NVDA Stock Split: Cheaper Is Better, But Not For The Reason You Think

Jack Carter | May 28, 2024

Hey Traders,

I’m back in Colorado until October or November. Now, let’s get to the market update.

The Dow (DIA) recently hit 40,000, which is bullish, but it’s not as bullish as the Nasdq (QQQ).

Tech is where the real action is right now, and unless you’ve been living under a rock, you probably know NVIDIA is leading the charge. It’s taken off even more than I expected.

I’ve been long on NVIDIA stock for a while, initially buying around 333 and adding more as it goes up.

The stock has had blowout numbers recently and continues to climb, mainly due to the upcoming stock split on June 10th.

After the split, you’ll have 10 shares for every one share you currently own.

The stock is over 1000 now, and while it cooled off a bit, it’s still high.

Now here’s the thing about stock splits: The myth is that when a stock splits, it becomes more affordable and attracts more retail investors.

While that’s somewhat true, the real action is going to be in the options market.

Post-split, NVIDIA’s options will be some of the most lucrative trades for the rest of this year and into the next. With a strong trend and good volatility, it’s a dream scenario for options traders.

Think about it: Tons of investors want to trade NVDA, but they can’t afford $3600 for an option. But they can definitely afford $36.

Plus, if you end up with at least 100 shares post-split, you can set yourself up to sell covered calls.

So, stick around because I’ve got something amazing coming your way on the tail end of this.

In the meantime, check this out:

I’m going live today to share everything about how to tap into the government’s wasteful spending with my Profit Sharing Payments strategy. Click here to check it out!

Trade well,

Jack Carter

Trending Stocks of the Week — May 28, 2024

Jack Carter | May 28, 2024

The politicians in Washington can spend taxpayer dollars like water… but I’ve figured out a way to fight back and get in on this wasteful spending. Click here to discover my Profit Sharing Payments strategy.

Now for our top trending stocks of the week:

To help you discover the power of trends, every week, every week, I share with you a handful of the top trending stocks.

These stocks are picked by the custom-built TrendPoint software I designed to pick the strongest trending stocks in the market right now.

If you know anything about me, you know that every trade I get into starts with a trending stock.

Unless a stock is in a strong trend, I don’t want to hear about it. In my book, wishy washy stocks are the quickest way to losing money.

This Week’s Stocks

Remember, our first preference in trading is to always trade in the same direction as the broad market.

With markets in a bullish trend, I’ve got 3 upward-trending stocks for you:

  • CAVA
  • ETN
  • GDDY

And don’t forget about last week’s picks, which you can find here.

This week’s stocks show a strong trend and could still be in play for the next few weeks.

What can you do with these stocks?

Well, there are a couple of things you could consider — after doing your own research, of course:

  1. You could just buy the stock. This is probably the simplest thing you could do. Then just wait for it to go up and sell when you hit a profit target you’re comfortable with. This is only for stocks we’re long on. For stocks we’re short on, you can short them.
  2. You could buy an option. You know I’m not a fan of speculative plays, but every once in a while it doesn’t hurt to throw a little cash at a speculative option. Of course, while options can move bigtime if the stock goes up… the downside of options is that you have a time limit on how quickly you need the stock to make that move. So think about your risk tolerance and consider buying calls or puts depending on the stock recommendations above.
  3. You could do an income play. If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they increase your odds of winning. We do this by SELLING options instead of buying them. If you haven’t tried your hand at income trading yet, I urge you to try this exercise for yourself.

    Without risking any money, it will really let you see the power of income trading and why it’s my favorite method.

    Whether you end up doing naked puts, covered calls or some kind of spread, this is really my preferred method to use when I’ve found a great trending stock like the ones on this week’s list.

That’s it for now.

Stay tuned, because I’ll be sending you a new list of TrendPoint Best Trending Stocks every week! (usually Mondays)

Trade well,

Jack Carter