Nvidia (NVDA) will release its second-quarter results on Wednesday, August 28. Due to the company’s influence on the technology-heavy market indexes (^GSPC, ^IXIC), many on Wall Street are particularly keen on the chipmaker’s results.
David Boole, managing director of equity derivatives at BayCrest, talks to Catalysts about market expectations for Nvidia’s earnings and the stock’s correlation with the overall market. Data from BayCrest found that options trading on Nvidia could move the chipmaker’s stock 9.9% in either direction, with nearly $300 billion at stake for the chipmaker’s market cap.
“Nvidia is … the most options-volume stock in the market. There’s a lot of excitement, people are trading Nvidia like it’s a proxy for the S&P (500),” Boole tells Yahoo Finance.
Boole offers trades he agrees with: “The trades I like are essentially in line with this view that you can sell. I like to sell a $115 put that expires this Friday and a $140 call that expires this Friday. That’s about 11% downside and 8% upside if the stock goes up. That’s a wide range. That’s essentially what the options market expects.”
Follow Yahoo Finance’s latest coverage on Nvidia ahead of this week’s earnings release:
Why Nvidia’s share price rise is not leading to broader market gains
Nvidia results highlight busy end of August: What to know this week
Nvidia is preparing to take over the stock market (again)
Nvidia earnings: What the options market expects
Nvidia is still the best AI chip provider: Analyst
4 AI terms Nvidia investors should know
Nvidia profits “absolutely crucial for trading in AI infrastructure”
Click here to watch the full episode of Catalysts for more expert insights and the latest on market developments.
This article was written by Nicolas Jacobino
