Trade Alert: AI

After our 215% gain on our Nvidia trade today, we just placed another AI trade

May 23, 2024

A Gift From Nvidia

Thanks to a blowout quarter from the lead AI chipmaker Nvidia (NVDA 0.00%↑), we exited our earnings trade below on it today for a 215% gain.

Trade Alert: Earnings, 5/21/2024

Portfolio Armor

May 21

Feeling Bullish As regular readers know, we post our system’s top ten names every Thursday (with the exception of Thanksgiving, when we post them the day before). The Portfolio Armor web app runs the calculations every day the market open, though, and posts its top names each evening. The stock that was its #1 name on Monday is releasing earnings this w…

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Today’s AI Play

Today’s AI play was the Portfolio Armor web app’s #1 name as of Wednesday’s close. While Nvidia makes chips essential to AI, this company makes computers for AI.

Details below.

Sorry for the late post, but this trade didn’t fill until late today.

The company is Super Micro Computer (SMCI 0.00%↑), and the trade is a vertical spread expiring on August 16th, buying the $950 strike calls and selling the $960 strike calls for a net debit of $3. The max gain and loss on this trade per contract is the same as on the Nvidia trade: max gain of $700, and max loss of $300, with a break even at $953. This trade filled at $3, but it looks like you can probably get it for around $2.50 now.

Exiting This Trade

I’m going to set a GTC order to exit at $9 or $9.50.