Nvidia has earnings on the 20th and mark my words if you have the proper position which I'm going to show you in this video you are going to make a ton of money and if you don't have the proper position you're going to miss out on a lot of cash from nvidia's earnings even worse if you're up on Nvidia and you don't play it properly on earnings you may give back a lot of the gains that you already have so this is the most important week for NVIDIA and look mark my words what's going to
happen is NVIDIA will beat earnings but the stock won't rise too much because expectations already baked in I'm going to show you a quick clip right now on what the options look like and why the call options are skewed right now and I'll explain to you what skewed is and then I'm going to tell you what Wall Street has in terms of expectations and how we are going to play Nvidia watch this clip and then let's talk about it you know I am long I don't have CS right now so I don't know I'll look
at something they're not going to be cheap that's for sure sure but I do think though going into the right before it the skew will be toward the upside the calls will be more expensive than the puts um so I'll look at that I think it's a more bound setup despite the the run in the stock because I just think expectations are lower eventually they have to fail on earnings eventually there's got to be something right so you you you don't get to go into Vegas and keep betting on one thing and have the hand
perform eventually but but they's still 85% of the market Market Tim said it every other stock that you look at in the sector the chart is horrendous this is the go ahead no Ian eventually you will miss but I mean is the Miss a function of analysts getting too hyped up over it and so therefore they're setting the stock up for a Miss if they didn't ratchet up their earnings expectations they would easily jump over I mean it's all matter right it's the context of it's a point of reference it's it's where you're coming into
so Karen's completely right you would like them to talk it down the problem is every time they've talked it down in the past it's leaped over them and they've looked silly all right guys so look there was two things that were really important that were mentioned first was the skew and second here in my notes is them actually having to talk down they want to talk down Nvidia but they can't because every time they talk down they beat earnings so now they don't talk down on Nvidia which is an issue because they mention something along
the lines of of you can't keep playing the same hand in a casino and expect to win so let me explain to you what this means first of all the calls are skewed and there's more investors looking to buy calls that's because there's more Bulls on Nvidia than Bears that's very interesting and that's one of the warning signs that I have for a stock that may be reaching a peak and that's why I said that you know basically mark my words I think that Nvidia will have good earnings but it won't rise more than 10%
and that's a really big bold statement for from me but that's pretty much what I'm sure of because I believe that they're going to continue to beat earnings it's very clear about the trend however the expectations in the market are so Rosy they are very bullish from all investors including myself that we are not going to be able to really pop on this stock like 20 30 40% like there were in the past because of expectations so let's go over how the chart actually looks like I'm going to go over my position on Nvidia and
how I'm playing it because I am going to give you two different plays on Nvidia that both will be profitable and make money I'm 90% sure obviously can't guarantee CU I'm not a financial adviser and I can't predict the future but this is how I'm going to be playing Nvidia and what I think is really smart uh in terms of the skew on the options we already talked about that and the expectations so now it all comes down to where are our expectations because the stock market the way you make money is by making smart
bets that beat other players of the stock market this is a really tough game where we're trying to take money from other smart people so luckily I've been at this for 10 years Uncle Henry has your back so let's go into this right so look I personally have a very unique view on Nvidia okay now my my view isn't the most unique because I'm bullish but I am moderately bullish which is very different from just being a blind bull okay there's a lot of blind bulls that just hold on to a stock and they're kind
of blind to when a stock pulls back that's not me I'm always looking for upside opportunity but I'm also looking for pullbacks I'm also looking to hedge and I'm looking to be smart with my money right so when it comes to Nvidia I have a few hundred shares in this portfolio my other portfolio I have just thousands of shares of Tesla that I'm just holding I'm not doing covered calls I'm not selling puts I'm not doing options at all on my Nvidia position in my other portfolio because I have been so bullish and because we
are in a bull market I have had shares of palen here of Tesla and Nvidia the three top stocks that I've covered on this channel over and over again because I'm so bullish and I have been 100% correct on that I hope that you've made boatloads of money on this plays I've actually left my shares uncovered guys uncovered which is kind of weird from an option YouTuber who's been making option videos for years and is the OG on the wheel strategy there's three strategies I'd be running right now the first one is literally just having
your shares uncovered just going into earnings and let your shares run however I will say that some of us have bigger positions and we should be playing options to a certain extent so right now what I'm doing in my main portfolio here which I've been documenting from you know a couple thousand up to almost 4 million now what I've been doing here is I have shares and I've been selling different types of options so let me explain to you these different types first of all I have a 148 covered call into Nvidia that's not going
to be that good because I do think Nvidia could go up to 150 okay so first of all this is something that I'm personally going to have to close and I personally will have to roll on my Monday call in Discord okay I'm going to have to roll this higher because 148 is a little low and I don't want to lose my Nvidia shares so remember when you're doing a covered call you get income from selling a covered call right you sell a call option you get income from selling that call right away that cash
enters your account immediately however now you may lose your shares if the stock goes above the strike price right so in this example or this position if Nvidia were to go to 150 155 I would lose my shares I don't want that so I will be closing out this 148 covered call and I will be selling a 155 covered call that will capture earnings okay let me show you what that looks like all right let's talk about the first position which is going to be a covered call so if I go to sell call option
we can capture earnings by just going for November 22nd okay right now Nvidia will have earnings on November 20th so on November 22nd if I sell a call that will capture earnings you can see how if I go up here to 150 for example this is an okay option the implied volatility is wild it's 101% implied volatility the volume is I don't even know what to say this is astronomically high volume this is one of the highest volumes I've ever seen and that's that actually means that there's a whole lot of buyers for NVIDIA options
right now it's strictly in an Nvidia option Market as well as Tesla as well as paler okay paler has been a huge win for me but right now we see just crazy call buying okay on Nvidia so that is a little bit scary because Nvidia is likely to go up there is a whole lot um more volume actually on call options than put options in fact look this 150 call option has 165,000 volume but if I show you what the one you know let's go to 150 on the put it has only 8,000 do you
see what kind of skew that is do you guys notice that the volume literally on calls is 20 times more I can go to an out of the- money option right at 140 it's going to have more volume I already knew that right because 150 would be you know an in the money put option which is a little bit unusual for people to buy but even an out ofth money option like 140 which would be the biggest hedge right now okay this would be the biggest hedge if you want to hedge you would be well
buying put options okay selling put options buying put options it's the same volume here so if someone wants to hedge their Nidia position they would be buying puts but you can see here how the volume is only 29,000 versus 160,000 Plus on the call option so there is a whole lot more call options and I am bullish on Nvidia I do think expectations are priced then so when we do get the good earnings the stock will go up but it's not going to pop up like huge amounts okay I'd be happy if it does don't
get me wrong if Nvidia goes to 160 170 great but that is not what I expect the chances of that happening are very low okay my base case would be about 152 153 like I could see Nvidia just being up like 5% 6% and you know that would be some some good money to be made so I would look at doing a cover call so sell call at 155 because I don't I don't think it'll go to 155 I think it'll be 152 153 we'll get a pop but not huge pop right so right here
you will basically collect $250 and hey that's some extra money in the pocket and that's that's my first strategy that I would basically do on Nvidia just a simple covered call strategy the next thing that I would do is if you want to make a longer term play and you are bullish on AI like I am I'm very bullish on AI uh I would do a leap option on Nvidia and say hey hey I don't know what's going to happen during this earnings I'm bullish I'm I'm with Henry I you know he's been right I'm
bullish I I hold Nvidia whatever your reasoning is but hey I don't know what's going to happen on the 20th I'm bullish in the long term for sure then I would do something a little bit more longer term in nature okay so instead of having to predict short-term you know what's going to happen I know a lot of folks that I work with are retired and you know we don't necessarily care about the short-term one week we want to get richer for sure over the next you know several months several year we want to have
a positive 2025 except ET right so it's it's also about that long-term view so here's what I would do on a long-term view I would go to buy call and I would do something like uh you can go for May you can go for a halfe option okay let me show you a halfe option usually when I do a poor man's covered call or leap or what I'm showing you right now which is buying a longer term call option it's all the same thing right uh I usually do go out about 9 months of expiration
but here I'll show you an option that's going to just go out 180 days okay this gives you 180 day bet that's very good right you get 180 days to see what will happen to Nvidia as the expectations continue to rise and with 100 uh 80-day option you basically have two earnings events so you get this earnings and next earnings so that's that's really good right because something that does happen let me tell you about a new topic that I haven't covered on this channel it's called post earnings drift what post earnings drift means is
when a stock reports earnings and it's positive and it goes up let's say you get a momentum swing in the stock 8% 10% you name it right x% and upside you will typically see the stock do some more drifting or some more running to that side okay let me explain if the stock goes up 10% over the subsequent couple of months it may continue to go up another 5 10% it typically kind of swivels up right it's it's called an earnings drift so it drifts towards that side right that's actually really common that's something that
I've seen over and over again even back when I was in college and not even really trading so much yet I was not even fully Trading doing option trading full-time I didn't have my uh Goldman Sachs uh time yet I didn't work at Goldman Sachs yet I was just taking my basic courses and my finance degree and they were already telling us about post earnings trip so that's something that has been covered long long time ago but I do see it in action all the time I see it happening in the market all the time
we've seen it with palen here actually palen here reported good earnings we had earnings drift and it got included in the S&P 500 fantastic it went up then NASDAQ and then you get a whole lot of earnings drift essentially in talenter case there was other factors but earnings drift was definitely part of it so what I think will happen into Nvidia and why I'm showing you this 180 day expiration option is because if Nvidia goes to $152 per share and the next week right after earnings we can still see it Go to0 and 170 over
the subsequent months because of earnings drift okay so I would do a uh leap option where I would just buy something like the 130 okay if I expand the 130 here there's not a whole lot of volume that's really good actually there's not a whole lot of competition for this option and the implied volatility is actually half of what we see right now in the short term so if you want to kind of ignore the short-term volatility of everyone's trading Nvidia and options are expensive especially when it comes to buying them okay in the short
term I think it's smart to sell them in the longer term I would say that it is smarter to buy uh an option on Nvidia to really get in behind Nvidia and to ride ride the earnings drift to ride the momentum to ride the stock uh you know performing very well so you can see how the implied volatility here is just 53 which is half of what we currently have going on so I would buy the 130 okay this will be about $2800 which is much better than paying $4,000 or $155,000 for Nvidia stock if
you were to buy 100 shares it's a lot better actually so this is a lot cheaper it's like a very small fraction of having to own 100 shares but the leap option gives you the same power and the same strength and uh you can basically buy bicep you know bicep over tricep on the on Nvidia without having to put up 100 shares worth of capital so you really get that that strong upside without having to put up all that capital I would say that this is hands down one of my top option strategies that I
would use to really scaling your wealth a lot faster really getting to that retirement point and I would just buy the 130 call option okay the bid ask here is actually very good very good bit ask spread there's only a 30 C difference so fantastic the Delta here is 68 and I've said in many of my videos uh the ideal Delta for a leap option is going to be around that 7 Delta sweet spot it gives you that good upside without becoming too expensive so I would straight up buy this uh call option and then
if you want to decrease your cost essentially you can sell shorter term call options to generate some income like a like a covered call except this would be a poor man's covered call because well for a covered call you need 100 shares for the leap option here you don't need 100 shares so that's uh what makes it a really strong strategy so I would look if you want to be safe by the way and you're like hey I don't want to risk losing my shares I don't want this leap option uh to go into the
money right what you can do is you can go a little bit higher all right so you can go for the 160 covered call here you can see that there's good volume the implied volatility is actually a lot lower for January a lot lower I thought it would be higher I thought it would be somewhere in between 50 to 100 but it's still on that bottom end of 50 so that's not that good because when you're selling options you want higher implied volatility but nonetheless I mean here you get $600 so if I go to
sell call all right you get $600 uh and you really get that $600 versus what you pay which is about 3K thereabouts so that's about a 20% return that you can get in 60 days which is about 10% per month so you can get a 10% per month return on Nvidia by running this strategy which is obviously a fantastic return 10% per month you will well do well over 100% per year in return if a strategy like this works out in in a single year which it will for NVIDIA I strongly believe Nvidia will will
be up so this is actually one of my uh best plays this is what I'm going to be opening up Monday morning in my Discord Community this is one of the positions as well as the covered call position and honestly I will be selling puts as well I will be selling puts on a video let me show you the several sell puts I have and then give you a new recommendation for sell puts because um look we have 132 oh actually I had some options expired profitably So currently I only have the 132 I would
I would actually sell 135 puts right now Nvidia if you want more option strategies more of my ideas on Nvidia you should really check out the last Nvidia video I made and watch it in its entirety because this week on Nvidia is the biggest opportunity that I've seen literally you should be taking advantage of this you should be making money hand over fist guys right now it is an easy time in the market make as much money as possible because there are going to be times where the market is not going to be as hot
it we may see a bare market and I will make some videos on how to protect yourself and manage your risk because I really care about your overall well-being when it comes to option trading you want to understand how to manage your portfolio from A to Z in good and bad times but right now it's a good time so get your wheelbarrow out put all the cash you can from the market and scale your wealth really fast and if you need help scaling faster I'm more than happy to coach you oneon-one it's the first link
in the description I'd be happy to work with you either way catch you in the next video make sure that you check out another Nvidia video that I just recently made
