Nvidia (NVDA) Stock Drops Over 6.5% Ahead of Earnings Reports

Nvidia (NVDA) experienced a decline of more than 6.5% from its recent highs on Thursday, significantly impacting options traders. On Monday, over 3 million contracts were traded, with total premiums exceeding $1.3 billion, notably more than double for calls compared to puts. Popular call contracts included 225 and 222.5-strike calls, each trading over 220,000 times. Traders anticipate a 6.25% swing based on implied volatility for the earnings report, compared to an average realized move of 3.2%, indicating potential volatility ahead.