Today I entered a directional put spread on NVIDIA Corp (NVDA) following a clean Evening Star reversal pattern at technical resistance. This is a defined-risk play that profits from downside movement into next week’s expiration.
Trade details
Expiration: Nov 14, 2025
Long Put: $190 @ $10.80
Short Put: $185 @ $8.41
Contracts: 5
Net Debit: $1,195
Max Profit: $1,305
🔗 View on OptionStrat
📊 Logged in Trade Log
Technical backdrop
Daily chart
NVDA rallied hard through September and early October, pushing from the mid-$170s into the low $190s. Price action formed a clear Evening Star pattern at current levels: a strong bullish candle followed by a small-bodied indecision candle, and now a bearish close completing the reversal signal. RSI sits near 58 — elevated but rolling over. MACD histogram shows weakening momentum after the recent push. The setup suggests exhaustion at resistance.
Why this setup
The Evening Star at $193 resistance combined with momentum divergence creates a high-probability setup for mean reversion. NVDA has room to retrace toward $185–$180 without breaking the broader uptrend structure. The defined spread limits risk while capturing the technical edge: if NVDA pulls back into support, the position profits. If the pattern fails and price continues higher, loss is capped at entry.
This trade fits my systematic approach: identify a valid bearish reversal pattern, structure a spread with favorable risk/reward, and let the setup resolve within the defined timeframe.
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Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.