Nvidia options show traders positioned for outsized share move after earnings

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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.

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.Reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Cynthia Osterman

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