Market Anticipates Nvidia's Stock Price Movement with $500 Billion in Stock-Options Bets

Nvidia's earnings result is likely to be the most anticipated by the market this week

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Nov 18, 2024
Summary
  • Investors show exceptional interest in Nvidia ahead of its November 20 earnings release, with options premiums soaring, signaling high expectations despite mixed past performance.
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The market is excited to Nvidia (NVDA, Financial)'s earnings that will be released on Wednesday, November 20, 2024. CBOE Global Markets noticed that the investors already speculated on the future price movement of Nvidia.

The Wall Street Journal cited CBOE data and saw options premium for Nvidia is exceptionally high, reaching $500 billion bets, far beyond that on Tesla, Meta, Apple, AMD and many more.

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Taken From: The Wall Street Journal

Stock options are buying and selling contracts that give the holders the right, not the obligation, to buy (call option) or to sell (put option) a stock at a predetermined price before the expiration date. While the premium is what the buyer pays to gain the right to exercise the option. High number of premium bets signaling exceptionally high interest on the Nvidia's stock price movement.

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In the past five quarters, while earning per share has surpassed market consensus in all cases, the changes in price per share have been varied. Not all earnings beat resulting an increase in price, as two times the stock went down instead.

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