Trade Alert: Three Bullish, One Bearish

Bullish bets on China, crypto, and one of our top names; a bearish bet on AI infrastructure.

Portfolio Armor

Jan 24, 2025

A rectangular image of a pretty blonde woman wearing a high-neck turtleneck sweater, placing options trades on her laptop. She is sitting at a modern desk with multiple monitors displaying stock charts and financial data. The setting is a well-lit, stylish home office with a cup of coffee nearby. The woman has a focused expression, and the background includes subtle elements like a bookshelf and indoor plants.

Three Bullish Trades

We’ve got three bullish trades today:

This is a Chinese stock we already have an open trade on from last fall. We’re up on that trade, but the stock is still cheap (it currently has a valuation rating on 9 out of 10 on Chartmill) and strong technicals.
This is a crypto stock, and we’re tailing a momentum options trader from our Market Watchers X List on it. We’ve had mixed results trading this one in the past, so we’ll see.
This was was one of our top ten names yesterday. It also has solid fundamentals and technicals according to Chartmill.

And one bearish trade:

Believe it or not, we’re betting against Nvidia (NVDA 0.00%↑) here. A Chinese start-up created its own competitor to Open AI’s ChatGPT, called DeepSeek, and some of the smartest people in tech, like Steve Hsu and Marc Andreessen are extremely impressed with it. The reason this seems bearish for Nvidia is the Chinese apparently accomplished this with only a few million dollars in capital, meaning they didn’t need lots of expensive chips of the sort Nvidia sells. And if they don’t need them, maybe everyone else doesn’t need so many of them either. We’re just looking for a modest short term move down in Nvidia here; we’re not betting on the company going bust or anything like that. But if you are long the stock, you may want to use the Portfolio Armor iPhone app to hedge. You can download it by aiming your iPhone camera at the QR code below (or by tapping here, if you're reading this on your phone).

Trade details below.

Bullish Trade #1

The stock is Qifu Technologies ( QFIN 0.00%↑ ), and our trade is buying the $40 strike calls expiring on March 21st for $2. The max gain on 2 contracts is uncapped, the max loss is $400, and the break even is with QFIN at $42. This trade hasn’t filled yet.

Bullish Trade #2

The stock is Coinbase Global ( COIN 0.00%↑ ), and our trade is buying the $330 strike calls on it expiring on January 31st, for $3.70. The max gain on 1 contract is uncapped, the max loss is $370, and the break even is with COIN at $333.70. This trade filled at $3.70.

Bullish Trade #3

The stock is Fox Corp Class A (FOXA 0.00%↑), and our trade is a vertical spread expiring on February 7th, buying the $50 strike calls and selling the $51 strike calls, for a net debit of $0.30. The max gain on 12 contract is $840, the max loss is $360, and the break even is with FOXA at $50.30. This trade filled at $0.30.

Bearish Trade #1

The stock is Nvidia (NVDA 0.00%↑), and our trade is buying the $141 strike puts expiring on January 31st, for $1. The max gain on 2 contracts is not even worth mentioning, because it would require the stock to go to zero by next week, the max loss is $200, and the break even is with NVDA at $140. This trade filled at $0.75.

Exiting These Trades

For the FOXA spread, I’m going to set a GTC order to exit at about $0.95, and lower that price, as necessary, as we approach expiration. For the straight calls and puts, I’m going to keep an eye on them as we approach expiration and try to sell them for more than we paid for them before then.