Nvidia Earnings Preview: JPMorgan Advocates Call Spread Strategy Ahead of Q3 Results
Nvidia shares dipped 2.81% to $181.36 ahead of its Fiscal Q3 2026 earnings report, underperforming semiconductor peers over the past quarter. The options market anticipates a ±7.69% earnings-driven move, with JPMorgan suggesting a $197.50/$207.50 call spread to capitalize on potential upside while limiting risk.
Analyst Bram Kaplan cites sustained AI chip demand and improving supply chains as catalysts for a positive earnings surprise. The recommended options strategy—buying $197.50 calls while selling $207.50 calls—reduces premium costs versus outright call purchases, with maximum loss capped at the trade's initial cost basis.