And the real losers from Nvidia’s earnings report are...
If you were punting on Nvidia using short-term options heading into this earnings report, it doesn’t really matter whether you were bearish or bullish: so far, you may be poised to lose either way.
The option-implied expectation was for the chip designer powering the AI boom to move 9.8% on earnings. Up or down. About 30 minutes after its results dropped (which looked solid on the surface, but hey, not good enough, it seems), the stock has been up as much as 2.3% and down as much as 8.4%.
The top four single-stock options that traded today were linked to Nvidia.
Shares are currently down about 4% as of 5:00pm ET. If this result were to hold through tomorrow’s session, this would be its worst reaction to a quarterly report since the company unofficially kicked off the AI boom in May 2023.
Even if you owned puts, which would typically benefit from the stock going down, those may not be going down by enough, fast enough for those options to perform well.
