Nvidia’s Q3 earnings report sparks investor strategies ahead of November 19 release
Nvidia Corporation (NVDA) is set to release its earnings and free cash flow for the quarter ending October on November 19. Analysts anticipate significant revenue growth, with projections of $207.56 billion for the year ending January 2026 and $290.11 billion for the year ending January 2027. Mark R. Hake, a financial analyst, has historically maintained a bullish stance on NVDA stock.
As the earnings release approaches, investors are exploring various strategies. One option is to short the $170 put option expiring December 12, 2025, which offers a 1.94% short-put yield for the next 27 days. If NVDA falls 4.8% to $181.00, the investor's breakeven point would be $173.80, or -8.60% below Friday's close of $190.17.
Alternatively, selling short the December 19 expiry $181.00 put option contract for a midpoint premium of $7.20 has a short-put yield of almost 4.0%. A more conservative approach is to sell short out-of-the-money (OTM) put options to set a lower buy-in. If Nvidia's Q3 FCF comes in higher than 29%, a higher price target could be reset, potentially reaching the set target of $230 based on expectations of a 39.0% free cash flow (FCF) margin over the next year.
NVDA stock has shown volatility leading up to the earnings release, closing at $190.17 on Friday, November 14, after reaching a recent peak of $206.88 on November 3, but still up from a low of $188.15 last Friday, November 7. With analysts predicting significant revenue growth and Mark R. Hake's historical bullish stance, investors are strategizing their moves in anticipation of the earnings report.
