Close Menu
  • Homepage
  • Local News
  • India
  • World
  • Politics
  • Sports
  • Finance
  • Entertainment
  • Business
  • Technology
  • Health
  • Lifestyle
Facebook X (Twitter) Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
Facebook X (Twitter) Instagram Pinterest
JHB NewsJHB News
  • Local
  • India
  • World
  • Politics
  • Sports
  • Finance
  • Entertainment
Let’s Fight Corruption
JHB NewsJHB News
Home»Finance»Bank of America details the best hedge for a big stock-market move on Nvidia earnings
Finance

Bank of America details the best hedge for a big stock-market move on Nvidia earnings

May 21, 2024No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Bank of America details the best hedge for a big stock-market move on Nvidia earnings
Share
Facebook Twitter LinkedIn Pinterest Email
Nvidia

A bicyclist drives previous an indication outdoors of a Nvidia workplace constructing in Santa Clara, Calif., Wednesday, Might 31, 2023. (AP Picture/Jeff Chiu)Jeff Chiu/AP Picture

  • Nvidia’s first-quarter earnings outcomes this week may transfer the entire inventory market. 

  • Its hovering income and income have pushed the majority of the S&P 500’s earnings development over the previous 12 months. 

  • Financial institution of America shared how traders can hedge in opposition to the chance of Nvidia’s earnings swinging the broader market.

All eyes are on Nvidia this week as the corporate gears as much as report its first-quarter outcomes after the closing bell on Wednesday.

The chip maker’s earnings report may drive a giant transfer within the inventory market, each to the upside or draw back, relying on how the outcomes shake out.

Present choices pricing implies Nvidia will leap or fall 8.5% after its earnings outcomes, which is markedly decrease than prior Nvidia earnings releases when choices merchants have been implying a transfer of of 14%-26%.

Nvidia q1 ai earningsNvidia q1 ai earnings

Financial institution of America

That is as a result of Nvidia and its profitable lineup of AI-focused GPUs have had a large influence on the earnings development of the S&P 500. Over the previous 12 months, Nvidia’s earnings development drove 37% of the S&P 500’s earnings per share development. However over the following 12 months, Nvidia’s earnings development is predicted to drive simply 9% of the S&P 500’s earnings development.

This dynamic highlights the potential market-shaking influence Nvidia may have on the broader inventory market this week, and Financial institution of America has a approach to hedge in opposition to the chance.

As a substitute of shopping for put or name choices on the key indices just like the S&P 500 and Nasdaq 100, Financial institution of America recommends traders purchase name or put choices on Nvidia itself.

In different phrases, if an investor believes the inventory market goes to fall this week on Nvidia’s earnings outcomes, as an alternative of shopping for put choices within the S&P 500 or Nasdaq 100, they need to purchase put choices in Nvidia, and vice versa with name choices in the event that they consider the inventory market will rise.

“For these apprehensive concerning the (optimistic or adverse) influence of NVDA earnings on the broader market, NVDA choices provide higher worth than hedging via indices like QQQ, SPY, SMH (Semis ETF),” Financial institution of America stated.

The reason being that Nvidia choices price lower than choices on the broader indices, in keeping with the financial institution, seemingly as a result of sturdy liquidity and buying and selling curiosity within the AI large.

“Do not mess with proxies; hedge with NVDA choices,” Financial institution of America stated.

Learn the unique article on Enterprise Insider

Source link

America bank big details Earnings hedge move Nvidia stockmarket
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Paycom Makes Solid Progress

May 10, 2025

Tapestry lifts forecasts on booming demand for Coach handbags

May 10, 2025

US oil and gas rig count falls to lowest since January, Baker Hughes says

May 9, 2025

Clarium raises $27m funding to enhance AI-driven solutions for healthcare

May 9, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

‘We had Pahalgam victims in our mind’: Amidst conflict, J&K teenagers win Khelo India volleyball gold | Sport-others News

May 10, 2025

Turkish Tufts University student released on bail

May 10, 2025

Husband Who Left Toddler To Die In Car Heads To Hawaii Amid Legal Woes

May 10, 2025

Operation Sindoor: Now, civil flight operations suspended at 32 Indian airports till May 15 morning amid India-Pakistan standoff | Business News

May 10, 2025
Popular Post

Should She Cash Out? Woman Who Turned $1,000 Into $380,000 In Tesla Stock Asks The Ramsey Show For Guidance

KCR to unveil national plan today at BRS public meeting

Google Docs & Drive are getting native support for eSignatures

Subscribe to Updates

Get the latest news from JHB News about Bangalore, Worlds, Entertainment and more.

JHB News
Facebook X (Twitter) Instagram Pinterest
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
© 2025 Jhb.news - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.