Nvidia earnings: What the options market is anticipating

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Nvidia Nouvelles

Stock Market,Options Trading,Earnings This Week

US equities (^GSPC, ^DJI, ^IXIC) could be in for a stir as Wall Street gears up for Nvidia's (NVDA) latest earnings due out this Wednesday, August 28...

) latest earnings due out this Wednesday, August 28. Options trading betting on the stock is substantial as, according to data from BayCrest, options could move the stock 9.9% in either direction with nearly $300 billion on the line for the chipmaker's market cap."There's a lot of demand for Nvidia chips, but is this the reason to go out and buy every other stock in the S&P 500 ? That was last quarter, we'll see what happens this quarter.

Is this something that's in line with what we've seen past quarters or is this something that's out of the ordinary?This is however, the largest percentage implied move that we've basically ever seen.

And so I think there's a, there's a sense from clients that they're willing to buy the stock lower, but unsure if the stock can continue to surge higher.I mean, we all know there's heavy demand for the NVIDIA chips.That being said, the options markets are saying stock could add another $300 billion in market cap on, on this Wednesday afternoon.

Watching NVIDIA tick by tick last quarter, as you mentioned, was really interesting where I don't think, know if we've really been seeing that before, where NVIDIA was up about 9% after hours. So if you have NVIDIA that goes up a lot, and then there could be some dispersion for the rest of the market where the other stocks need to go down where the markets is essentially staying sideways.And um it wouldn't be that surprising because the, the dominant positioning in the S and P 500 options world is for the stock market to stay relatively muted, kind of sideways most days.

 

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