Weekly Plan 8/25
About time Nvidia
Hello traders,
Last week’s spotlight stock FUBO 0.00%↑ went up 34% with negligible drawdown since the mention in the plan.
A few noteworthy trades from last week that a subscriber shared:
Other than that, we were also able to get the bottom of the range on crude oil with USO calls.
The 74c are at 2.4 from 1.05 and still have a week and a half left on them.
Moving on,
Last week at Jackson Hole, Powell all but verified the 25bps cut for the September meeting and has pretty much achieved the soft landing narrative. Has Powell achieved Peak Goldilocks? Only time will tell that.
We also have the big daddy of them all NVDA 0.00%↑ earnings this week. From all the datapoints it is almost certain that Nvidia will beat earnings estimates and will likely guide higher too. The question is if we will get a significant reaction from the
said beat on the stock price as it has rallied 44% from the 5th August precipitious drop due to the Japan carry trade unwind.
Now that rate cuts are almost certain, the main beneficiaries of this decision would be
companies that are rate sensitive. We were able to capture it with UPST earlier this month.
With the 30c options going 10x and are deep in the money at the moment.
So, what next? I’m eyeing a couple companies which I think would benefit hugely on rate-cut narrative.