Nvidia (NASDAQ: NVDA) will report earnings after the market closes today, and options traders are preparing for another volatile session.
Bloomberg data shows that traders purchased about 13,000 December $205/$235 call spreads. This strategy benefits if Nvidia’s stock rises but limits gains above $235. It signals a measured bullish view, suggesting traders expect upside without needing a dramatic rally.
Traders appear less willing to chase extreme upside bets. Instead, they are focusing on moderate bullish positions ahead of the results.
Implied volatility, which reflects expected price movement in the options market, has eased slightly. Current pricing suggests Nvidia shares could move about 6.9% following the earnings release, based on levels from November 18.
Short-term options remain the most active. Roughly half of all Nvidia option volume is concentrated in contracts expiring on November 21. The $180 strike is the most crowded level, with more than 226,000 combined calls and puts, showing strong interest near that price.
The most heavily traded contract today is the November 21 $200 call, with around 88,000 contracts traded by midday. This activity indicates traders are preparing for a significant post-earnings move, likely to the upside.
