Today's Key Volume Trading Target: NVIDIA (NVDA)

Posted in General, Options, pre-market 
August 13th, 2008

NVIDIA Corporation (NASDAQ: NVDA) is leading the stocks pre-market as the most active NASDAQ trading issue, although it isn’t really the highest gap-up seen.  Shares are trading up about 5% at $11.63 pre-market at 8:45 AM ESTand we have seen about 513,000 shares trade hands.  The company’s earnings were a disappointment to most since it posted a loss after a $196 million charge to cover its technical issues in graphics processors.  But traders cheered that the company would spend $1 Billion to buy back shares as its market cap is currently about $6 Billion.

More importantly is that this stock has been beaten like a rented mule over the last year.  Its 52-week trading range is $10.55 to $39.67, so $10+, $11+, and on are still at far lower prices than have been seen before it announced problems with the new graphic processors.  We’d also note that its last short interest was up more than 6 million shares to 27.1 million. We’d also note an elevated interest in call options that was seen ahead of earnings as well as yet another issue in the stock.

This should be one of the focal stocks for traders today.

JON OGG

AUGUST 13, 2008

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