Traders expect Nvidia to swing 5.6% after earnings, with bullish calls outpacing puts

Traders expect Nvidia shares to swing 5.6% after its second-quarter earnings report, the largest anticipated move in 18 months and more than double the median post-earnings swing of the past four quarters. Bullish calls are trading notably more expensive than puts, indicating traders are preparing for a rally. Options data shows the highest concentration of trading at the $220 strike, with 226,000 call contracts open versus under 80,000 puts. A rally past that level could trigger momentum-chasing by market makers, potentially exaggerating a move toward $230, according to SpotGamma's Brent Kochuba. Nvidia shares have fallen after six of the last eight earnings reports despite robust beats, noted Charlie Moon of Prosper Trading Academy. Call options betting on a one standard-deviation move are in the 70th percentile of the past year, while equivalent puts are in the bottom 40th percentile.