Nvidia options show traders positioned for outsized share move after earnings

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By Saqib Iqbal Ahmed NEW YORK (Reuters) - Traders in the U.S. equity options market are expecting a larger-than-usual swing in Nvidia's shares ...

Missing dog scam red flags | SaltWireNEW YORK - Traders in the U.S. equity options market are expecting a larger-than-usual swing in Nvidia's shares following the chipmaker's quarterly results after the close on Wednesday, options market data showed.

Nvidia options imply a nearly 11% swing for the shares, in either direction, by Friday, according to Trade Alert data. A move of that magnitude would be larger than the 8.6% average swing on the day after the chipmaker's results over the last eight quarters, but still well below the 24.4% jump after the last earnings report.

The stock has gained about 11% in the last seven sessions, taking its year-to-date gains to about 210%, and has drawn options bets on further gains. For contracts expiring this week, Nvidia call options that would make money if the stock climbed more than 9% by Friday to above $500, were the largest block of open options, with some 19,000 contracts open."A lot of good news is baked into this," Steve Sosnick, chief strategist at Interactive Brokers, said.

 

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