Traders are confident Nvidia stock will rise after earnings, according to options market

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Nvidia is set to report its latest results Aug. 28, and the numbers could serve as a gut check not only for the chipmaker, but also for the entire stock market.

Wall Street traders think next week's earnings report from Nvidia is likely to give the chip stock another boost, according to one interpretation of options market pricing. A Piper Sandler research note on Thursday from Benson Durham and Melissa Turner said short-term options on Nvidia look expensive, but that high cost is tilted toward options that serve as bets the stock will rise. "What's noteworthy is that near-term upside is the dearest, not the downside.

mountain Nvidia's rally has been a key driver of this bull market. The market optimism about Nvidia extends beyond the immediate period after the earnings report, according to Piper Sandler. "We focused on shorter-dated options, largely on account of next week's release. However, the rest of the surface isn't necessarily priced fairly, either. E.g.

 

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