Options Traders Anticipate Significant Movement in Nvidia Stock


Options traders are anticipating a substantial swing in Nvidia Corp.’s stock price following the company’s upcoming earnings report. Straddle prices in the options market, which involve buying both call and put options at the same strike price and expiration date, are being used to calculate the expected move for Nvidia.

According to Garrett DeSimone, head of quantitative research at OptionMetrics, the market is pricing in an approximately 11% move in response to the earnings, which is significantly higher than Nvidia’s average move of 7-8%. This implies a potential stock price of around $507 on the upper end and $406 on the lower end.

Investors who employ the straddle strategy would profit if Nvidia’s stock finishes Thursday’s session above the upper point or below the lower point.

Nvidia’s earnings report holds more significance beyond the company’s stock price. The sentiment surrounding Nvidia has been largely bullish, and there is a strong correlation between the company’s performance and the overall market. Disappointing news from Nvidia could have a negative impact on market sentiment, particularly considering the role that artificial intelligence has played in driving the market higher.

Analysts expect Nvidia to surpass its current quarterly revenue record by a wide margin, indicating strong demand. However, concerns regarding supply constraints make it essential for analysts to assess how well Nvidia is managing its balance between supply and demand, as well as understand management’s expectations for meeting demand for Nvidia hardware.

This upcoming earnings report from Nvidia is highly anticipated and is expected to provide valuable insights into the company’s AI division. It will be interesting to see how these results impact both Nvidia’s stock price and broader market sentiment.

  • Nvidia Earnings: Wall Street Predictions for the AI-Chip Giant
  • How Nvidia’s Jensen Huang May Be Shaping Expectations for Fed Rate Hikes
  • Nvidia Earnings: A True Glimpse into the AI Windfall
  • Why Nvidia’s Earnings Could Signal Positive Developments for Super Micro
Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Uber CFO Sells 100,000 Shares, Raising $4.5 Million

Next Post

Hunting Implements Restructuring Plan to Maximize Returns

Related Posts