The July heat is officially here Tuesday — and it’s not just the weather…
This is historically one of the most bullish stretches for the S&P 500, and it’s already showing up on the charts. The first two weeks of July have been red hot going back to 1950, and the second half of the month doesn’t look shabby either.
Add in the fact that nearly every sector trends higher in July — including Technology (XLK), Financials (XLF) and Communication Services (XLC) — and it’s clear this is one of the best months to put capital to work.
So what’s the best way to play it? I’m looking to stack those seasonal tailwinds with a smart momentum trade on one of the most powerful stocks in the market: Nvidia (NVDA).
Targeting a Measured Push — Not a Moonshot
I’ve been telling you guys for months now that we’d likely hit new all-time highs by July. That prediction played out right on schedule. Now that the market has broken out, I want to be in the names that are already leading — not lagging and trying to catch up.
NVDA is one of those names. The stock continues to march higher after its recent breakout and has plenty of momentum heading into earnings season. On Friday morning, I walked through a high-conviction July trade setup that gives us 108% upside if NVDA gains just 1.5% over the next couple of weeks. That’s not asking for much — especially since the stock moved 1.5% that same morning.
The play is structured as a debit spread targeting the July 18 expiration. I also shared a more aggressive version with up to 220% potential if NVDA stretches a bit further to 165 by expiration. Either way, we’re not swinging for the fences. We’re leaning into strength — and letting the calendar work in our favor.
Base Trade (More Conservative)
-
Strike Prices: Buy the 160 call, sell the 162.50 call
-
Expiration: July 18
-
Target Move: NVDA to rise just 1.5% to close above 160 by expiration
-
Max Return: 108% if NVDA closes above 162.50
-
Approximate Debit (Cost): Around $0.75 to $0.80 per spread (as of recording)
Aggressive Trade (Higher Upside)
-
Strike Prices: Buy the 162.50 call, sell the 165 call
-
Expiration: July 18
-
Target Move: NVDA to close above 165 by expiration
-
Max Return: 220% if NVDA reaches 165+
-
Approximate Debit (Cost): Around $0.78
-
Exit Strategy: Set a GTC sell order at 117 (for +50%) or 156 (for +100%)
Why Momentum Still Matters
Yes, NVDA has already run. Yes, it looks extended on the daily chart. But you could have said the same thing weeks ago — and missed out on a 50% gain.
This is just one of those names that knows how to run. I don’t want to fight that. I don’t want to bet on a pullback. I want to ride the wave.
We know July is a strong month. We know tech stocks have been leading. We know NVDA loves to move when it breaks out. That’s why this trade is my top setup for July. We’re not guessing. We’re stacking edge on top of edge — and putting ourselves in position to get paid.
Graham Lindman
Graham Lindman Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
Important Note: No one from the ProsperityPub team or Graham Lindman Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Simply Choose the 1 That Fits Your Goals
Quick question:
How would you like to get your hands on a system that not only gives you the best income setups…
But also allows you to choose your own risk level and its corresponding target ROI.
I’m talking about the all-new Income Machine.
Last week, it flagged COST, SNPS and ABT.
And today, you can access the next three income trades ready for the taking right away.
While I cannot promise future returns or against losses…
In my opinion, the Income Machine is proving to be the best guide to trading these slow summer months.
That said, you can get access to the Income Machine at NO cost…
If you’d like to get started with it as soon as today…
Here’s Where You Take the First Step
The profits and performance shown are not typical. We make no future earnings claims and you may lose money. The majority of trades shown are from historical data in order to demonstrate the potential of the system.
