Nvidia Straddle Implied Move of 6.5% as Traders Buy June 245/260 Spreads
Nvidia’s weekly earnings straddle is priced at 6.5%, under its ten-quarter average of 8% yet above the typical 5.6% one-day post-results swing. Traders bought 25,000 June 245/260 call spreads and heavy May 22 230 call volume signals rising upside bets ahead of results.
1. Earnings Straddle Pricing
Nvidia’s weekly earnings straddle is implied at 6.5%, below the 8% average from the past ten quarterly releases yet still above the 5.6% average one-day swing seen post-results. This pricing suggests moderate expectations for stock movement around the upcoming report.
2. Large Call Spread Position
Options data show a trader acquired 25,000 June 245/260 call spreads, indicating significant bullish sentiment. Concurrently, the May 22 weekly 230 calls led volume, reinforcing demand for upside exposure.
3. Volatility Outlook
Implied volatility remains elevated compared to historical post-earnings levels, prompting some market watchers to anticipate a volatility reset after the report. Easing implied volatility could create trading opportunities in the weeks following the release.