Nvidia Straddle Dead On
So we noted the cost of the straddle in our note yesterday where breakeven on the Options straddle was a price of $507.60 on the upside. Well here is where we are trading after hours at $512 +8.67%:
As far as their Q2 earnings, here, from Zerohedge:
Adjusted EPS $2.70 vs. 51c y/y, smashing estimates of $2.07
Revenue $13.51 billion, up 101% vs $6.70 billion a year ago, and blowing away estimates of $11.04 billion
Data center revenue $10.32 billion vs. $3.81 billion y/y, beating estimates of $7.98 billion
Gaming revenue $2.49 billion, +22% y/y, beating estimates $2.38 billion
Professional Visualization revenue $379 million, -24% y/y, beating estimates of $318.7 million
Automotive revenue $253 million, +15% y/y, beating estimates of $309.4 million
Nvidia also said that the Board of Directors approved an additional $25.00 billion in share repurchases, without expiration. NVIDIA plans to continue share repurchases this fiscal year.
This will drag the Nasdaq higher overnight and into tomorrow barring any change in the sentiment after the earnings call. We suspect larger accounts will use this as an excuse to sell into. As we noted yesterday, nothing has fundamentally changed in regards to the outlook for global economies. We will be back with settles and trackers for our subscribers later tonight.
As far as the Nasdaq Sept futures late day trade pushed to new highs:
15500 in the futures is Key Resistance, we should see selling if we can get there tomorrow first time up.
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