Nvidia (NVDA): Profit-Taking

Nvidia (NVDA) reported earnings on Wednesday after the close and ended up exploding to the upside. I very rarely ever make moves in after-hours trading, but I had to take profits as Nvidia had outgrown the portfolio allocation targets by full integers at this point. In fact, even after the sale, Nvidia is 8.42% of the portfolio where the target allocation is 7.14%!

My limit sell order went through at $374.79, locking in +2,291.77% in gains on shares I had bought at $15.67 when I opened the position on September 6, 2016. The sale lowered my per-share “cost” -$29.25 from -$97.65 to -$126.90 (a negative per-share cost indicates all capital has been removed in addition to $126.90 per share added to the portfolio’s bottom line in addition to each share’s current value).

From here, I’m going to let Nvidia continue to run hot, so my next sell target isn’t until $443.58, a price calculated using a combination of methods including Fibonacci, where NVDA will have dramatically outgrown the target allocation size for Investments in Play.

My next buy target is $234.15, a past level of support for the stock and more than –37.5% lower from where I just took profits. Why?? Because nothing goes up in a straight line like this. Sure, Nvidia may never pull back down that low, but this is why I have a plan for both directions. Obviously, I still hold the vast majority of my position, so I don’t need to be a hurry to replace shares I sell. If I can’t get the discount I want, then I’m happy with what I have. Let it ride, baby! 😉

NVDA closed the week at $389.46, up +3.91% from where I took profits.