Buying NVDA call contracts.
Nvidia (NVDA) is a market leader in the semiconductor space with some of the best innovation in the industry.
Shares have pulled back significantly from the November highs, but found support twice near the stock’s 200-day average.
Despite the selloff for tech stocks, semiconductor names have held up relatively well in recent weeks. This relative strength puts the group in a good position to rebound if the market gains traction.
Meanwhile, we have plenty of bearish exposure already set up in case speculative stocks continue to fall.
Buying call contracts at this level gives us a chance to profit if NVDA moves back towards the November highs. And buying in-the-money call contracts helps manage risk as these calls will retain some value even if shares pull back.