Nvidia Earnings Released: Options Traders Respond

Nvidia reported earnings that exceeded expectations, prompting significant movement in its share price and elevated options volume. Options traders are positioning for continued volatility, with a surge in both call and put activity indicating divergent views on whether the rally can sustain, reflecting a classic post-earnings uncertainty trade. The reaction underscores a short-term risk-reversal skew, where implied volatility spikes are pricing in potential downside protection and momentum chasing in equal measure. This dynamic is most directly impacting NVDA’s near-term options chain and influencing broader semiconductor ETFs like SOXX due to sector correlation. Traders will watch open interest shifts in the next 24 hours, particularly at the $950 and $1,000 strike levels for Friday’s weekly options, as a signal of where institutional gamma exposure is accumulating.

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