Option Chain Before Earnings - $NVDA huge CALL skew
Uppdaterad
This week, keep an eye on 
NVDA , which will release its quarterly earnings on Wednesday.
Here are this week’s earnings releases implemented by the TanukiTrade Options Overlay indicator for Tradingview:
The Options Overlay indicates that NVDA's call skew is above 55% at 54DTE, meaning that CALL options are priced 55% higher than PUT options for the binary expected move distance.
This suggests that the market is pricing in a strong upward move.
[ NVDA Price Targets ]
The yellow curve represents the binary expected move, while the blue curve shows the 16-delta OTM options. The green rectangle highlights the area where you can potentially profit from the butterfly trade if the earnings report meets bullish market expectations.
Upward price levels:
Downward price levels:
If you agree with the market’s bullish sentiment, one of the best R:R trades might be a directional NVDA call butterfly. You can buy it for $109 with the nearest Friday expiration, with a maximum (theoretical) profit of nearly $900. It’s worth executing this trade before the earnings announcement. Note that the green dashed line is theoretical; while it's not a traditional trendline according to classic TA, the long-term upward trend is still quite clear
NVDA , which will release its quarterly earnings on Wednesday.Here are this week’s earnings releases implemented by the TanukiTrade Options Overlay indicator for Tradingview:
- 08/28 Wednesday after market close: NVDA , CRWD , CRM
- 08/29 Thursday after market close: MRVL
The Options Overlay indicates that NVDA's call skew is above 55% at 54DTE, meaning that CALL options are priced 55% higher than PUT options for the binary expected move distance.
This suggests that the market is pricing in a strong upward move.
[ NVDA Price Targets ]
The yellow curve represents the binary expected move, while the blue curve shows the 16-delta OTM options. The green rectangle highlights the area where you can potentially profit from the butterfly trade if the earnings report meets bullish market expectations.
Upward price levels:
- 7/8 - 138
- 8/8 - 150
Downward price levels:
- 6/8 - 125
- 5/8 - 112
If you agree with the market’s bullish sentiment, one of the best R:R trades might be a directional NVDA call butterfly. You can buy it for $109 with the nearest Friday expiration, with a maximum (theoretical) profit of nearly $900. It’s worth executing this trade before the earnings announcement. Note that the green dashed line is theoretical; while it's not a traditional trendline according to classic TA, the long-term upward trend is still quite clear
- Expiry: Aug 30
- Legs: 1x140C -2x150C + 1x160C
- Net debit: ~$100
- Max profit: $890
Kommentera
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Kommentera
the watched call butterfly is now just 0.9db, so I like to wait right before earnings. Handel aktiv
NVDA trade opened.... finger crossing 😄 I finally bought it for 0.95db
Upper break-even: I am good to almost 170, or if we fall, I have a QQQ bearish BWB position open in negative delta, for credit.....
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REAL option metrics for over 160+ liquid US symbols:
✔ IVRank ✔ Exp.move ✔ Delta curves ✔ Volatility Skew
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🌐 TanukiTrade.com 🌐
REAL option metrics for over 160+ liquid US symbols:
✔ IVRank ✔ Exp.move ✔ Delta curves ✔ Volatility Skew
⏩ FREE Newsletter: tanukitrade.substack.com
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