• Options traders are positioning for Nvidia stock to rise following its Q3 FY26 earnings report
  • Heavy trading in call spreads and calls suggests expectations for an upside reaction
  • Implied volatility has eased, pricing in about a 6.9% move post-results

With Nvidia reporting after the close on November 19, options traders are making concentrated bets that the semiconductor giant will deliver another strong quarter. According to trading data, roughly 13,000 December $205/$235 call spreads were purchased—a strategy that profits if Nvidia shares rise after earnings but caps potential upside.

The bullish positioning comes as implied volatility has moderated from previous earnings events. Options now price in approximately a 6.9% move following the results, slightly less dramatic than the swings seen after Nvidia's prior reports. Nearly half of all trading activity is concentrated in contracts expiring November 21, with the $180 strike emerging as the most crowded position.

Today's most active contract was the November 21 $200 call, which saw about 88,000 trades, according to people familiar with the matter. The heavy volume in near-term calls signals that traders are leaning toward an upside reaction despite Nvidia's stock being down roughly 10% month-to-date ahead of the report.

Analysts expect Nvidia to report revenue between $54.9 billion and $55.2 billion for the quarter, representing year-over-year growth of over 55%. Earnings per share are projected at $1.25 to $1.26, with data center revenue expected to reach approximately $49.3 billion. The company's performance is seen as a bellwether for the broader AI hardware market and could reignite momentum in tech stocks after recent volatility.

Efforts to reach Nvidia for comment on the options activity were unsuccessful. The company, led by CEO Jensen Huang, remains the dominant force in AI computing platforms, with its Blackwell chip series continuing to be the preferred choice for high-performance AI projects among hyperscale data center operators.

Correction: An earlier version of this article misstated the expiration date for the most active options contracts. The correct expiration is November 21.