This morning, I went long NVDA with a small tranche of Oct 30 calls. My buddy Sam has profited handsomely by calling a bottom in this stock when he was out visiting me the last week of July. He went in at 19 and now it's trading at 30... nice 50% move!
I think there is some near-term upside there as our multiple is only at 33 (I think it will top out at 40). The stock will also run to end of quarter thanks to mark-up week. But I'll be getting out on Wednesday or Thursday. I think the market is too optimistic. These guys are not really as levered to the PS3 launch as people think, and there are still massive supply problems there. They may be a PC play but overall I'm not bullish on PC sales since the PC experience is getting worse and worse by the day.
Wish me luck... the calls are trading at $1.75 as I write this.
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