Bonawyn Eison Sees Unusual Options Activity In Nvidia

On CNBC's "Options Action," Bonawyn Eison spoke about calls and puts ratio in NVIDIA Corporation NVDA heading into earnings. Calls outnumbered puts 2 to 1 on Tuesday and Eison has seen this trend over the last 20 days.

The options market is implying a move of 6.7% in either direction on the earnings event and it moves around 5% on average over the last four fiscal quarters.

During the session, Eison noticed a purchase of 10,000 contracts of the August $500 calls for $12.25. The trade breaks even at $512.25 or around 4.5% above the closing price on Tuesday.

Nvidia reports second-quarter earnings after Wednesday's market close.