How Traders Are Positioning for the Biggest Report of the Year: Nvidia Earnings

by | Feb 24, 2025

See the secret behind these $1k weekly payouts — streaming at 7 p.m. ET!

Nvidia (NVDA) reports earnings next week, and it might just be the most important report of the entire year. This stock isn’t just a semiconductor leader — it’s a pillar of the entire market. The Magnificent Seven have driven most of the S&P 500’s returns, and Nvidia has been at the center of that rally.

If it delivers a strong report, that could send the market higher, dragging the Nasdaq 100 (QQQ) and S&P 500 (SPY) with it. But if the report disappoints — or even if investors just decide to take profits — it could get ugly fast.

The Make-or-Break Earnings Report

With the stock trading near all-time highs, expectations are sky-high. Analysts are watching revenue growth in artificial intelligence and data centers, and anything less than spectacular could trigger a sell-off.

A miss or weak guidance won’t just hurt Nvidia — it could pull down the entire Technology sector (XLK).

This market has been hanging on by a thread. The S&P 500 just backed off all-time highs, and we’re starting to see weakness in key names.

Walmart (WMT) warned about the consumer, Amazon (AMZN) is under pressure, and even Costco (COST) is showing some hesitation. If Nvidia fails to deliver, that selling pressure could spill into the rest of the market.

How Traders Are Positioning

Options traders are pricing in a massive move, with implied volatility elevated ahead of the report. That means premiums are expensive, making it tough to buy calls or puts outright.

Instead, traders are looking at spreads — iron condors, butterflies and ratio spreads — to limit risk while still capitalizing on the move.

For those betting on upside, bull call spreads offer a way to take advantage of a post-earnings rally without overpaying for options. But for traders expecting a pullback, put spreads or hedges in leveraged ETFs like SQQQ could provide downside protection.

This report has the potential to be a major inflection point for the market.

If Nvidia crushes expectations and guides higher, it could reignite the rally. But if investors use earnings as an excuse to sell, the market could finally get the correction it’s been flirting with for weeks.

Either way, traders need to be ready. This week could be a wild one.

I’ll see you in the markets.

Chris Pulver
Chris Pulver Trading

Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!

Important Note: No one from the ProsperityPub team or Chris Pulver Trading will ever contact you directly on Telegram.

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

P.S. The Secret Behind these Weekly $1,000 Payouts

A majority of Americans now believe inflation is back. But the “Weekly Windfalls” is punching back, targeting one ticker at the same time every week.

See the ticker behind our 18-trade win streak… Targeting $1,000 every week (with a $5k starting stake).

Tune Into the Weekly Windfall Summit at 7PM ET

What to read next