Investors on edge as markets remain stagnant, awaiting Nvidia earnings report
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Markets anticipate surge post-earnings
The market is showing confidence in Nvidia as implied volatility spikes ahead of earnings. With call gamma overwhelming the stock, there is a strong demand for upside potential. The low spread between puts and calls signals the market’s bullish sentiment towards the stock.
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Analysts warn of potential volatility crush post-earnings, as high IV levels are expected to decrease. The imbalance between call and put options could lead to a shift in stock price. Historically, events like earnings reports have triggered similar market movements, with IV drops causing puts to lose value.
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While a strong earnings report could propel the stock higher, failure to meet expectations may result in a downturn. Investors should brace for potential market fluctuations following Nvidia’s earnings release, as the outcome could impact stock performance significantly.