How to Make $395,000 Overnight
Here’s a great example of a Sharp Paper Insider article…
On October 22, a trader paid the asking price of $8.85 for 1,000 NVIDIA (Nasdaq: NVDA) January 20 puts, for a total cost of $885,000. It didn’t take long for this bold move to pay off.
The very next day, blue chip components Caterpillar (NYSE: CAT) and 3M (NYSE: MMM) each reported weak earnings – triggering a major sell-off.
The Dow Jones Industrial Average fell 400 points at the open – and the drop took most of the tech-heavy Nasdaq components down with it. After an hour of trading, NVIDIA was down by more than $12 per share – and the January puts were way up, at $12.80. That made yesterday’s $885,000 trade worth $1.28 million, for a paper profit of $395,000 overnight.
Did somebody know ahead of time that the blue chip earnings from Caterpillar and 3M would spark a panic sell-off? Who knows. Either way, it goes to show that following big orders like this can pay off handsomely.