
$NVIDIA(NVDA.US)$Alphabet(GOOGL.US)
Summary of the next steps strategy:
1. Whether it's the index or the Magnificent Seven, they have been correcting for a while, and the possibility of a sharp decline is extremely low now. It seems to be bottoming out and consolidating, waiting for a counterattack. The basis is that the main risks in the market are mostly priced in.
2. The visible market risks are still inflation and war, but I think the impact is limited. Any further lows would be an opportunity to add to positions.
3. Often, one-sided trends are the times to accumulate profits quickly. At other times, absolutely avoid going all-in aggressively; otherwise, in this kind of market, you're just breaking even. You must save enough ammunition for times like this, and then it's about what to do!
4. Focus on the Magnificent Seven: Google, NVIDIA, Tesla. Use the underlying stocks as a base. The underlying stocks won't have huge gains because they're already so high. Use short-term and long-term options to complement each other and quickly boost returns during the trend.
5. The explosive potential of other sectors like storage and optical is even more astonishing if a one-sided move happens. Get into the underlying stocks and options.
6. Summary: After catching a one-sided wave, you must sell the short-term options at high levels. Also, trade the long calls to reduce costs. The freed-up capital can be used for underlying stocks or flow into low positions to catch a rebound. The most important thing is to save ammunition for the next one-sided move.
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