“In the case of Nvidia NVDA, 3.01%, the market is pricing in a roughly 11% move in response to the coming earnings, according to Garrett DeSimone, the head of quantitative research at OptionMetrics. He said the average move for Nvidia is between 7% and 8%, ‘so this is definitely outside the norm.’
The implied move translates to a stock price of about $507 on the upper end and $406 on the lower end, DeSimone told MarketWatch. Someone who employed the straddle would make money if Nvidia’s stock finishes Thursday’s session above the upper point or below the lower point.”
For more insight from OptionMetrics’ Head Quant Garrett DeSimone, read the full MarketWatch article, “Nvidia stock options traders are bracing for larger move than usual after earnings,” below.