The NVDA earnings are finally out, and the conference call is happening as I am typing these words. As the Price Cone indicated, the anticipated range post-earnings was absolutely gigantic, spanning from nearly $110 to $160.
Considering the enormous implied volatility, the 1.5% move is absolutely pipsqueak, many every single owner of short-term options (puts OR calls, it doesn’t matter) is going to see their portfolio shrink instantly tomorrow morning. As I mentioned both here and, on my show, I trimmed my exposure mightily, having sold my entire NVDA position, half my SMH position, and the entirety of my AMD position, during Wednesday’s session (all three with handsome profits).
The thing is, NVDA has actually become a total bore. From October 2022 through June 2024, it went up OVER ONE THOUSAND PERCENT, and people seem to have it in their heads that NVDA is a thrill.
It ain’t. The stock has been GRINDING AWAY GOING NOWHERE for the past NINE MONTHS, so, yeah, fellas, get over it. The salad days ended last June! Stop obsessing!
Anyhoo, glad to have this past us, and I’m even more glad this bad boy isn’t up $50 after hours. The only real winners here were the SELLERS of options, because all that sweet, sweet IV went straight into their bank accounts.
