Thursday, August 24, 2023 12:52:28 PM
Flow Update - Aug 24
$NVDA put on a hell of a show last night for its ER. It not only met the incredible guidance it set, but beat it. Then pushed up next quarter's guidance. The problem for options is that it ran hard into the ER and the options are getting crushed today since it's under 500. The call side was looking for 510+ and puts were looking for 450-. It's sitting right in between that so both sounds are getting hit. Now, what's interesting about this is the Flow today (below). My read? Options dealers are going to hold NVDA right in this range to kill off as many puts/calls as they can through Friday's close where all the premium was. Then on Monday it can resume its march. Somebody else is thinking that because they're using the opportunity to buy relatively short-dated NVDA calls today. There was nothing in that ER that was bad. It blew away all expectations and with the new EPS, the P/E isn't going to be that bad (amazingly) in a few quarters.
$NVDA put on a hell of a show last night for its ER. It not only met the incredible guidance it set, but beat it. Then pushed up next quarter's guidance. The problem for options is that it ran hard into the ER and the options are getting crushed today since it's under 500. The call side was looking for 510+ and puts were looking for 450-. It's sitting right in between that so both sounds are getting hit. Now, what's interesting about this is the Flow today (below). My read? Options dealers are going to hold NVDA right in this range to kill off as many puts/calls as they can through Friday's close where all the premium was. Then on Monday it can resume its march. Somebody else is thinking that because they're using the opportunity to buy relatively short-dated NVDA calls today. There was nothing in that ER that was bad. It blew away all expectations and with the new EPS, the P/E isn't going to be that bad (amazingly) in a few quarters.
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