Investors are eagerly anticipating Nvidia’s first-quarter earnings report, with the options market displaying relatively calm behavior according to Interactive Brokers’ chief strategist. Nvidia, with a market capitalization of over $2 billion, is expected to report first-quarter earnings per share of $5.53 on revenues of $24.6 billion, with analysts predicting a significant increase in data center revenue. The options price for Nvidia shows a unique bias, indicating confidence in the chip giant’s financial performance.
Interactive Brokers’ chief strategist, Steve Sosnick, noted that the options market for Nvidia looks different than before the company’s previous earnings report, with a more stable outlook and decreased implied volatility. Nvidia’s shares rose about 16% after the last earnings report, leading to expectations of continued growth and lower post-earnings volatility. The options market was pricing in an 8% move in either direction after the upcoming earnings report.
Investors interested in tracking the technology sector can turn to ETFs such as QQQ, XLK, IYW, SOXL, VGT, AIQ, and PSQ. These ETFs offer exposure to the tech industry and can provide diversification within the sector. Overall, the options market for Nvidia reflects confidence in the company’s performance leading up to the earnings report.
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