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Nvidia (NVDA) will be reporting fourth quarter earnings next week on Wednesday, February 26. To discuss what options markets are predicting ahead of the tech giant's results, BayCrest managing director of equity derivatives David Boole joins Morning Brief.
According to Boole, options markets anticipate approximately 7% stock price volatility following the announcement — a moderate projection compared to recent quarters. This suggests that Nvidia's quarterly results report, while still significant, matters "a little bit less than it used to," Boole explains.
Though a 7% movement would translate to roughly $240 billion in market capitalization fluctuation, Boole points out this is only 2.5 times Nvidia's typical daily volatility.
"It's a big event, but I'm starting to think that it might not be a one-day surge like it used to," he tells Yahoo Finance, while acknowledging the results will likely "set the stage" for the stock's trajectory in the following month.
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This post was written by Angel Smith