NVDA drop it like it's hot

NVDA drops

Author

Brother Bill
August 28, 2024

NVDA gave good numbers today but obviously not good enough. Price plunged after hours down to $115.00 for the low and currently sits at the $116.50 area. Over 300 Billion in market cap will be wiped out if it doesn’t make a drastic recovery in the morning.

Options buyers will need to close their positions to limit losses or ride it out enduring the risk of Theta Decay. Should the price level back out then the sellers will benefit from that erosion.

Scenarios like this today are exactly why we don’t enter without downside protection directly prior to earnings events. For those that were able to join yesterdays free webinar we covered 3 strategies to offset losses in case of an event such as this with Options. We will be having more of those in the future.

The green NVDA report card is courtesy of Yahoo Finance. The S+P 500 Futures are down immensely at the moment as well as a direct hit from this setback. I’ll deliver the new S+P support level in the morning.

Invest wisely, live charitably and be well

Brother Bill

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