Nvidia Corporation NVDA is scheduled to report quarterly earnings on Wednesday after the closing bell. The Street expectations are for earnings of $1.30 per share on a slowdown in revenue growth.
On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that there were “big trades in both directions” for the stock on Tuesday. The market is implying a move of over 10%, significantly higher than the average of 4% over the past eight quarters, he added.
Check out tech stocks making big moves in the premarket.
There was a buyer of 1,500 of the June 150/130 put spreads at $5.05 per contract on average, Khouw mentioned. This trader sees shares of Nvidia falling by as much as 20% by June expiration, he added.
Also Read: Nvidia Announces New Liquid-Cooled GPUs: How It Will Double Data Center Computing Power
There was also a buyer of 1,000 of the June 3 180 calls at $3.00 per contract on average, Khouw mentioned. This trader sees shares of Nvidia rising by at least 13% by June 3, he added.
NVDA Price Action: Shares of Nvidia declined by nearly 5% to settle at $161.54 on Tuesday, and were trading down 1.26% at $159.51 during premarket on Wednesday, according to Benzinga Pro.
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