NVDA Trade on Feb 8, 2021 15:46 from Marius: Tradervue User Stock Trades.

Markets opening the week strong and in continued breakout.

Fundamental Analysis

NVDA is a semiconductor leader in its space. It has been in a range since last September's highs at almost 6 months of consolidation. There were company buyout news within the sector and SMH was showing strength all together. Chip shortages have been reported recently as demand is higher. Bitcoin is also approaching 50K and semiconductor's are a fundamental role in processing the blockchain technology. It is also a notable resource for the economic expansion in play along with the rapid growth of technology in different areas.

Quantitative Analysis

Intraday Fundamentals

RVOL 1.44
AVOL 7.51M
ATR 17.92
Short Float 1.26%
Shs Float 593.11M
Inst Own 68.70%
Market Cap 359.43B

Options Statistics + Tape Reading

SI 3.044
IV 47.37%
IVP 18%
P/C .0358
VWAP 568.184

Notable directional call volume and on the ASK.

Options Positioning

OI S 1768 L 1645
VOL S 6202 L 2812
Delta S -.12 L -.02
Theta S -.50 L -.13
Vega S .14 L L .04
Gamma S .01 L .00
Prob T S 26.12% L 5.10%
Prob ITM S 13.20% L 2.58%
MMM +/- 22.511
IV Series 42.83%

Technical Analysis

Trade/Risk Management & Review

I'm going back to my technical + price action roots. This is an A+ setup in my playbook. A HTF breakout trade on the daily, weekly, and monthly with elevated volume. Strong name in a strong sector and strong market regime. I have a decent size in my trade and acceptable risk. I scaled back the original position in half due to recent performance but potential reward here is still great. It has more to do with my newer style of building vertical spreads vs. straight selling options. My risk is better managed but probability is less. I feel like I should be continuing to work this way as this is what is going to be more sustainable and scaleable in the longer-term.

Closed and scalped the trade with about 20% profitability overnight. It looked as if there was more risk to the downside seeing the opening stuff and consolidation trading under vwap.

Grading this trade as a B managing risks and with the goal in mind for income and not necessarily nailing the whole move. Re-allocated the capital to a better trade following this. The other option was to reposition the trade but will see how this develops along with the markets.