Nvidia shares could see big moves on earnings. How to capitalize on the potential swings

Nvidia enters this week's earnings print as the clearest test of whether the AI infrastructure trade still has another leg higher. The stock has pulled back toward its recent $215 breakout zone with earnings scheduled after the close on May 20. Implied volatility remains elevated, and options markets are pricing in an 8.1% move in Nvidia around the event. That elevated volatility creates an attractive setup for premium sellers. Over the past several sessions, institutional options flow has shifted from broad semiconductor hedging toward more targeted catalyst-driven put selling, suggesting large traders are becoming more comfortable monetizing earnings volatility rather than aggressively protecting downside. In Nvidia specifically, two large short-put trades were executed just above the current price, risking over $75m yesterday, signaling that institutional investors may view the $220-225 area as a post-earnings support zone. At the same time, the fundamental case remains unusually strong. Nvidia continues to trade at a discount to the semiconductor peer group despite superior growth, margins, and visibility. With the Blackwell ramp still underway, Vera Rubin expected to drive the next upgrade cycle, and the OpenAI partnership creating multiyear demand visibility, the recent pullback looks like an opportunity to sell premium against a well-defined support area. …