NVIDIA Corp. - NVDA - close: 17.37 change: +0.20

Stop Loss: 16.70
Target(s): 19.50
Current Gain/Loss: + 0.0%
Time Frame: 1 to 2 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
My market bias is still bearish but it looks like we have a chance to scalp a couple of points in NVDA. The stock has been bouncing from support near $17.00 for several weeks. Today shares slipped to $16.74 before bouncing. It could have been bulls front-running a dip near the 200-dma. We want to buy the intraday bounce and exit a few days later. Hopefully we are in an out in less than two weeks if not sooner.

I do consider this an aggressive, higher-risk trade. We want to buy NVDA (or calls) now and exit at $19.50 before NVDA hits resistance again near $20 and its 100-dma. Obviously there is no guarantee NVDA will bounce or even get that high if the stock market's oversold bounce rolls over too quickly. Keep our position size small to limit our risk.

- Small Positions Only -

Suggested Position: buy NVDA stock @ current levels

- or -

buy the July $18 call (NVDA1116G18) current ask $0.68

Annotated chart:

Entry on June 10 at $xx.xx
Earnings Date 08/11/11 (unconfirmed)
Average Daily Volume: 19.8 million
Listed on June 9th, 2011