NVDA Chips are Up

The Daily chart above on NVDA shows a Bullish setup:

• Double/Triple Bottom
• AB/CD pattern confirmed by price exceeding the B point, and on high volume.
• The C point is only a 25.2% retracement. That's Bullish.
• Today and yesterday form a Trend Kicker candlestick pattern.

For a Target, take a look at the following:

The vertical, thick, white line segments show a measured move of the double bottom.

The diagonal, thick, white line segments show the AB=CD measured move.

The 161.8% Fibonacci extension of the green range is approximately 308. This is between the 61.8% and 78.6% Fibs of the yellow range.

Previous swing high was 313.30.

I like a conservative Target of 308.

Near the equity market close today I got an April 14th 290/295 Call Option Spread for $1.71. A spread will greatly reduce the capital at risk, limit the maximum risk to the cost of the spread, and help mitigate the Theta time decay of the long option in the spread.

I entered 2 sell orders. One is a $4.90 limit order for the spread, since it has a maximum value of 295-290=$5.00. The other is to sell the spread with a limit order at the mid-point between the Bid and Ask if NVDA stock price hits 308.

Risk: $171

Reward: It depends how long it takes to hit the Target, but the maximum reward would be $490.

R:R = 490/171 = 1:2.9 which is great.