How to Take Advantage of Being Too Early to a Trade. Plus, New Trade Ideas!
Hitting All Time Highs for MRVL, SOFI Breaking Out, Revisiting NVDA & AVGO
Being late to a trade is nothing new. Every day you are shown massively successful trades made by someone else building their account, not yours. You missed it.
Like the $TRUMP meme coin trade. Did you miss out on that one? Me too.
These “misses” are endless and do not tell us much about our own trading strategy.
Being early to a trade is an entirely different story. A lot can be learned and a lot of money can be made.
NVDA
NVDA is a great recent example.
The trendline is clearly broken but that was not what we were looking for before taking an upside trade.
A clean break of the 50-day simple moving average (SMA) was needed and more importantly, it was needed without any stalling.
NVDA stalled.
Here’s a look at the notes posted for upgraded subscribers.
The price action should have prevented anyone from entering a bullish trade. If you got in, there was a quick opportunity for profits but that faded fast.
So, what is the good news?
This trade is back on! You can use the same levels and strike prices, just consider moving the options expiration date out a month.
Here’s a link back to that post: Semiconductors Ready to Rip
I think we see upside for both NVDA and AVGO in the next couple of weeks and will likely enter these trades if the action plays out to create the right set up.
MRVL
I’m going to add MRVL to the semiconductor mix.
This ticker is hitting new all-time highs. It has taken a short break and is now retesting the recent high of 126.12 I like it to break through for more gains.
If we see new highs I don’t see how I won’t get in this trade. It looks solid to me.
We had a nice run after calling for a breakout at the end of 2024 and it looks to continue.
If shares reject here there is an opportunity to collect cash using a covered call strategy. If you own 100 shares you can sell a call option against them and collect the premium.
The juice is high on the MRVL options, creating more expensive options which can be profitable for options sellers. It looks like you could bring in a 3.6% cash gain in just two weeks.
More on that in the trade details for the week.
SOFI
A really nice bull flag followed by a break out for SOFI and we might see a run back to its all time high around $27 if this momentum continues.
That would make a lot of investors very happy.
On the trading front, I like the idea of a breakout trade here.
RSI is trending higher and above the midpoint, the 50-day SMA was tested and quickly treated as support, and momentum is to the upside.
The key for SOFI is to take out the recent high, retest it, and then cleanly bounce for higher highs above the 50-day SMA.
Take extra time to study these trades over the long weekend and send me any questions you have. I am always interested in different perspectives.
Maybe you think a different strike price or expiration date makes more sense.
Maybe you see a different support level.
Let me know!
Now to the trade ideas for MRVL and SOFI.
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