First trade of the new year: a swing trade on NVDA options

At the beginning of the Year of the Horse, my first trade was locked in on NVIDIA (NVDA) options. This reflects a long-term bullish view on the AI computing power sector and is also a precise bet on short-term volatility.

Trading Instrument

• Instrument: NVDA 260227 180 Call
• Operation: Bought twice during the session, then sold twice, completing a swing trade.
• Current Price: 12.75, up 26.49% from the opening price.

Trading Rationale

1. Directional View: AI computing demand remains strong. As the industry leader, NVDA has a positive long-term trend. After the stock price pullback, I judged there was a short-term rebound opportunity.
2. Volatility Capture: Intraday stock price fluctuations intensified, and option IV rose simultaneously, creating room for swing trading. I bought on price dips and sold on rebounds to capture the spread.
3. Risk Control: By trading quickly in and out, overnight risk was avoided. Position size was strictly controlled to limit potential losses from a single trade to an acceptable level.

Review and Reflection

• Strength: Profited quickly from intraday volatility, avoiding the erosion of time decay for the buyer.
• Weakness: High trading frequency requires significant attention and is prone to emotional decision-making. Future focus will be more on trend judgment to reduce unnecessary trades.

At the start of the Year of the Horse, the investment journey requires not just direction, but also strategy. This trade was a practice in option swing trading and a test of my own investment system.