Big earnings report night! The options market is pricing in a potential $300 billion fluctuation in NVIDIA's market value

NVIDIA will announce its earnings report after the U.S. stock market closes on Wednesday, attracting market attention. According to options analysis firm ORATS, data from the U.S. options market indicates that options traders expect an 8.5% volatility in NVIDIA's stock price following the quarterly results, which could be either positive or negative, meaning its market value could fluctuate by nearly $300 billion.The 8.5% volatility aligns with the percentage of stock price fluctuations following NVIDIA's earnings reports over the past 12 quarters. It is noteworthy that as NVIDIA's market value grows to approximately $3.5 trillion, the expected post-earnings market value fluctuation approaches the largest ever recorded.If we estimate NVIDIA's $300 billion market value fluctuation, this means that the fluctuation alone exceeds the total market value of about 95% of the stocks in the S&P 500 index.Matt Amberson, founder of ORATS, pointed out that NVIDIA's stock price fluctuations after earnings reports are often below market expectations. If the stock price volatility exceeds market expectations, the price trend is usually upward. For example, in the past 12 quarterly earnings reports, there were five instances where the stock price volatility exceeded market expectations, and in each of those five cases, the stock price rose.Strategists at Susquehanna Financial Group noted that traders believe the probability of a significant upward price movement is slightly higher than that of a downward movement.NVIDIA is at the core of the generative artificial intelligence boom, and its performance is a key factor in determining market trends. Industry insiders generally believe that the market will infer based on NVIDIA's statements regarding the entire AI industry.NVIDIA's stock price rose after the results of the U.S. election were announced, reaching an all-time high; however, the stock price performance has stagnated over the past week leading up to this Monday, and on Tuesday, ahead of the earnings report, NVIDIA surged again.Over the past eight quarters, NVIDIA's revenue has exceeded Wall Street's continuously optimistic expectations. However, as analysts anticipate a slowdown in its growth rate, how the company overcomes delays and supply chain issues may be crucial factors affecting its stock price