Trade Alert: Lock in a 125% Gain in Nvidia

Today, we’re going to increase our stop-loss orders to preserve a 125% gain in Nvidia (Nasdaq: NVDA), and I have an update on our Mattel (Nasdaq: MAT) stop-loss orders.

Let’s start with protecting our profits…

On Thursday, I sent you an alert to place a stop to protect a 50% gain on the second half of our Nvidia position. Remember, we already locked in about a 50% gain on the first half in just one day.

Great job on sticking to our strategy.

Now, less than a week later, our call options are up 150%, so it’s time to increase our stops to protect a 125% gain. As the position continues to climb, I’ll look to increase this order once again.

For now, let’s place this trade to protect our gains.

Based on the official entry price of $7.85, I’ll set the 125% stop order at $17.66. But be sure to set yours at whatever nets you a 125% gain based on your entry price.

Here’s your action to take:

Action to Take
Sell Action to Take
Stock: Nvidia Corporation (NVDA)
Option Type: Call Option
Expiration: Jul-21-2017
Strike Price: $115
Option Symbol: NVDA170721C00115000
Action: Sell to Close
Order Type: Stop-Loss Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $17.66
Trade Deadline: Keep this order open until it is filled or canceled.

Last week, I also sent you an alert to place a stop-loss on Mattel since the position had failed to gain any momentum in our direction.

Later that day, the stop was filled, handing us a 50% loss. That’s why we placed the stop-loss order to begin with, though — to preserve capital. And it did just that. Today, the option is down a little more, so if you haven’t exited this trade yet, go ahead and do so now.

That’s all for today.

There are still a handful of possible trades left in this earnings season, so I’ll update you when one is triggered. And, as always, I’ll keep you updated on our portfolio.


Chad Shoop, CMT
Editor, Earnings Drift Alert