Posted 2/20/2024, 6:26:00 PM
Nvidia Earnings: Options Traders Bet on 11% Stock Move, Profit Opportunity With Limited Downside Risk
- Nvidia stock has an expected 11.3% post-earnings move based on options pricing
- Over the last 6 earnings, Nvidia stayed above the expected downside range
- The proposed bull put spread sells the $605 put for $8.75 and buys the $600 put for $7.65
- The spread risks $390 to make a maximum profit of $110 if Nvidia stays above $605
- The break-even point is $603.90; the return is 28% over a few days but risks losing the full amount