Nvidia earnings are set to spark market volatility as some traders prepare for a potential downturn. Despite the S&P 500 Index nearing an all-time high and the Cboe Volatility Index below its five-year average, outstanding VIX calls near their highest level since September 2023. This suggests increased market skepticism, which has been confirmed by recent sell-offs. With more than 1 million call options traded on Tuesday alone, traders are hedging their bets ahead of Friday’s earnings report.
Source: https://www.bloomberg.com/news/articles/2025-02-24/options-traders-line-up-hedges-before-pivotal-nvidia-earnings