The U.S. stocks index is about to make a small pullback from 6000 points, the market is waiting for the big exam of Nvidia. There is no need to doubt, if big brother misses out, a 5%-10% pullback in the index is a high probability event. As of November 18, market traders are betting on the situation.
Nvidia NVDA (released earnings report after market close on October 20): There is a 68% probability centered around $140, with a fluctuation range of 7% at $127-$155. Recommended operation: sell put options for November 22 at the lower price limit, and sell call options for November 22 at the upper price limit. Friends who want to gamble on the earnings report today should not unilaterally buy options to bet on price movements. A double-sided option strategy is a high probability, because implied volatility (IV > HV). Selling options has a 70% probability of making money. Everyone can adjust the number of option contracts based on their own capital strength. If exercised, decisively close at $155, wait for IV to drop after the earnings report and then buy the 155 synthetic call option for the end of the year. If exercised at $127, hold the stocks until the median value of $130 by January 2026, not trapping yourself. Personally, I am bullish and added an at-the-money call option, refer to the profit curve shown in the graph.
Sell Nvidia 241122 155C
Sell Nvidia NVDA 241122 127 put.
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