Exceed Investments LLC

🌟 Spotlight on NVIDIA Earnings Tonight! 🌟 As we approach NVIDIA's (NVDA) earnings announcement after the close today, it’s worth noting the impressive performance since ChatGPT's launch on November 30, 2022. That date marked a significant boost in the AI sector, and NVDA has surged an incredible 658% since then! 🚀 NVIDIA has reported earnings six times during this period, with an average stock move of +/- 11.1% the following day. The options market is currently pricing in a 10.7% directional move in NVDA shares by Friday’s close. This is in line with recent averages. Earnings reports often drive significant volatility, but they also present unique opportunities. For investors holding NVDA shares, now might be an opportune time to consider selling covered calls. This strategy can help generate additional income, especially with call options that are far out of the money, potentially offering very attractive yields without sacrificing upside stock participation. 💼💰 Below, we’ve outlined the current opportunity for selling covered calls against NVDA stock positions. All options expire on September 27, 2024, and the income generated is calculated per option contract, which covers 100 shares of stock. Covered calls reduce position volatility and can potentially enhance returns on both an absolute and risk-adjusted basis. Feel free to reach out if you have questions or need assistance with your investment strategy! #NVIDIA #Earnings #StockMarket #OptionsTrading #CoveredCalls #InvestmentStrategy

30% of S&P 500 companies are scheduled to report earnings this week. The chart below compares the historical earnings moves over the past 12 quarterly reports with the current volatility expectations derived from options pricing. #earnings #investing #optionstrategy

The Magnificent 7 Composite Put-Call Skew Index is at Multi-Year Lows The equally weighted Magnificent 7 Composite Put-Call Skew Index has reached multi-year lows. This index compares prices of 25 delta (out-of-the-money) puts and calls, showing the differences in their prices. Currently, out-of-the-money calls on these seven tech stocks are priced significantly higher relative to puts. Key Implications: • Reflects recent price action and current sentiment in these stocks • Creates opportunities for stockholders to efficiently hedge downside risk • Potential for significant yield generation via options strategies With earnings season and the election approaching, this rare skew offers stockholders a timely opportunity to reassess their risk management strategies or explore yield enhancement. Investors with significant positions in these tech giants may want to consider leveraging these favorable options market conditions. #Magnificent7 #OptionsTrading #RiskManagement

Separately Managed Accounts (SMAs) are becoming popular vehicles for income generation - our latest blog takes an in-depth look at SMAs versus Active ETFs. https://lnkd.in/gAbbj5WJ

$NVDA reports earnings after the close tonight, and the options market is expecting about an 8.3% directional move between now and Friday's expiration. This is in line with the average earnings move of +/- 7.4% over the past 12 quarterly reports. What's interesting is that implied volatility on the options has been declining over the past month. Option prices typically rise into a big risk event like earnings, but volatility expectations have been declining in this case. Option prices remain elevated on a relative basis, but the recent decline is noteworthy.

TSLA kicks off big tech earnings tonight after the close. A look at each stock's historical mean earnings moves over the past 12 quarterly reports versus the expected move this week via options.

Recent trends in NVDA options offer favorable terms for holders of the stock who may be looking to protect their position and still participate in significant upside. https://lnkd.in/gf3qXGjB

Interest rates are often overlooked by investors as a key component of option prices. A glance at how the recent meteoric rise in rates can be used to your advantage. https://lnkd.in/gpQDiqcs