Reported 5 months ago
Bank of America has outlined a strategy for investors to hedge against potential market volatility stemming from Nvidia's upcoming first-quarter earnings report, which could significantly impact the stock market. The chip maker's past earnings have had a substantial effect on the S&P 500's earnings growth, with its upcoming report anticipated to result in an 8.5% move in Nvidia's stock price. Bank of America suggests that instead of purchasing options on major indices like the S&P 500, investors should consider buying call or put options on Nvidia itself to better hedge against potential market fluctuations driven by Nvidia's earnings results.
Source: YAHOO