Hi, I'm The Cafe Trader.
We’re taking a deeper dive into NVIDIA (NVDA) — one of the leaders in the MAG 7 — with a short-term trade setup you can apply to both shares and options.
Setup Context:
NVDA is pushing into all-time highs, and we’re now approaching the average analyst price target (around $180). While we don’t know how price will react at this level, traders should be watching for pullbacks and trend continuations — prime zones for entry.
If we get a strong move down, I see $153 as a high-probability bounce area — where buyers are likely to step in aggressively.
Price Target Outlook:
The final price target will depend on how price moves into this zone:
- If NVDA runs to $200 before pulling back, targets shift higher.
- If it tops out around $180, we adjust accordingly.
That said, an initial bounce toward $169–$170 looks reasonable.
Options Note:
If NVDA sells off hard and fast, implied volatility (IV) will spike, making options expensive and reducing your edge. This is a setup that could play out over 2–3 weeks, but the first bounce could be quick — so timing matters.
Strategy: Staggered Entry Using Two Contracts
Use two contracts — one short-term, one mid-term — to maximize reward while managing time decay.
Contract 1: Short-Term (3–5 Days to Expiry)
Trigger Entry: As soon as price taps the demand zone (~$153)
Strike Entry Price ^^Target Price
155 $2.00 ^^ $6.00
157.5 $1.50 ^^ $4.50
160 $0.75 ^^ $2.50
You’re looking for a quick reaction: get in, take profit, and step aside while the market finds new balance.
Contract 2: Medium-Term (7–10 Days to Expiry)
Timing Tip: Wait for NVDA to stall or consolidate after the initial bounce — this is when IV comes down and contracts get cheaper.
Strike Entry Price ^^Target Price
155 $3.00 ^^ $15.00
157.5 $2.50 ^^ $12.50
160 $1.80 ^^$9.00
Important: Be careful trading too close to earnings. Contracts tend to get overpriced right before and after earnings drops.
That wraps up the short-term NVDA view.
Stay tuned for more trades and setups across the MAG 7.
thecafetrader
Take care, and happy trading!
We’re taking a deeper dive into NVIDIA (NVDA) — one of the leaders in the MAG 7 — with a short-term trade setup you can apply to both shares and options.
Setup Context:
NVDA is pushing into all-time highs, and we’re now approaching the average analyst price target (around $180). While we don’t know how price will react at this level, traders should be watching for pullbacks and trend continuations — prime zones for entry.
If we get a strong move down, I see $153 as a high-probability bounce area — where buyers are likely to step in aggressively.
Price Target Outlook:
The final price target will depend on how price moves into this zone:
- If NVDA runs to $200 before pulling back, targets shift higher.
- If it tops out around $180, we adjust accordingly.
That said, an initial bounce toward $169–$170 looks reasonable.
Options Note:
If NVDA sells off hard and fast, implied volatility (IV) will spike, making options expensive and reducing your edge. This is a setup that could play out over 2–3 weeks, but the first bounce could be quick — so timing matters.
Strategy: Staggered Entry Using Two Contracts
Use two contracts — one short-term, one mid-term — to maximize reward while managing time decay.
Contract 1: Short-Term (3–5 Days to Expiry)
Trigger Entry: As soon as price taps the demand zone (~$153)
Strike Entry Price ^^Target Price
155 $2.00 ^^ $6.00
157.5 $1.50 ^^ $4.50
160 $0.75 ^^ $2.50
You’re looking for a quick reaction: get in, take profit, and step aside while the market finds new balance.
Contract 2: Medium-Term (7–10 Days to Expiry)
Timing Tip: Wait for NVDA to stall or consolidate after the initial bounce — this is when IV comes down and contracts get cheaper.
Strike Entry Price ^^Target Price
155 $3.00 ^^ $15.00
157.5 $2.50 ^^ $12.50
160 $1.80 ^^$9.00
Important: Be careful trading too close to earnings. Contracts tend to get overpriced right before and after earnings drops.
That wraps up the short-term NVDA view.
Stay tuned for more trades and setups across the MAG 7.
thecafetrader
Take care, and happy trading!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.