Trade Alert: Earnings
Betting against Nvidia ahead of its earnings today.
A Coin Flip Bet
Ultimately earnings trades are a coin flip, but I feel like betting against Nvidia (NVDA 0.00%↑) ahead of its earnings today. I wrote about my bearish thesis on the company here before its last earnings,
And I think that thesis is still intact. I’m a little less confident in it than I was in January, with the Nvidia deals announced recently, but the stock is trading above where it was when it last reported, and I think those deals are priced in now.
Today’s trade will give us a maximum gain of about 138% if Nvidia ends the week modestly lower from here, against a maximum loss of 100% if we’re wrong.
Details below.
