NVIDIALong
NVDA: The 10-1 Split Chart I'm Watching Now
Updated
I was hoping for the stock split and it is finally here .. so here's the chart i will be watching (and trading) for the next 2 weeks - thought to share with other traders who like splits (like me ;) ) ..
I love stock splits because _ with big names like AAPL, TSLA, NVDA..etc, they generate so much hype and excitement that a split announcement presents a wonderful trading event ..
i see so many "gurus" say that a split changes nothing for the stock, and that's true from a valuation standpoint, but the mechanics (option pricing / broker hedging) and trader psychology around a split introduces major catalysts that are known only to few traders.. anyways, that's a whole different topic.
there's 2 trading plays here.. one stage is short-term (a 2-week swing), we trade the split between the announcement to the actual record date for a big move up - then there's the longer term Buy/hold of the stocks for few months after the split - for a possible run generated by the demand of new investors coming in to the (now cheaper) stock.
Big caveat here, the scenario i have on the chart is only a "possible" scenario - and it may not materialize - no one can predict the market - there are major economic news coming next week - so closely managing this trade is super critical. This is a high-risk/high-reward but i like the probabilities .. the wind is (mostly) favorable now but can turn at any moment.. risk management is the key.
i will trade this split with both stocks and long call options (June month expiry) .. i won't keep the options for long, and for the stocks, may unload a part right after the split. i Have my price targets (including the expected call option prices already calculated
If you'd like to read more about why I love splits and how i trade them, pls find my old published idea on the AAPL split back in 2020
Note the record date of this split is Thursday June 6th
This is not a trade recommendation - just sharing what I'm doing.. Good luck.
I love stock splits because _ with big names like AAPL, TSLA, NVDA..etc, they generate so much hype and excitement that a split announcement presents a wonderful trading event ..
i see so many "gurus" say that a split changes nothing for the stock, and that's true from a valuation standpoint, but the mechanics (option pricing / broker hedging) and trader psychology around a split introduces major catalysts that are known only to few traders.. anyways, that's a whole different topic.
there's 2 trading plays here.. one stage is short-term (a 2-week swing), we trade the split between the announcement to the actual record date for a big move up - then there's the longer term Buy/hold of the stocks for few months after the split - for a possible run generated by the demand of new investors coming in to the (now cheaper) stock.
Big caveat here, the scenario i have on the chart is only a "possible" scenario - and it may not materialize - no one can predict the market - there are major economic news coming next week - so closely managing this trade is super critical. This is a high-risk/high-reward but i like the probabilities .. the wind is (mostly) favorable now but can turn at any moment.. risk management is the key.
i will trade this split with both stocks and long call options (June month expiry) .. i won't keep the options for long, and for the stocks, may unload a part right after the split. i Have my price targets (including the expected call option prices already calculated
If you'd like to read more about why I love splits and how i trade them, pls find my old published idea on the AAPL split back in 2020
Note the record date of this split is Thursday June 6th
This is not a trade recommendation - just sharing what I'm doing.. Good luck.
Trade active
First Target already hit on first day trading on gap up. There will be some profit taking before the split date.. so maybe a good chance to add then. We'll watch closely!Trade closed manually
2nd target achieved .. closing half position and most of the long calls .. leaving some in case there's still some upside after the split.Trade closed: target reached
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