bullish), you could buy FEB 45 calls and March 47.5 Calls and sell March 42.5/40 put spread. Leg into a butterfly if price goes to upper end of range, or short stock agaiinst 47.5 Calls.