Option Trader’s Weekly Earnings Watchlist 08/27

This week, keep an eye on $NVDA, which will release its quarterly earnings on Wednesday.

Here are this week’s earnings releases, with highlighted symbols in the purple box as implemented by the TanukiTrade Options Overlay indicator for Tradingview.

• 08/28 Wednesday after market close: NVDA , CRWD , CRM
• 08/29 Thursday after market close: MRVL

The Options Screener indicates that NVDA's call skew is above 55% at 54DTE, meaning that CALL options are priced 55% higher than PUT options for the binary expected move distance. This suggests that the market is pricing in a strong upward move.

[ NVDA Price Targets ]

The yellow curve represents the binary expected move, while the blue curve shows the 16-delta OTM options. The green rectangle highlights the area where you can potentially profit from the butterfly trade if the earnings report meets bullish market expectations.

Upward price levels:
7/8 – 138
8/8 – 150

Downward price levels:
6/8 – 125
5/8 – 112

If you agree with the market’s bullish sentiment, one of the best R:R trades might be a directional NVDA call butterfly. You can buy it for $109 with the nearest Friday expiration, with a maximum (theoretical) profit of nearly $900. It’s worth executing this trade before the earnings announcement. Note that the green dashed line is theoretical; while it's not a traditional trendline according to classic TA, the long-term upward trend is still quite clear