Here’s the Real Reason Nvidia is the Only Stock That Matters

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You probably understand correlation in the markets – assets moving together in some kind of relationship, even if that happens to be inverse. It usually makes intuitive sense. If stocks drop, safe-haven assets like gold or bonds move higher as the crowd looks for safety. That makes sense, right?

The dispersion trade, on the other hand, doesn’t quite jump out at you the same way, even though it’s really what’s running the show right now. This trade is when folks try and take advantage of the expected volatility in index options versus the expected volatility in components of that index. In this case, the index is the NASDAQ-100… and the stock in question is, you guessed it, Nvidia.

Right now traders are crazy for it. They can’t get enough. Now that Google and Apple have lost their luster and are running flat, Nvidia is the only game in town.

The stock is going parabolic right now, so watching the volume of calls here is going to be the key to understanding what’s coming around the corner.

Let’s jump in…

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