Nvidia Earnings Are Out--How Options Traders Are Reacting
Nvidia's earnings report showed strong performance but fell short of Wall Street expectations, causing a 0.8% drop in its stock price to $221.69. Options traders are showing subdued activity with 32 million calls and 13 million puts exchanged recently, while the weekly 5/22 230-strike call is the most active contract today.
Nvidia Corp (NASDAQ:NVDA) released its earnings report, delivering solid results that still disappointed Wall Street investors. The stock price dipped 0.8% to $221.69, marking a fourth consecutive loss despite the company's strong financial performance. Nvidia has consistently ranked among the top S&P 500 stocks in options trading volume over the past two years, according to Schaeffer's Senior Quantitative Analyst Rocky White. During the latest two-week period, traders exchanged over 32 million call options and roughly 13 million put options. The July 220 call was the most traded contract, while new positions were opened at the weekly 5/22 255-strike call ahead of earnings. Today, options volume remains subdued at 1.3 times the average intraday amount, with the weekly 5/22 230-strike call leading activity. Technical analysis suggests Nvidia may be forming a bullish flag pattern, reflecting its recent sideways trading. Despite the stock's 18.6% year-to-date gain, it remains below its May 14 all-time high of $236.54. The company’s market dominance and investor interest continue to drive significant options trading, though current sentiment appears cautious following the earnings release.
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