Recent movements in macro assets on Nvidia earnings demonstrate the major role of the AI theme and the chipmaker as a key market bellwether, Goldman Sachs said in a Wednesday report.) is set to report its earnings for the second quarter of fiscal 2025 on Wednesday and investor attention is notably growing, Goldman notes, as evidenced by an increase in options trading volume over the past week.Over the past month, the put-call skew for Nvidia has decreased, signaling a shift in sentiment.
Notably, in two of the last four earnings reports, the realized SPX movements exceeded the implied moves suggested by straddles. The S&P 500 2-day straddles are currently priced at 1.0%, which is below the realized average move of +/-1.2% over the last four quarters. In their note, strategists highlighted the top 20 exchange-traded funds that have historically seen large movements in response to Nvidia's earnings.
The biggest average absolute moves on past Nvidia earnings were seen in SMH , followed by SOXX , ARKK , and KWEB .Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.