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“JPMorgan Urges Bullish Options Play on Nvidia Ahead of Earnings Report” 🚨🚨🚨

Nvidia NVDA $184.40 (-1.88%), the world’s most valuable publicly traded company, has noticeably underperformed its semiconductor peers over the past three months. But with its fiscal 2026 third-quarter results set to drop after Wednesday’s close, JPMorgan believes the lull may be setting up a powerful rebound — and they’re urging clients to take advantage with a targeted bullish options play.

JPMorgan’s equity derivatives team expects Nvidia to deliver an earnings beat along with strong signals that both the company and its suppliers are positioned to handle surging AI-related demand. That combination, they argue, could be enough to kick off a catch-up trade that sends Nvidia shares charging back toward record highs.

“We favor owning call spreads as a strong beat-and-raise from NVDA and positive commentary around supply could clear recent sector underperformance and could propel NVDA above its average historical move,” wrote Bram Kaplan, JPMorgan’s head of Americas equity derivatives strategy.

The Firm’s Recommended Trade

JPMorgan is suggesting a call spread that targets a short-term pop after the earnings release:

• Buy calls with a $197.50 strike, expiring this Friday

• Sell the same number of calls with a $207.50 strike, also expiring Friday

The market is currently pricing an implied move of ±6.4%, meaning Nvidia would need to rise above $199.30 by expiration for the strategy to break even.

Nvidia shares have traded in a tight range — roughly $180 to $210 — since late September. The upper strike of $207.50 caps gains below the stock’s recent intraday peak of $212.19 on October 29, but still provides significant leveraged upside if earnings impress.

Risk–Reward Profile

• Max gain: ~550% of the premium paid

• Max loss: 100% of the premium

With AI demand still exploding and Nvidia viewed as the industry’s linchpin, JPMorgan sees this week’s report as the potential spark for the next major leg higher.