Options Market Says Nvidia Could Move This Much Ahead Of Earnings Release

Nvidia Corporation’s NVDA is scheduled to report its fiscal third-quarter earnings after the closing bell on Wednesday.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said there were twice as many calls than puts. The options market is implying a move of around $17 higher or lower by the end of week.

This represents a move of about 5.8% of the stock price, which is higher than the average of around 4.1% “over comparable periods of time over the last eight quarters,” Khouw said. However, in the last quarter, the stock “did move nearly 7% in the day before earnings until a couple of days afterwards,” he added.

The most active were the November 300 calls. There were buyers of 16,700 calls at an average price of $9.05. Traders are betting that the stock will finish the week higher by 2%, Khouw mentioned.

Meanwhile, UK’s competition watchdog has ordered a probe into bid of around $50 billion to acquire chip designer Arm from Japan’s SoftBank Group Corp.