NVIDIA Corp - NVDA - close: 14.99 change: +0.05

Stop Loss: 14.45
Target(s): 16.75, 17.90
Current Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
The semiconductor stocks continue to trade inside their bullish channel. NVDA has been a pretty good performer in this group. Over the last three weeks NVDA has been consolidating sideways with a neutral pattern of higher lows and lower highs. While that pattern is normally neutral the prevailing trend, which is up, should win out. I am suggesting a trigger to launch bullish positions at $15.15. This is a little bit aggressive since the SOX semiconductor index looks overbought. We want to keep our position size small. If triggered at $15.15 we want to take profits at $16.75 and at $17.90. Our time frame is two or three months. We'll try and limit our risk with a relatively tight stop loss.

Trigger @ $15.15 (small positions)

Suggested Position: Buy NVDA stock @ $15.15

- or -

Buy the 2011 February $15.00 calls (NVDA1119B15)

- or -

Buy the 2011 March $15.00 calls (NVDA1119C15)

Daily NVDA chart:

Hourly NVDA chart:

Entry on December xx at $xx.xx
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume: 13.2 million
Listed on December 30th, 2010