Nvidia Corp. (NASDAQ: NVDA ) opened up 2011 with a surprise roller coaster ride
for investors. Share holders saw the stock experience a relentless surge from
$17 to $26, a multi-week chop-fest, and finally a fall back to $17 all in just
a short two months. Following this impressive volatility expansion NVDA has
settled into a $2.50 range over the course of the past two months. With this
morning's pop NVDA is flirting with breaking out of its range and reclaiming
its 50-day moving average. If NVDA is able to hold a break of this range traders
may consider bullish plays to exploit continued upside in the coming weeks.
Since NVDA is set to report earnings on May 12 the window of opportunity is
rather short (I'm not a fan of holding into earnings). Rather than
constructing some elaborate spread position, consider the simple purchase of a
NVDA June 19 Call option. Source: MachTrader At the time of this writing Tyler
Craig had no positions in NVDA. Follow Tyler Craig on Twitter@TylersTrading .
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