Nvidia Crashes After Stellar Earnings—Here’s the Trade They MissedWall Street panicked, but a rare trade just triggered. Don’t miss it.
It’s Friday, and a rare options trade just triggered today in Nvidia. I’ll tell you more about that in a minute, but like many, you’re probably wondering why the stock is down after posting earnings that looked like a grand slam, right? Here’s what’s going on. Nvidia just reported record revenue and raised guidance—everything Wall Street typically loves. But instead of the stock shooting up, it dropped. Why? Because after a 150% run this year, the stock is priced for perfection. When expectations are that high, even the smallest flaw can send investors running. During the earnings call, Nvidia’s CFO mentioned a slip in gross margins—from just over 78% to 75.1%. At first glance, that might seem like a minor issue. But in the high-stakes world of Wall Street, it’s enough to make traders nervous. Think of it like walking a tightrope: even the slightest wobble can have big consequences when you’re up this high. Then came the real kicker. Investors were spooked by potential delays in Nvidia’s next-gen Blackwell chips and some inventory issues. In a stock priced for perfection, even a hint of trouble can lead to a sharp pullback. But here’s the twist. Buried under all that noise was Nvidia’s announcement of a $50 billion stock buyback. Now, that doesn’t mean they think their stock is cheap right now. It means they’re sitting on so much cash, they need to do something with it. With limited options, they chose to buy back shares over the coming months, creating a natural floor under the stock—likely preventing a dramatic fall. And now, back to that trade trigger. While the market is busy overreacting to Nvidia’s minor margin slip and chip delays, a rare trade setup quietly appeared. This setup has only happened four times in the last two years, delivering a total return of 71% in just 27 days, all with defined risk. I’ll be sharing the full details with my paid subscribers this weekend. If you want to catch this trade—and others like it—now’s the time to join. Trade smart, Josh Belanger You’re currently a free subscriber. Upgrade for the full experience and receive exclusive special reports like "How to Get Rich in The Stock Market" and "Congress' Secret Stock Playbook: The Top 5 Power Picks Revealed”.
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Jumat, 30 Agustus 2024
Nvidia Crashes After Stellar Earnings—Here’s the Trade They Missed
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