Option Play for Nvidia (NVDA)

Today's play is debit call spread on NVDA. The stock is set for new upward move along with other Nasdaq stocks such as APPL, ARMH, QCOM and AMD.

Price and moving averages all in line and set to provide good base and support around $15.20 level.

Target:	Six months: 18.96     One year: 22.14
Support:	Support1: 15.12    Support2: 14.44
Resistance:	Resistance1: 16.23    Resistance2: 18.96
Pivot:	15.64
Moving Averages:	MA(5): 15.64     MA(20): 15.44 MA(100): 15.09     MA(250): 13.78
MACD:	MACD(12,26): 0.08     Signal(12,26,9): 0.06
%K %D:	%K(14,3): 59.97     %D(3): 63.18
RSI:	RSI(14): 56.06
52-Week:	High: 16.23  Low: 11.53  Change(%): 33.0
Average Vol(K):	3-Month: 6953  10-Days 6933

 



 

 

If in coming days stock price manages to take out Parabolic SAR we will be looking to BUY:

 

                                         10 contracts of   NVDA FEB14  17/18 Call Spread @ $0.18

 

 

So the cost for the spread is $180 + $30 commission, which amount to $210. The break even at expiration is at $17.18,  and if the price sets above $18 we will get the maximum profit of $820.