I’m taking advantage of the “Hope the White House has a plan” rally today to sell Nvidia (NVDA) out of my Jubak Picks Portfolio. Nvidia shares are up 3.05% as of 2:35 p.m. today, March 10, for a gain of $7.44 a share to $252.92. The shares are up 25.05% since my pick on December 29, 2017.
This sell is also an effort to clear the decks for my next move with Nvidia–buying put options on the stock as another hedge, along with my purchase of puts on Apple ($250 strike for September 18) today.
Nvidia is exactly the kind of volatile, momentum driven stock that climbs the most in any rally and that falls fastest in any sell off. Nvidia peaked for 2020 at $314.70 on February 19, 2020.
I sure wish I’d sold sooner but I thought that I would hold the shares through a relatively mild correction because of the company’s long term potential in cloud computing, artificial intelligence, autonomous vehicles, and other hot markets that require simultaneous processing of large amounts of data from disparate sources. The correction has turned out to be anything but mild. Later today I’ll post my hold/sell opinion on why Nvidia’s long term potential makes this a stock to own/re-buy after the bear has run more of its course. Nvidia, I would also note, is one of the 25 stocks I’m tracking in my Dip-O-Meter for a potential buy on the dip. Whenever that looks like a good idea.