[by a ratio of] about 2 times to 1. That's nothing new, we've seen that trend over the last 20 or so trading days. Taking a look at the at-the-money options out until Friday expiry, we can see that the options are implying just south of a 7% move [in either direction] between now and then," XP Investments managing director Bonawyn Eison said Tuesday on CNBC's "Fast Money.
"The trade that sticks out to me, about 10,000 of the August expiry 500-calls traded [for] around $12, putting your breakeven around $512," said Eison. Those were Tuesday's most active contracts, and allow buyers of those calls to play for an upside move of at least 5% while risking only about 2.5% of the current stock price, as opposed to buying the stock outright and facing potentially much larger losses if Nvidia were to disappoint after the bell on Wednesday.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »