Nvidia has consistently beaten earnings estimates over the last ~2 years but the stock has dropped on earnings day or the following day in 7 of the last 8 reports (as detailed in top comment data). Market expectations are already priced in; forward guidance may disappoint or macro factors (solar flare joke aside) trigger a sell-the-news reaction. Short NVDA into earnings or immediately after a gap-up, based on the established pattern of post-earnings reversals. A clean beat with raised guidance could break the pattern; IV crush could hurt short options plays.
Nvidia has consistently beaten earnings estimates over the last ~2 years but the stock has dropped on earnings day or the following day in 7 of the last 8 reports (as detailed in top comment data). Market expectations are already priced in; forward guidance may disappoint or macro factors (solar flare joke aside) trigger a sell-the-news reaction. Short NVDA into earnings or immediately after a gap-up, based on the established pattern of post-earnings reversals. A clean beat with raised guidance could break the pattern; IV crush could hurt short options plays.