Nvidia Earnings Meets Jackson Hole: Cheap Volatility Opportunities

The $100 Options Trading Club highlights two significant events this week: Nvidia's earnings on Wednesday and the Jackson Hole symposium. The market is pricing low risk into these top-tier events, making protection unusually cheap.

For Nvidia's earnings, a beat-and-raise has been the norm, but expectations are stretched. A long call with an 8% out-of-the-money strike costs around $1.20, while a closer strike is available but comes with a higher premium of $2.5-$3.5.

On the other hand, Nvidia's low implied move means the lottery tickets are less overpriced than usual. A long call with a 10% out-of-the-money strike costs around $1.00.

Meanwhile, at Jackson Hole, the Fed's annual symposium is a significant macro event. The market is pricing low risk into this top-tier event, making protection unusually cheap. A long put with a 1.5-2% out-of-the-money strike costs around $0.95, while a long call with an 1.5% out-of-the-money strike costs around $1.10.