From Nasdaq: 2025-05-27 17:56:00

Traders are bracing for potential volatility ahead of Nvidia’s critical earnings announcement, with defensive put-option trading on the VanEck Semiconductor ETF surging to its most cautious level in ten months. Nvidia’s strong influence on the semiconductor sector has investors cautious about possible disruptions and market reversals.

Nvidia’s upcoming earnings are seen as a pivotal event that could significantly impact the semiconductor market. Defensive options trading has reached its highest level in 10 months, reflecting elevated sector-wide risk perceptions and uncertainty about Nvidia’s performance. Short-term volatility is expected depending on Nvidia’s guidance and commentary post-earnings.

Despite broader caution in semiconductor ETFs, options activity on Nvidia itself is mixed, with some traders selling options to capitalize on high volatility premiums. Analysts maintain positive outlooks for Nvidia, citing its leadership in AI infrastructure and potential for post-earnings gains. Continued caution in semiconductor ETFs is expected post-earnings, depending on Nvidia’s results.

A surge in defensive put-option trading on the VanEck Semiconductor ETF signals heightened investor apprehension about potential sector-wide volatility following Nvidia’s earnings. Nvidia’s significant influence on the ETF and the broader semiconductor industry could lead to substantial market reactions. Analysts anticipate a slowdown in Nvidia’s revenue growth and potential EPS miss post-earnings.

Nvidia-specific options reflect a more balanced sentiment, with some traders capitalizing on volatility premiums rather than strictly hedging against declines. Investors are closely monitoring Nvidia’s earnings as they set the stage for semiconductor market dynamics moving forward. The company’s signals regarding demand trends, AI growth, and market conditions will shape investor strategies.



Read more at Nasdaq: Nvidia (NVDA) Earnings Spark Defensive Moves in Semiconductor ETF Options