Trading in options on NVidia (NVDA) is brisk and implied volatility is moving to 52-week highs ahead of earnings. The chipmaker is due to report after the closing bell. Shares are up 40 cents to $14.63 and have rallied 14.3 percent in three weeks leading up to the report. Meanhwile, 98,000 calls and 24,000 puts traded in the name. The flow has been mostly in smaller lots. The top trade is 1000 Sep 16 calls for 37 cents when the market was 36 to 37 cents. Aug 16s are the most actives. 23,990 traded. Aug 15s, Weekly 14, and Weekly 16 are busy as well. 30-day ATM vols have moved up 5.5 percent to 57 and the Weekly at-the-money straddle trades at 10 percent of spot. NVDA hasn’t been a big earnings mover later. The stock scored gains following the past three earnings releases for an average daily advance of 3.9 percent.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.