The GPU giant will report earnings after the close next Thursday
Technology name Nvidia Corporation (NASDAQ:NVDA) is trading higher this morning, after getting upgraded to "overweight" from "equal weight" at Barclays, which also lifted its price target to $280 from $265. The brokerage firm said it believes the chip producer will benefit from the next wave in artificial intelligence, while also predicting strength in the company's gaming business. At last glance, NVDA stock was up 0.7%, to trade at $227.80.
Looking back, the semiconductor stock is up 118% year-over-year, and touched a record high of $254.50 on March 13. While it's pulled back some since then, the 32-week moving average has seemingly stepped up as support.
In the option pits, traders have been more bearish than normal in recent weeks. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the security with a 10-day put/call volume ratio of 0.84, ranking in the 94th percentile, indicating that puts have been purchased over calls at a faster-than-usual clip over the past two weeks. Echoing this, Nvidia's Schaeffer's put/call open interest ratio (SOIR) of 1.14 ranks in the 73rd percentile of its annual range, suggesting near-term traders are more put-biased than normal.
And with the company's earnings slated for one week from today, it's worth noting that NVDA sports a Schaeffer's Volatility Scorecard (SVS) of 89 out of 100. This lofty ranking means the equity has tended to register bigger price swings than its options premiums have priced in over the past 12 months.