Yesterday we identified numerous setups with MACD curling upward, suggesting further upside was likely. That thesis played out today as we got a huge impulsive move up, taking many names toward resistance zones noted yesterday.
For options traders, moves like this spike implied volatility, making contracts very pricey to buy intraday.
So if you’re long options, remember to focus on your profit targets instead of waiting indefinitely for upside targets to hit. Days like this are perfect for selling the rip, especially short-term and out-of-the-money options. Take advantage of inflated premiums.
New trade idea $NVDA
A strong gap up today in line with the broader market, opening just above the 10/12 VWAP pivot zone. A daily close above this area triggers the bullish thesis targeting the upside gap at $449.12, especially as MACD keeps curling up.
If we get any sort of support/resistance flip tomorrow, watch the VWAP zone from $428.30-$431.50. A close below $428.30 would invalidate this idea.
The key is closing today’s session above the prior VWAP level from the recent pivot low. That keeps the upside momentum intact for a potential move toward that gap fill.