Options ruled the day

First and foremost if you are long this market then congrats to you, if you are currently short, sorry about your luck. Today was one of those days that all you had to do was throw a dart at a board and you would hit a winner. This morning I mentioned a new stock that popped up on our scan, we’ll get to that on a later date, today lets focus on all of this green. The “Big Board” produced 158 brand new 52 Wk Hi’s today and the Nasdaq had 74.

One has to wonder how many of those are AI driven and or related or supported by NVDA. NVDA had a phenomenal day today.. The Options on it for SEP 20, 2024 went OFF THE CHARTS TODAY…… History is looking to not only repeat itself here but set a new all time Options record as well….If one looks at any Options chain on NVDA it looks like SPY or SPX these days.. Who would of ever even dreamed that was possible just 5 or even 4 years ago? Tight bid / ask spreads, VERYYYYYYYYYYYYYYY HIGH liquidity, and Contracts being traded every where you look. For their efforts the Options traders were rewarded extra handsomely today. If you don’t trade Options please allow me to explain it like this: “The stock market is like a car race, we have lots of different kinds of cars, everything from Chevy Chevette's to Corvettes, NVDA is a Corvette with a rocket ship engine strapped on top of it” Right now it overshadows everything else so big with Options it’s not even fair to allow it to be in the same race…….. A 4% move on NVDA can overshadow other stocks Options that made a 10, 12 or even a 15% move without blinking. Pricing, Options are about pricing.

The whole market watches NVDA, it’s driving markets. Earnings come out on AUG 28, 2024 and could be a game changer for it. One should never bank on “Maybe’s” but should protect their positions by setting price targets, STOPS, and for Options traders there are a multitude of ways to offset potential losses.

NVDA wasn’t the only green today. WMT gapped up over night opening up over 8% this morning. AMZN closed the day up 4.4% and TSLA busted a move higher by over 6.3%

The rules don’t change, the gig remains the same. What is here today has no guarantee of being here tomorrow, and speaking of tomorrow it’s OPEX. Some profit taking wouldn’t be unheard of. If your a short term trader protect those gains, if your a longer term investor never allow those gains to turn into losses. Seeing a theme? What did “Uncle Warren” teach us? RULE #1, Never lose money…… RULE #2, Go see RULE #1……………

Adding the Options Chain for SEP 20, 2024…… Tomorrow is another day.

Invest wisely, live charitably and be well

Brother Bill