NVDA reported after the bell yesterday and - as it has for several quarters now - surprised to the upside. But since the market is used to upside surprises, the initial ATC/ON price action was muted. Market went slightly bid on the open, but not enough to meet the IV expected move of 5.1%.
I closed the long vol IC trade I posted about yesterday @ 9:46 am, before full vol crush was realized. The $1.16 debit I paid was closed for $0.49 credit resulting in a 58% loss on committed capital. My 1% allocation cost my book 58bp.
Not a winner this time around, but the trade was well reasoned with proper risk management so no tears.
On to the next EA trade!
💀☢️