Just that strong

Did you read last nights blog about the Heat Map showing how NVDA was up over 34% in the last 3 months? Well wham, bamm Shazamm it’s still on a roll

One thing that is undeniable about the markets and anything in life really is that strength typically creates more strength where as weakness typically creates more weakness. Today NVDA closed up 3.56%

NVDA not only broke up over $900.00 today, it stayed there too….. For a $900.00 stock to move almost 4% in one day it takes some strength. And with it everything else rose as well. As stock investors we don’t want to “chase” but we do want to buy into strength when it’s there.

Are you familiar with Stock Options? This is what we Options traders refer to as an “Options Chain” One of the things that we look for is areas of high OI ( Open Interest ) OI is different than Volume, they are not the same. NVDA has buyers piling it at the $950.00 Strike ( Strike means price ) So what they are doing is buying the 950’s at a significantly cheaper cost than the stock. To buy 100 shares of NVDA it would cost you $92,000.00 To control 1 Options Contract at the 950 which covers 100 Shares, it will only cost $6,300.00 The Open Interest on the JUN 21, 2024 950 Strike now sits at 6,706. That my trader friends is true strength.

What ever it is you buy when you invest, it’s wise to consider it’s future strength

Invest wisely, live charitably and be well

Brother Bill