NVDA has potential to rise after earnings; downside risk is limited, making a bullish options play tempting.

This tightening of this range will be resolved next week as Nvidia reports earnings on Wednesday after the close.

Now, I'm hoping that Nvidia runs up ahead of earnings. The scenario I had outlined is maybe on Monday it does an inside day. So, we kind of see something like this, contained within today's range.

It does that. Tuesday maybe we see a shakeout, and then it sets up like this for Wednesday. And then what? Well, then you've got to look at it and say, "Do you want to make a bet?"

Because if earnings are after the close, it has the potential to shoot higher. And is the downside risk that bad? I don't really do this often, but this might be if this type of a scenario sets up, I might be tempted to buy some call options on it.

I'm not really sure. I, of course, will let subscribers know about that.