Nvidia earnings could spark $200 billion swing in shares, options show

By Jerry  Published On May 21, 2024
NEW YORK, May 21 (Reuters) – Traders are pricing in a big move for Nvidia’s shares after the chipmaker reports earnings on Wednesday, though expectations for volatility are more muted than in the past, U.S. options markets show.
Nvidia’s options are primed for an 8.7% swing in either direction by Friday, according to data from options analytics firm Trade Alert. That would translate to a market cap swing of $200 billion – larger than the market capitalization for about 90% of S&P 500 companies.
While massive by most measures, that implied move would fall far short of the 16.4% jump Nvidia’s shares notched after the company’s most recent quarterly earnings report. It is also less aggressive than the average 12% move traders had priced for the last eight quarters.
“Volatility and expectations had been a fair amount higher the last time around,” said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group.
Source: REUTER

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