Options Traders Still Love This Chip Stock

The chip name reports earnings on Wednesday, May 22

Deputy Editor
May 16, 2024 at 1:34 PM
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Ahead of its earnings report after the close on Wednesday, May 22, Nvidia Corp (NASDAQ:NVDA) stock once again took second place on Schaeffer's Senior Quantitative Analyst Rocky White's list of names that attracted the most options volume during the last two weeks. The equity saw 7,764,113 calls and 4,943,247 puts traded in the last 10 trading days, with the weekly 5/10 900-strike call standing out as the most active contract.

MAO Chart 162024

Shares of the semiconductor firm have a positive history of post-earnings reactions over the past two years. Specifically, six of these eight next-day sessions were higher, including a 16.4% pop in February. Options traders are pricing in an 11.7% post-earnings swing for the equity this time, which is much larger than the 8.5% move it averaged after its last eight reports, regardless of direction. 

Considering the chip stock sports a 91.5% year-to-date gain, it's no surprise that bulls are outpacing bears. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 1.47 ranks higher than 71% of readings from the past 12 months.

Last seen 0.2% higher at to trade at $948.17, NVDA is attempting to surpass a March 8, record high of $974. The stock yesterday broke above short-term resistance at the $930 level, and sports a massive 214.5% lead.

 

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