NEW YORK - Traders are pricing in a big move for Nvidia’s shares after the chipmaker reports earnings on Wednesday, though expectations for volatility are more muted than in the past, U.S. options markets show.)'s options are primed for an 8.7% swing in either direction by Friday, according to data from options analytics firm Trade Alert.
"Volatility and expectations had been a fair amount higher the last time around," said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group. BofA’s strategists expect the company to drive 9% of the S&P 500 earnings growth over the next 12 months, compared to 37% over the last 12 months.
Matt Amberson, founder of options analytics service ORATS, noted that implied volatility for out of the money calls is roughly equal to that of out of the money puts. That suggests options traders are not writing off the possibility of more upside for the stock, despite its already-hefty year-to-date gains.Nvidia is expected to post earnings of $5.59 a share, and a rise in quarterly revenue to $24.65 billion from $7.19 billion a year ago, according to LSEG data.