economy
Nvidia bulls mount uphill battle into earnings
Call volume outpaced puts by more than double on Monday, though more calls were exchanged at the bid or below, meaning likely sold.
TL;DR
- Nvidia options traders are on pace for another rough session as the stock drops.
- Popular short-term Nvidia call contracts are expiring worthless.
- Despite losses, Nvidia options trading volume is high, with a significant portion tied to calls.
- Traders expect a 6.25% swing based on implied volatility around earnings, larger than the average realized move.
- Nvidia's stock has historically dropped after earnings reports.