StockNews.AI
NVDA
Market Watch
174 days

Opinion: Nvidia options traders are vastly overestimating how earnings will move the stock. Just look at these charts. - MarketWatch

1. Nvidia earnings report is set for February 26 after trading hours. 2. Options leading into earnings are seen as expensive across recent quarters. 3. Pre-earnings straddles have historically been overpriced against actual move. 4. Implied volatility has increased slightly, indicating market uncertainty. 5. Current straddle pricing suggests limited upside potential for options trading.

7m saved
Insight
Article

FAQ

Why Neutral?

Options prices are historically high but not indicative of significant movement. Past earnings have shown overpriced straddle options without corresponding gains.

How important is it?

Earnings impact potential is critical for NVDA; however, current market signals suggest caution. Historical patterns indicate options traders often misprice straddles prior to announcements.

Why Short Term?

Immediate price reactions typically occur post-earnings, with volatility settling thereafter. Short-term traders may be affected, but long-term buyers less so.

Related Companies

Related News