Call volume more than doubles puts as traders position for Nvidia earnings

Nvidia options trading accelerated on Monday as investors positioned for the chipmaker’s earnings report due on Wednesday, with call volume running at more than twice put volume, according to CNBC. The activity put Nvidia among the most heavily traded names in the options market, with more than 3 million contracts changing hands and total premium topping $1.3 billion, CNBC said. About $1 billion of that premium was tied to calls, a figure that at first glance suggested bullish positioning. But the same CNBC report said many of those calls were trading at the bid or below, a sign traders often read as selling rather than fresh upside buying. ### Why did the call-heavy tape not read as a simple bullish bet? CNBC said Monday’s order flow showed more calls than puts by better than 2-to-1, but also said many of the calls appeared to be sold into existing demand. In options markets, a print at the bid or below can indicate a seller was more aggressive than a buyer, which matters because raw call volume alone does not show whether traders are opening bullish positions or exiting them. Thinkorswim data cited by CNBC pointed to that distinction. The report said the pattern suggested less conviction than a headline call-to-put ratio might imply, even as the notional size of the flow remained large. That leaves room for several pre-earnings strategies at once, including covered-call selling, premium harvesting or traders closing positions into a volatile event. ### How big was Nvidia’s options activity compared with the rest of the market? CNBC said Nvidia was the fifth-most traded options name in the market on Monday, behind the major benchmark indexes and Tesla. The 3 million-plus contracts and $1.3 billion in premium underscore how central the company has become to event-driven trading around earnings. Monday’s stock move was less dramatic than the options tape. CNBC’s quote page showed Nvidia shares ended the session at $222.32, down 1.33% on the day. That left traders using options to express views on the report without committing the same capital required to buy or short the stock outright. ### Why are traders so focused on this earnings report? Nvidia’s May 20 report is scheduled to cover first-quarter fiscal 2027 results for the quarter ended April 26, 2026, according to the company’s investor relations page. The earnings call is set for 5 p.m. Eastern time on Wednesday. FXStreet, in a preview published May 18, described the release as a test not just for Nvidia but for broader expectations around artificial-intelligence spending. Other previews cited in market coverage have pointed to China export restrictions, valuation and competition as key issues heading into the report, while bullish cases have focused on new product ramps and networking demand. ### What does recent trading history say about the setup? CNBC said Nvidia shares fell after each of the company’s last three earnings reports, including a 5.5% decline after the February release. That history helps explain why some traders may be using calls and puts less as outright directional bets and more as tools to hedge, sell volatility or structure defined-risk trades into the announcement. April 27 offered a similar example of call-heavy positioning. CNBC reported that calls in Nvidia had also outpaced puts by more than 2-to-1 late last month, with earnings still weeks away, showing that speculative and hedging activity had been building before this week’s event. ### What happens next and where will traders look first? Wednesday, May 20 is the next key date. Nvidia is scheduled to release first-quarter fiscal 2027 results after the market closes and hold its webcast at 5 p.m. ET, according to the company’s investor relations site. Traders will be watching the earnings release, the conference call and the post-results move in shares to see whether Monday’s call-heavy flow reflected conviction, caution or positioning that was already being unwound.