I recently put together something interesting on Nvidia (NVDA) because it demonstrates how you can structure an earnings play to create profit potential across a broad price range.
I built three trades that overlap…
A put butterfly, a call calendar spread and a call butterfly positioned at different strikes. Together, they cover several possible earnings outcomes rather than relying on one precise directional forecast.
The Structure, Profit Zones and Risk
The put butterfly targets $192.50, positioning me for a move toward the $190 lows. The call calendar spread centers at the $212.50 pivot, while the call butterfly targets $230 and could benefit from a run toward the all-time highs near $236.
By Friday morning, this combined structure may offer profit potential if NVDA is trading between approximately $188 and $235. Each strategy supports a different part of that range, creating flexibility that a single spread would not provide.
The true risk graph is especially important. Instead of showing one large breakeven point, it creates several peaks around the target strikes with overlapping support between them.
The weakest area is a narrow dead zone around $197 to $200, where the modeled risk may be roughly $20. Outside that pocket, the other structures begin contributing and help tighten the overall risk profile.
That matters around earnings, when implied volatility is elevated and the stock can move sharply in either direction. Rather than trying to predict the announcement perfectly, this setup defines a wide range that can accommodate many realistic post-earnings outcomes. The risk remains relatively small as long as NVDA stays within that range, though any move beyond the outer boundaries can still produce a loss.
The Friday Morning Decision Point
This is not about holding until Friday’s close and demanding a maximum 10-to-1 return, though that may be possible if the stock pins an ideal strike. My focus is the opportunity on Friday morning, after the earnings move has occurred and the market begins repricing volatility.
If one position offers a 3-to-1 or 4-to-1 profit, that gain could cover the risk on the other two trades and still leave a net profit. I do not need NVDA to land exactly at $192.50, $212.50 or $230 for the overall structure to work.
If the price begins gravitating toward one of those strikes, I can consider holding for 5-to-1 or 6-to-1 potential. But I am not forcing that outcome. I am using defined risk, overlapping profit zones and a clear Friday morning decision framework to take what the market gives me.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Silas Just Showed Me His Morning Trading Logs…
Sprinting into the market right at the open often leads to getting chopped up by institutional chaos.
But I’ll be live with trading veteran Silas Peters to show you why waiting until 9:50 a.m. ET lets you target $500 payouts on a $1,000 stake…
And you’re done trading before lunch.
