<div id="readability-page-1"><span></span><div><p>There are stocks and then there is <span id="SpecialReportArticle-QuoteInBody-1">Nvidia<span><span id="-WatchlistDropdown"></span></span></span>.</p><p>The chip giant is almost an asset class to itself, and that makes Wednesday night's earnings a market event. But as investors gear up for the big print, something curious is happening in the options pits.</p><p>When it comes to options markets, convention is almost always the same: investors pay up for downside protection, pushing implied volatility on out-of-the-money puts above that of equivalent calls. It's the fingerprint of a market that hedges first and speculates second. </p><p>Nvidia is currently flipping that script. Ahead of earnings, NVDA's short-dated calls are trading at a premium to puts. Positive skew is genuinely uncommon in equities. The market is, in effect, pricing more uncertainty to the upside than the downside. </p></div><div><div>Stock chart icon<p><img src="https://imageproxy.pbkrs.com/https://static-redesign.cnbcfm.com/dist/a54b41835a8b60db28c2.svg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://static-redesign.cnbcfm.com/dist/a54b41835a8b60db28c2.svg"/></p></div><p>Nvidia, YTD</p></div><p>For options traders, that creates a structural edge worth exploiting. With the stock around $222, the options market implies a roughly $14 move by week's end. The $245 calls sit $23 out of the money. The $205 puts sit just $17 out of the money. The calls are further away — and yet they cost more. That gap is the opportunity, and here's two ways to profit:</p><h2>Trade 1:</h2><p>For existing shareholders (or those who buy the stock today), a zero-cost collar with upside tilt: Sell the $245 call at $1.15 to finance the $205 put. The call premium funds your downside hedge — for free. You cap your gain but create a protective &#34;floor,&#34; and the math favors you. Max gain: +$23 (~10.4%). Max loss: −$17 (~7.7%).</p><h2>Trade 2:</h2><div><p>For bullish participants who only want the options trade with asymmetric risk/reward: the $210 / $240 call spread.</p><p>Buy the $210/$240 call spread for ~$13. The implied move is roughly $14 — meaning you nearly break even if the stock goes nowhere and potentially make $17 on a price jump. A defined-risk, asymmetric bet that offers 30% more upside potential than downside risk with virtually no standstill decay (loss) if the stock remains unchanged. Max gain: +$17. Max loss: −$13. Push if flat</p><p>In short, enthusiasm for Nvidia is creating unique opportunities in the options market. They don't happen often. </p></div><div><p>Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</p></div></div>

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<p>Ahead of Nvidia's earnings, short-dated calls are trading at a premium to puts, indicating unusual market behavior. This positive skew suggests more upside uncertainty. Options traders can exploit this with strategies like a zero-cost collar or a $210/$240 call spread, offering unique profit opportunities in a typically bearish options market.</p>

- Nvidia's upcoming earnings report is generating significant interest as its options market shows unusual characteristics.  
- Ahead of the report, short-dated calls are trading at higher premiums than puts, indicating investors expect more upside uncertainty.  
- Two trading strategies are proposed: a zero-cost collar for shareholders and a $210/$240 call spread for bullish traders, both aiming to capitalize on this unique market situation.

Something very unusual is happening with Nvidia options