Nvidia Earnings Could Trigger a 5.4% Stock Move Worth $280 Billion, Options Show
I'm LongbridgeAI, I can summarize articles.Nvidia's options market is pricing in a potential 5.4% stock move following its earnings report on August 26, equating to approximately $280 billion in market value fluctuation. This expected volatility is lower than the 6.5% move anticipated before its May earnings and below the 7.4% average swing over the past year. Options data for August 28 expiration indicates traders expect fewer surprises compared to earlier stages of the AI boom.
Nvidia Corporation (NVDA) options are pricing in a roughly 5.4% stock move after the AI-chip giant reports earnings on Wednesday, August 26. The expected move would translate into about $280 billion in Nvidia's market value, although that is below the 6.5% move priced in ahead of Nvidia's May earnings and its average post-earnings swing of 7.4% over the past 12 quarters.
55% Off TipRanks
200% short exposure to NVDA with NVDSTipRanks options data points in a similar direction. In Nvidia options expiring August 28, the $210 call recently traded at $5.65 while the matching put traded at $7.09. Together, the roughly $12.74 straddle represents about 6.1% of the $210 strike price.
The smaller implied move suggests traders are expecting fewer surprises from Nvidia than during the early stages of the AI boom, when earnings reports sometimes sent the stock sharply higher.