Traders in the US equity options market are preparing for a significant fluctuation in Nvidia’s shares following the imminent earnings report of the leading artificial intelligence chipmaker.
Experts suggest that Nvidia’s earnings report, slated for release on February 21, could instigate a notable shift in the stock’s value, with projections indicating a potential swing of approximately 11 percent in either direction.
This forecast emerges as the most substantial prediction made by options traders in the past three years, indicating heightened volatility on the horizon. Matt Amberson, the founder of options analytics service ORATS, highlights the substantial nature of the projected swing in Nvidia’s shares, particularly considering the company’s market capitalization of $1.8 trillion.
A movement of this scale could lead to a market value adjustment of roughly $200 billion, surpassing the market capitalization of prominent entities like Intel Corp and surpassing that of approximately 90 percent of S&P 500 constituents.
The anticipation surrounding Nvidia’s earnings is evident in the activity observed in the options market, with over 750,000 Nvidia options traded by early Thursday afternoon. This makes Nvidia one of the most actively traded single stock names in the options market.
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