Summary4 min read

Wealth and Health Podcast

Episode: 🚨 NVIDIA CRASH! 🤯 My MUST-SEE Trade for HUGE Profits NOW! 🚨

Host: David Jaffee
Date: March 10, 2025

Episode Overview

In this episode, David Jaffee analyzes the recent volatility in NVIDIA’s stock following an earnings report and outlines his preferred options trade to capitalize on these market moves. He provides a detailed walk-through of his trading logic, the strategy mechanics, and the risk/reward considerations. The episode targets retail traders looking to trade options profitably while limiting risk, offering step-by-step instruction and insight.

Key Discussion Points & Insights

1. Market Recap and NVDA’s Volatility

(Timestamp: 00:59–02:00)

David recounts NVIDIA’s rollercoaster performance:
- Pre-earnings: Trading around $130.
- Post-earnings (after hours): Shot up to $136.
- Major market sell-off drops it to $120.
- Despite a strong overall market, NVDA hits a new intraday low at $116.40.
Insight: A lower low in a rising market generally indicates bearish sentiment, but David hints at a potential rebound.

2. David’s “Must See” Trade on NVDA

(Timestamp: 02:01–03:45)

Strategy Overview:
- Structure: Buy a $127 call, sell a $132 call, and sell a $112 put – all expiring March 14, 2025 (14 days from placement).
- Position Size Example: For larger exposure, buy 3 debit call spreads and sell 6 naked puts, scaling up from the base trade.
- Premium Collected: $74 per basic unit; $222 when scaling up.
- Profit Profile:
  - Max gain: If NVDA closes above $132 on expiration. The call spread pays out $1,500 for 3 contracts, and the puts expire worthless. Add the credit received.
- Risk Profile:
  - Max risk: If NVDA drops below $112, the naked puts are assigned. David underscores the possibility, referencing NVDA’s recent dip to $116.
David’s Rationale:

“Even though the market was up around $93, Nvidia traded all the way down to 116.40. So it made a lower low today, which is usually a bearish sign. However, because the market was so strong heading into the close, I do think that there’s a decent possibility that the market is going to rebound in the upcoming week.” — David Jaffee (02:00)

3. Managing Size and Capital at Risk

(Timestamp: 03:10–03:45)

David illustrates how to scale the trade for larger capital by multiplying contracts (e.g., 3 long call spreads and 6 short puts for higher credit and maximum profit).
He cautions listeners on sizing and the need to weigh risk should the stock break to new lows.

4. Guidance on Trade Risks and Rebounding Markets

(Timestamp: 03:45–03:55)

While bullish for a market rebound, David remains pragmatic, acknowledging that NVDA could drop below the short put strike, and listeners should be aware of the downside.

“Earlier today, on Friday, February 28th, Nvidia traded down to around $116. So it’s definitely not out of the question that it could trade below 112 over the next 14 days.” — David Jaffee (03:45)

5. Call to Action & Community Engagement

(Timestamp: 03:55–04:07)

David encourages listeners to leave comments, subscribe, and follow additional videos for further learning.

Notable Quotes & Moments

On the Setup:

"The best NVIDIA trade that I would make right now...is to buy the 127, sell the 132 and then sell the 112.” — David Jaffee (01:40)
On Market Sentiment:

“So it made a lower low today, which is usually a bearish sign. However, because the market was so strong heading into the close, I do think that there’s a decent possibility that the market is going to rebound in the upcoming week.” — David Jaffee (02:04)
On Maximum Profit Route:

“...If Nvidia was trading above 132 at the end of the trading day on March 14...the call debit spreads would yield the maximum profit of $500 for every contract. And because we have three call debit spreads, we would then realize a profit of $1,500.” — David Jaffee (03:30)
On Trade Risk:

“The risk here is that the market does not continue rebounding and that the market crashes and Nvidia trades below $112...it’s definitely not out of the question.” — David Jaffee (03:45)

Important Timestamps

00:59 — Start of NVDA analysis and weekly recap
02:01 — David details his preferred options trade
02:45 — Discussion of profit and loss scenarios
03:10 — Scaling the trade example
03:45 — Addressing the risk of selling naked puts
03:55 — Community engagement and next steps

Structure and Tone

David maintains a pragmatic, calm, and instructional tone, balancing optimism for profit with clear-eyed analysis of risk. He offers step-by-step explanations while encouraging community interaction, always focusing on practical education for retail option traders.

For additional resources and free training, David invites listeners to visit beststockstrategy.com.

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Transcript5 lines

[00:01]
A
Ever notice how ads always pop up at the worst moments when the killer's identity is about to be revealed during that perfect meditation flow On Amazon Music, we believe in keeping you in the moment. That's why we've got millions of ad free podcast episodes so you can stay completely immersed in every story, every reveal, every breath. Download the Amazon Music app and start listening to your favorite podcasts. Ad free included with Prime.
[00:35]
B
My name is David Jaffe. Welcome to the wealth and Health Podcast where you'll learn valuable skills and positive habits that will improve your life. This podcast originally aired as a video on my YouTube channel at YouTube.com Best Stop Strategy the Wealth and Health Podcast is brought to you by beststop strategy.com.
[01:00]
C
The best Nvidia Trade that I Would Make Right Now it is currently February 28, 2025. Nvidia has had a very volatile week. After it reported earnings it was trading around 130 prior to earnings and then after hours it traded all the way up to 136. However, on Thursday the market crashed and it was down around $95, causing Nvidia to trade down to around 120. And then today, even though the market was up around $93, Nvidia traded all the way down to 116 40. So it made a lower low today, which is usually a bearish sign. However, because the market was so strong heading into the close, I do think that there's a decent possibility that the market is going to rebound in the upcoming week. As a result, the trade that I would make and the trade that I think is the best in this specific moment would be to buy the 127, sell the 132 and then sell the 112. From a days to expiration standpoint, we would put on the trade to expire on March 14th. That would give us 14 days until expiration and then we will put this on as a 11 2. So we would sell two and then we would buy one call debit spread and then this would give us a credit of $74 for every single trade that we put on. If we wanted to go larger we can increase this to 6 and then increase this to 3. Therefore, this would give us $222 of credit and our maximum profit here here would be $1500 plus the credit that we receive. The scenario where we would realize our maximum profit will be if Nvidia was trading above 132 at the end of the trading day on March 14. In this situation, the 112 naked put options would expire worthless and the call debit spreads would would yield the maximum profit of $500 for every contract. And because we have three call debit spreads, we would then realize a profit of $1500. The risk here is that the market does not continue rebounding and that the market crashes and Nvidia trades below $112. Earlier today, on Friday, February 28th, Nvidia traded down to around $116. So it's definitely not out of the question that it could trade below 112 over the next 14 days. If you have any questions, leave a comment below. If you like this video, then subscribe to the channel and please click on the video that's popping up on your screen right now because YouTube believes that you would enjoy it the most.
[04:07]
B
Visit beststockstrategy.com and submit your email address. To receive valuable free training, please give this podcast a positive reading and review. If you have any questions, visit beststock strategy.com and send me a message.
[04:31]
D
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