NVDA Earnings Preview For The Holiday Shortened Week

Sunday Preview For Novmber 19, 2023

The economic and earnings calendars are both quiet this coming week as Thanksgiving falls on a Thursday this year. I know it always does, but I have a friend who once asked, “What day is Thanksgiving this year”, that was the moment I decided I needed new friends.

The highlight comes on Tuesday after the market close when the best performing stock in the S&P 500, Nvidia Corporation (NVDA), releases their second quarter 2024 earnings announcement. The table below summarizes the last twelve earnings announcment price reactions and option pricing.

The average price change of +/-6.54% does not do justice to what NVDA shares have done in the past. The figure below shows last quarter’s +0.10% move which followed a gain of over 24% in reaction to earnings.

Finally, a quick look at straddle pricing shows something of interest. Note the most expensive straddle below was the most recent earnings announcement. This followed an outlier move for Q124. If traders remain short sighted, options may just be cheap going into Tuesday’s announcement.