NVDA cap 235 hit

Cap: close under is a hit. Close on the level is a push. Graded on the regular-session close.

A cap is a price above the market where a large amount of options positioning sits. The idea is that this positioning can slow a move up there, so the test is simple: does the stock close under it? When it was posted at 14:59 ET, NVDA traded at 230.22, 2.0% below the cap. On the same map, the next level above was 240 and the next level below was 230. See the original post.

Price traded through the cap during the session (first 5-minute close on the wrong side at 10:05 AM ET), with a low of 229.28 and a high of 236.98. In the last hour price moved down 1.05, from 230.33 to 229.28.

The regular-session close was 230.57, 4.43 (1.89%) under the cap at 235. Under the rule (cap: close under is a hit), that is a hit.

NVDA finished the day down 2.9%, while SPY was down 0.4%. We found no single clear company-specific catalyst for the day in our notes.