Markets
markets
Luke Kawa

JPMorgan recommends bullish options bet on Nvidia ahead of earnings

Nvidia, the most valuable stock in the world, has lagged its semiconductor peers over the past three months in the run-up to its fiscal 2026 third-quarter results, due out after Wednesday’s close.

JPMorgan reckons an earnings beat, as well as signs that the company and its suppliers are well-positioned to meet the ever-growing demand for its AI offerings, would be sufficient catalysts to unlock a catch-up trade that sends shares soaring back towards all-time highs.

“We favor owning call spreads as a strong beat-and-raise from NVDA and positive commentary around supply could clear recent sector underperformance and could propel NVDA above its average historical move,” writes Bram Kaplan, head of America equity derivatives strategy at JPM.

The recommendation:

  • Buy calls at a strike price of $197.50 for this Friday’s expiry; and

  • Sell the same amount of calls at a strike price of $207.50 for the same expiry.

The options-implied move is about +/- 6.4%. To break even on this position (by the time of expiry, based on current prices), you’d need to see shares up above $199.30.

The chip designer has traded between ~$180 and $210 since the end of September. So, the upper strike on this call spread caps the upside a little below the stock’s October 29 intraday peak of $212.19.

The max gain would be roughly 550% of the premium paid; the max loss, of course, would be 100%.

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markets
Hyunsoo Rim & David Crowther

Bitcoin’s having its worst month since 2022 as the sell-off continues, with BTC dipping below $90,000

Bitcoin slid below $90,000 on Monday night for the first time since April, extending a month-long rout that has now erased all of its 2025 gains. The world’s largest cryptocurrency briefly hit $89,350, its lowest level since February, before rebounding slightly to hover near $91,000. The drop comes just six weeks after prices hit a record $126,250.

The slide comes as risk appetite evaporates across markets, with speculative tech stocks tumbling, hedge funds de-risking — while some investors use bitcoin's losses for year-end tax-loss harvesting.

As a result, bitcoin is now suffering its worst one-month stretch since the deep 2022 selloff, and its worst Q4 since 2018 — despite November typically being its strongest month. With fear gauges hitting "extreme" levels, some traders are now positioning for a potential slide toward $86,000-$88,000.

Tasha Matsumoto
15h
Tech and finance lead sell-off as traders brace themselves for Nvidia earnings and the September jobs report

While speculative assets were hardest hit, all sector ETFs were trading lower except utilities.

NFC Playoffs: Chicago Bears Walter Payton (34) upset, sitting on sidelines bench after losing game vs Washington Redskins
Stock market risk

Goldman: “We see three main areas of risk” for the market

If fresh data on the state of the US economy starts to confirm slowdown fears, buckle up.

Matt Phillips16h
Luke Kawa
19h
Assets tied to the riskiest parts of the market and the economy are getting dumped in unison

If you’re looking for things to worry about, this combination of risk appetite souring on thematic, volatile stocks at the same time as companies that are in the business of giving money to less creditworthy companies should probably be near the top of the list.

Water Squeezed From Earth
markets
Max Knoblauch

Lucid continues its autumn rout, hitting a fresh all-time low following a price target cut by Stifel

It’s been a rough 48 days for luxury EV maker Lucid, which fell to a fresh all-time low on Monday following a price target cut by analysts at Stifel.

Stifel lowered its Lucid price target to $17, from $21, with analyst Stephen Gengaro writing that the company will likely require additional capital over the next few years. According to Stifel’s note, published Monday, Lucid’s production is improving but it’s still in the “prove-it-to-me” stage, and vehicles that could elevate sales volumes are “likely two years away.”

Last week, Lucid announced that it plans to raise $875 million through a private offering of convertible senior notes due in 2031. The company lowered its production outlook and reported negative free cash flow of $955 million in its third quarter.

Since the end of the EV tax credit on September 30 — which Lucid’s pricey vehicles only qualified for through leasing loopholes — its shares are down more than 40%. Zooming out, Lucid’s stock has shed 98% of its value from its 2021 highs amid peak electric vehicle optimism.

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