Traders Look to Cash in on Nvidia’s Explosive Swings

Aug 24, 2023 thejournalbiz

Options traders were betting on a big swing in Nvidia shares after its earnings Wednesday.

Their wagers are indeed looking prescient.

Prices in the options market indicated a roughly 11% swing in the shares through Friday.

Tweet on NVIDIA stock

Traders Look to Cash in on Nvidia's Explosive Swings!!@nvidia shares are already up around 6.8% at $503.05 this morning ahead of the opening bell.#Nvidia #ai #chips pic.twitter.com/HX8D7Z0HTr

— The_Journalbiz (@the_journalbiz) August 24, 2023

Bloomberg Chart

Nvidia shares are already up around 6.8% at $503.05 this morning ahead of the opening bell.

Some of the most popular trades on Wednesday—just hours before Nvidia’s results were revealed—were call options that would pay out if the shares soared to $500 or even $600.

Of course, a lot could change by the end of today’s trading session. For now, traders who picked up those contracts are probably pretty happy about the big post-earnings move.