Each of the company logos represented herein are trademarks of Microsoft Corporation Dow Jones & Company Nasdaq, Inc. This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. In addition to impressive profit potential, these trades can actually reduce your risk. Looking to Trade Options?Ĭheck out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected. This is a strategy many seasoned traders use because it captures decay.
Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
Given the way analysts feel about NVIDIA right now, this huge implied volatility could mean there’s a trade developing. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.35 per share to 74 cents in that period. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while 11 have dropped their estimates. What do the Analysts Think?Ĭlearly, options traders are pricing in a big move for NVIDIA shares, but what is the fundamental picture for the company? Currently, NVIDIA is a Zacks Rank #5 (Strong Sell) in the Semiconductor - General industry that ranks in the Bottom 28% of our Zacks Industry Rank. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Implied volatility shows how much movement the market is expecting in the future. That is because the $80.00 Call had some of the highest implied volatility of all equity options today. Investors in NVIDIA Corporation ( NVDA Quick Quote NVDA - Free Report) need to pay close attention to the stock based on moves in the options market lately.
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