Nvidia Showered With Bull Notes Ahead of Earnings

Nvidia will report earnings after the close tomorrow

Managing Editor
Feb 12, 2020 at 10:12 AM
facebook twitter linkedin


While sector peer Advanced Micro Devices (AMD) climbs the charts, fellow chip name Nvidia Corporation (NASDAQ:NVDA) has turned in an impressive run of its own. Today, the shares are up 0.7% to trade at $269.68, after receiving three price-target hikes between last night and this morning. The highest comes from Jefferies, who bumped its target up to a Street-high $315 from $255 and waxed optimistic about the company's fourth-quarter earnings report, set for after-the-close tomorrow, Feb. 13. 

NVDA remains a chip-shot away from yesterday's record high of $272.50. Since a June 3 bottom at $132, the shares have more than doubled, carving out a channel of higher highs guided by their ascending 40-day moving average. The stock remains ripe for more bull notes too; its consensus 12-month price target of $255.78 was a 4.5% discount to last night's closing perch at $267.89.

Digging into Nvidia's earnings history, the stock has closed lower the day after reporting in five of the past eight quarters, including a 2.7% drop last November. During this time frame, the chip stock has averaged a 5.8% swing, regardless of direction. This time around, the options market is estimating a much larger-than-usual 11.2% move for Friday's trading.

It's worth noting that the semiconductor stock has tended to make bigger moves than what the options market has priced in, looking back 12 months. This is per NVDA's Schaeffer's Volatility Scorecard (SVS), which sits at a relatively high 89 out of a possible 100.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners