US equities (^GSPC, ^DJI, ^IXIC) could be in for a stir as Wall Street gears up for Nvidia's (NVDA) latest earnings due out this Wednesday, August 28. Options trading betting on the stock is substantial as, according to data from BayCrest, options could move the stock 9.9% in either direction with nearly $300 billion on the line for the chipmaker's market cap.
BayCrest equity derivatives managing director David Boole joins Catalysts to give insight into the options market's attentiveness to Nvidia's upcoming second quarter results and the chip stocks relationship with broader market moves.
"There's a lot of demand for Nvidia chips, but is this the reason to go out and buy every other stock in the S&P 500 (^GSPC)? That was last quarter, we'll see what happens this quarter. The options markets in the S&P are expecting that what's good for Nvidia will be good for the stock market. And they're expecting a 1.2% move in the S&P 500 on Thursday...," Boole says on options expectations around Nvidia's momentum.
"That's more than we were expecting... so the options market is kind of not expecting that we'll have this correlation break, but there is precedent for it happening for and it was last quarter."
Link:https://ca.finance.yahoo.com/video/nvidia-earnings-options-market-anticipating-153949761.html