BEIJING, CHINA – MAY 14: Nvidia CEO Jensen Huang (C) gestures while preparing to depart after a welcome ceremony at the Great Hall of the People on May 14, 2026 in Beijing, China. President Trump met with Chinese President Xi Jinping in Beijing to address the Iran conflict, trade imbalances and the situation in Taiwan, while establishing new bilateral commissions to monitor the economy and AI. (Photo by Alex Wong/Getty Images)
Alex Wong | Getty Images News | Getty Images
Earnings of major chip companies Nvidia Always a big story for the stock market, this one has been monumental in its buildup, resurfacing hopes that a U.S.-China trade deal might open the door for the company to start selling chips to Chinese companies.
The world’s biggest stock has risen an additional 20% since May 5, including a 4.4% rise on Thursday, following reports that the United States has authorized a small number of Chinese companies to buy Nvidia’s H200 processors used in AI applications. Nvidia’s market capitalization now stands at just under $5.7 trillion, up from $4.7 trillion as of last Tuesday’s market close.
Nvidia will start on May 5th.
The stock’s jump means many bullish options traders who were buying calls ahead of this quarter’s earnings report are already “in the money,” meaning the stock is trading above its strike price. This will increase leverage in the options market ahead of option expirations on Friday and next week, with $40 billion in option delta trades being traded for just $4 billion in total premium.
Nvidia’s big deadline
Nvidia will report after the bell next Wednesday, May 20th.
The top 10 most popular Nvidia options by volume all expire today, with the 235-strike call accounting for $114 million in option premium and nearly $5 billion in delta. Those traders will have to sustain this week’s gains at least through Friday’s bell or face a sharp decline.
“How do you evaluate China going back to Nvidia? I think that’s what’s changing people’s positions right now,” said Brent Koczuba, founder of Spot Gamma. “We’re getting some very valuable calls.”
Traders are expecting big moves in next week’s results. The implied volatility of Nvidia’s earnings is just under 7.5%, which is more than double the median movement over the past four quarters.
The most popular volume-based option contract, the May 22nd 250-strike call selling for about $4, which expires next Friday, requires at least that much.
