Navigating Nvidia: What Worked, What Didn’t

Hey traders,

It feels like the whole market was holding its breath for Nvidia’s (NVDA) earnings yesterday.

There was even a watch party — can you believe it? But for all the hype, the stock didn’t move as much as I expected.

Nvidia’s earnings were great — exactly what I wanted to see.

They’re growing at double digits per quarter, which is something most companies can only dream of.

But despite the solid numbers, the market didn’t respond with the bullishness I expected.

As I told you in Tuesday’s update, I went into this with a few trades. Some worked, some didn’t. Let’s talk about both.

First, the ones that didn’t work:

As you remember from Tuesday, I bought some shares of NVDA right before the earnings announcement, hoping to sell it quickly in the after-hours session.

The idea was to capitalize on a big upward spike I was expecting right after the earnings news broke.

That didn’t work out this time. But no worries — I held onto the stock, sold covered calls against it, and that’s been working just fine.

The other trade I made was buying some at-the-money calls.

That one didn’t pan out either, and I took a loss.

But here’s an important lesson: Anytime I buy a call or a put, I’m prepared to lose 100% of that money.

It’s a risk I’m willing to take because options move fast. You’ve got to be ready for that, and sometimes it just doesn’t work out.

Now, let’s talk about what did work.

I sold calls against the stock I held onto, and the premium was incredible.

Even better, in my Nvidia Cash Generation program, my followers and I got called out of Nvidia at $121 last Friday.

Usually, we’d buy back in on Monday, but with earnings coming up, we waited. That patience paid off. We were able to get back in at around $120 and sell more calls, which lowers our cost further.

The key takeaway? Not every trade is going to be a winner, but with the right strategy, you can still come out ahead.

Nvidia didn’t make the big move I expected, but by being flexible and selling those calls, I was able to turn a potential loss into a win.

That’s why I always say that when you trade, you have to roll with the punches.

Trade well,

Jack Carter
P.S. If you’re curious how the strategy works in my Nvidia Cash Generation program, check out this video where I explain it all!

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