Bank of America offers a market hedge in case Nvidia earnings disappoint this week

  • 📰 CNBC
  • ⏱ Reading Time:
  • 24 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 72%

Investment Strategy Notícia

Markets,CBOE Volatility Index,SPDR S&P 500 ETF Trust

Nvidia's earnings report on Wednesday could spark a slide for a stock market that is still fragile from the sell-off earlier this month, according to BofA.

The market appears to be too confident in Nvidia heading into its earnings report this week, and that could result in a wider market sell-off, according to Bank of America. Derivatives strategy analyst Gonzalo Asis said in a Sunday note to clients that investors should consider using a defensive options trade to guard against a disappointing earnings report that triggers a sell-off. "NVDA results have been a key driver of equity indices ...

The put spread trade identified by Asis would involve buying the $555-strike put, and selling the $545-strike put. By owning the $555 strike put, the trade is effectively a bet that SPY will fall below that level. Selling the $545 put helps to lower the up-front cost of the trade, but it does limit the total upside if the the market has a major sell-off that results in both options being exercised. SPY 5D mountain The SPY closed at about $562 per share on Friday.

Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:

 /  🏆 12. in PT
 

Obrigado pelo seu comentário. Seu comentário será publicado após ser revisado.

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Stocks like Nvidia are table-pounding buys, Bank of America saysStocks like Nvidia still have more room to run this summer, according to Bank of America.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Buy the dip in tech stocks including Nvidia amid market uncertainty, Bank of America saysThe Wall Street investment bank said investors should buy these top tech stocks right now.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »