Options Traders Line Up Hedges Before Pivotal Nvidia Earnings

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(Bloomberg) – Even before the SIM segment was shaken by the US Securities Market from its calmness, some traders were preparing for disturbances.

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While the S&P 500 index was hovering near the highest level ever, the CBOE fluctuation index was much lower. Last week, the premium VIX call options for its highest levels since September 2023 were changing, with more than a million calls on Tuesday.

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Investors began to enhance bets that fluctuations will return because Nvidia Corp profits. On Wednesday it can be the first in a whirlwind of events with the possibility of sending the market to rules. While US President Donald Trump's return to the White House and customs tariffs did not do much for trading trading traders, warning calls in general – from Charlie McClener from Nomura Holdings to Scott Robner of Goldman Sachs.

Read: Merchants accumulate in VIX calls to pressure the merchants

“It seems that NVIDIA definitely has an opportunity to transfer the entire stock market,” said Brent Kochuba, founder of the SpotGamma options platform. On a broader scale, “there are many stimuli to turn to rise over the next few weeks, including customs tariffs and the deadline for the government closure,” saying that the hedging activity was captured on Tuesday, when 250,000 VIX call options were purchased in two trades The block.

NVIDIA has multiplied more than three times from the lowest three times in October 2023, and it became $ 3.3 trillion, optimistic about the artificial intelligence sector. The march turned it into the second largest member of the S&P 500, making the wide market more likely to manipulate the stocks.

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Since the last profit report in November, trading in stocks was volatile, and the jackets caused by Deepseek at the Chinese company AI, which caused it in January. As of Friday, option traders were seeking a 7.7 % at NVIDIA shares after their profits, compared to an average profit or a 9.2 % decrease after the last eight quarterly reports. S&P 500 fluctuated by 0.8 % on average in those days, more than a medium daily step by 0.6 % in the past two years.

“NVIDIA profits and any subsequent fluctuations can definitely affect wider fluctuations,” said Amy Woo Silverman, head of the derivative strategy at RBC Capital Markets. “Any surprise or negative side in NVIDIA profits will have ripples on the names of artificial intelligence and AI-Haaaaaaaaa-

Chip Giant is late in the reports season, as most S&P 500 companies have already published results. The publications, which usually make stocks move more to their melody and less for total economy addresses, helped pay a scale of the relationship achieved for the 50 -member S&P 500 near 0, only from its lowest level ever. Reading 1 means that the arrows move simultaneously.

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Throughout that period, hedge funds were only betting on the calm of the market: until February 18, near the most suspicious VIX futures contracts were in seven months, according to the latest data available from the Justice Trading Committee. The last time the reading was low, the shock of fluctuation in early August was about to happen.

Beyond NVIDIA, a group of stimuli can stimulate the return of market fluctuations in the coming weeks. The Trump tariff for the new Trump tariff for Canada and Mexico is scheduled to end on March 4. Investors will receive the latest reading of US job data after three days, and March 14 is the deadline for an agreement that would avoid closing the government.

Chris Murphy, co -chair of the derivative strategy of the Susquehanna International Group, said.

– With the help of David Marino.

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