Nvidia - Exit Before Earnings?

"Earnings Predictions" Members Up 48% Potential Profit Already On This Options Trade!

by Ian Harvey

August 14, 2018





Nvidia is on a bull run – but will it last after earnings on Thursday afternoon. This call options trade was given as a consideration for ““Earnings Predictions” Members” of Stock Options Made Easy on Monday morning; now up 48% potential profits in two days; more is likely; is it time to exit? Or should you hold until after the earnings report due out Thursday, after the market closes?



The Trade……

…….from……“Earnings Predictions for the Week Beginning August 13, 2018”.

The Details……..

The maker of graphics and high-performance computing chips NVIDIA Corporation (NASDAQ:NVDA) will report earnings after the market closes. The consensus earnings estimate is $1.64 per share on revenue of $3.11 billion; and the Whisper number is $1.80 per share. Consensus estimates are for year-over-year earnings growth of 78.26% with revenue increasing by 39.46%.

Earnings growth has been impressive, with profits rising 62% a year over the last five years, and while growth is slowing versus the high comparable, NVIDIA is still expected to increase earnings by 23% per annum over the next five years which is strong enough to warrant the current valuation, and a string of earnings beats will result in even stronger growth if the company is able to outpace estimates.

NVDA has an incredible earnings track record, and the company consistently shatters estimates.

Falling crypto-currency prices have dampened demand for mining machines lately. But NVIDIA is still seeing plenty of room for head-turning growth across its other portfolio lines, including gaming and artificial intelligence.

Short interest has decreased by 22.9% and overall earnings estimates have been revised higher since the company's last earnings release…continue reading…..

The Trade……..

** Option trade to consider: Buy NVDA SEPT 21 270.000 CALL at approximately $5.50.

Past Earnings Report……

In Q1, NVDA reported $2.05/share in earnings, a 24% positive surprise over expectations. It was the 13th significant beat in the past 14 quarters - a period that has seen shares rally a whopping 1100% from $20.40/share to $260/share since the beginning of 2015.


NVDA is currently valued for continued growth, trading at a forward P/E ratio of 36X, twice the multiple of the S&P 500 at 18X, and three times the semiconductor industry at just 12X.

Throughout its history, NVDA has been the beneficiary of its unique intellectual property to maintain pricing power, gross margins and earnings growth. These efforts will have to continue for the shares to deserve their lofty valuation.

On Monday, the company introduced its next generation of graphics technology with the unveiling of its new "Turing" line of hardware which includes real-time ray-tracing which provides evidence that Nvidia has no intention of slowing down.


Investor expectations are riding high for the graphics processing unit (GPU) specialist, whose business and stock price have been performing wonderfully in recent years with shares having returned 32.4% this year, and is just shy of an all-time high.

The market is used to NVIDIA crushing estimates, so if it fails to do so and "only" beats the expected earnings predictions, it's likely the stock will be punished.

The Profits

So, for “Earnings Predictions” members who managed to execute this trade recommended by Stock Options Made Easy; and wish to take potential profits now, 48%, at last look, was available.

Entering the option trade at a cost of $5.50 or less; and now as high as $8.17; one options contract would provide a profit of $267; or 48% Potential Profit.


It is very possible that further profit can be made from this call options trade, but as they say, “a bird-in-the-hand is better than two-in-the-bush”.

There are several choices to be decided now……

  • ….. take the profits now,
  • …..take half the profits, and then take rest of profits before the earnings report,
  • …..take half the profits, and then take rest of profits after the earnings report, (which is the risk as the company may surprise!),
  • …..continue holding until after the earnings report, or
  • …..wait until expiry.

Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Strategies to Consider……

"When To Exit A Trade Based On Earnings?"

It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” .....READ MORE.....


"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

If you not a member and interested in being part of this profitable action just CLICK HERE.

Other Membership Options…….

If you interested in "Earnings Predictions" just click here……

or "Mentorship Program".....click here....

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

Back to Stock Options Made Easy Home Page from Nvidia - Exit Before Earnings?