Ahead Of Nvidia Q4 Print, Wall Street Considers This Key Trading Range For The Week

As chipmaker Nvidia Corporation NVDA gears up to release its quarterly earnings results on Wednesday, some analysts now appear to be limited in their optimism for the stock which has gained over 44% since the beginning of the year.

Greg Bassuk, chief executive officer at AXS Investments in New York told Bloomberg earlier that Nvidia is trading rich from a valuation perspective. “There is room for some multiple compression in the weeks and months ahead,” he had said.

Also Read: How To Buy Nvidia (NVDA) Stock

However, despite the recent rally, market participants seem to be persistent in their optimism about the stock as is reflected in the support and resistance levels. Here’s a look at what the options market is perceiving ahead of the results:

Resistance: Options expiring on Friday indicate a maximum accumulation of open interest at the $220 and $225 Strikes on the Call side. This shows professional traders do not expect the stock to breach the $220 in the short term. If a rally occurs, the $225 level will act as the next resistance for the week.

Support: Despite the stock closing at the $206.55 mark on Tuesday, the options market indicates maximum open interest build-up at the $200 strike on the Put side, indicating this level is stiff support in the near term. If this level is breached, the $190 strike shows it could act as the next immediate support for the week.

Investors are now watching out for minutes of the Federal Open Market Committee’s policy meeting that is set to be released on Wednesday which could have a bearing on the market’s movement.

Read Next: Jim Cramer Lists 6 Conditions For Market Selloff To End Amid 'Discouraging' Inflation Data

Market News and Data brought to you by Benzinga APIs
Date of Trade
Strike Price
Posted In: NewsOptionsMarketsTechChip Stockssemiconductors
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!