US equities (^GSPC, ^DJI, ^IXIC) could be in for a stir as Wall Street gears up for Nvidia's (NVDA) latest earnings due out this Wednesday, August 28. Options trading betting on the stock is substantial as, according to data from BayCrest, options could move the stock 9.9% in either direction with nearly $300 billion on the line for the chipmaker's market cap.

BayCrest equity derivatives managing director David Boole joins Catalysts to give insight into the options market's attentiveness to Nvidia's upcoming second quarter results and the chip stocks relationship with broader market moves.

"There's a lot of demand for Nvidia chips, but is this the reason to go out and buy every other stock in the S&P 500 (^GSPC)? That was last quarter, we'll see what happens this quarter. The options markets in the S&P are expecting that what's good for Nvidia will be good for the stock market. And they're expecting a 1.2% move in the S&P 500 on Thursday...," Boole says on options expectations around Nvidia's momentum.

"That's more than we were expecting... so the options market is kind of not expecting that we'll have this correlation break, but there is precedent for it happening for and it was last quarter."

Follow along with Yahoo Finance's latest coverage of Nvidia ahead of its earnings this week:
Why Nvidia's stock rally is not driving broader market gains
Nvidia earnings highlight a busy end of August: What to know this week
Nvidia gets ready to take over the stock market (again)
Nvidia still the best AI chip play right now: Analyst
4 AI terms Nvidia investors should know
Nvidia earnings 'absolutely key to the AI infrastructure trade'

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino