{"id":77280,"date":"2025-02-28T10:47:05","date_gmt":"2025-02-28T15:47:05","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=77280"},"modified":"2025-02-28T11:24:50","modified_gmt":"2025-02-28T16:24:50","slug":"scott-redler-nvidia-sell-rules","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2025\/02\/28\/scott-redler-nvidia-sell-rules\/","title":{"rendered":"NVIDIA: 4 Sell Signals in One Day"},"content":{"rendered":"

I came into NVIDIA's<\/strong> (NVDA) fourth-quarter earnings report expecting some level of disappointment.<\/p>\n

I told Power Plays Options<\/a><\/strong> Subscribers the following on Wednesday:<\/p>\n

I believe NVIDIA<\/strong> (NVDA) is at risk of a post-earnings decline so I am adding this position:<\/p>\n

Long NVDA February 28 $120 Puts<\/strong><\/p>\n

These puts look good in the $2.75 to $3.50 area (or lower).<\/p>\n

With Nvidia's decline off its highs and lower valuation, some believe a lot of bad news priced in.<\/p>\n

I disagree.<\/p>\n

We're still looking at a stock with a $3 trillion market cap and rosy expectations for endless long-term growth.<\/p>\n

So to me, the odds favor a post earnings decline.<\/p>\n

If this report isn't anything less than 100% shoot-out-the-lights perfect, we could see a hard drop below the $120 area.<\/p><\/blockquote>\n

Incidentally, this was the first put options idea in Power Plays Options history.<\/p>\n

We did get the hard drop in NVDA stock below $120 — but it unfolded over the course of 2 days.<\/p>\n

In fact, NVDA put in 4 sell signals the day after earnings (yes, 4 sell signals in one day) as you can see in this chart:<\/p>\n

\"\"<\/p>\n

I love teaching my Sell Rules — and this is an interesting case study because you so rarely see so many hit in one day.<\/p>\n

Here's how NVDA's decline happened so fast:<\/p>\n