The following image is from OptionNet Explorer and shows a great visual of the volatility skew. These options will be impacted the most by volatility changes. We can see that the shortest-term options have the highest level of implied volatility. Here is how the implied volatility looked for the at-the-money options over various expiration dates: Two days before earnings, NVDA was trading at 302.32.
It is a situation where the extrinsic value of an option contract declines sharply because of a significant event occurring.įor example, the reporting of corporate earnings or a regulatory announcement. IV crush is a phenomenon that tends to catch many beginners off guard. Today, we’re going to drill down further into a specific IV crush example using NVDA. You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself.Yesterday, we looked at the concept of IV crush and some specific examples from this year. Simply Wall St has no position in any stocks mentioned. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused analysis driven by fundamental data. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly.
When are nvda earnings free#
If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals. NVIDIA is not the only stock earning high returns. That's where you can check out our FREE intrinsic value estimation that compares the share price and estimated value. So while the positive underlying trends may be accounted for by investors, we still think this stock is worth looking into further.īefore jumping to any conclusions though, we need to know what value we're getting for the current share price. On top of that, the stock has rewarded shareholders with a remarkable 176% return to those who've held over the last five years. In the end, the company has proven it can reinvest it's capital at high rates of returns, which you'll remember is a trait of a multi-bagger. If these trends can continue, it wouldn't surprise us if the company became a multi-bagger. Returns like this are the envy of most businesses and given it has repeatedly reinvested at these rates, that's even better. The company has consistently earned 26% for the last five years, and the capital employed within the business has risen 328% in that time. We'd be pretty happy with returns on capital like NVIDIA. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
Above you can see how the current ROCE for NVIDIA compares to its prior returns on capital, but there's only so much you can tell from the past.
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