Nvidia (NVDA) started the week trading at $190.00 ahead of an earnings call on Wednesday. The stock has a recent resistance level at $193.00.
For Q4 2025, Nvidia is expected to report revenue of $65.60 billion and earnings of $1.53 per share. This compares with Q3 revenue of $57 billion, a 14% increase.
Nvidia has confirmed partnerships with Meta, Anthropic, and OpenAI linked to its Blackwell and Rubin GPUs. Near the end of 2025, the Trump administration allowed sales of H200 GPUs to “approved customers” in China.
Michael Burry held a bearish position against NVDA worth about $187 million. The last clear breakout above $193.00 was in October 2025, when the stock reached an all-time high of $212.19.
The 10-day and 25-day moving averages have crossed upwards. At the time of writing, NVDA was still hovering around $190.00.
With Nvidia’s stock at $190 ahead of its earnings report this Wednesday, the immediate focus for us is on short-term options strategies. High expectations for record revenue and earnings are creating significant tension in the market. Many traders are positioning for a breakout above the key $193 resistance level.
For those of us with a bullish outlook, buying call options with an expiration date just after the announcement makes sense. A strike price of $195 or $200 would capitalize on a positive earnings surprise, which is a pattern we’ve seen before; Nvidia has a history of beating analyst estimates by over 15% in recent quarters. This move would follow the recent bullish signal where the 10-day moving average crossed above the 25-day average.
However, considering the “AI bubble” talk and Michael Burry’s bearish stance from last year, there is a case for a “sell the news” event. We see this reflected in the options market, where implied volatility for this week’s contracts has surged to over 90%, suggesting traders expect a large price swing in either direction. For this reason, some of us are buying put options with a strike near $185 as a hedge or an outright bet on disappointment.
We remember how a breakout of the $193 resistance level in October 2025 led to a new all-time high. That rally was fueled by news of partnerships and the Trump administration’s loosening of sales restrictions to China late last year. A similar surge is possible, but the stakes feel much higher now.
A more neutral strategy we are considering is a long straddle, which involves buying both a call and a put option at the same strike price, like $190. This position profits from a significant price move in either direction and is purely a play on the high volatility expected after the earnings call. While expensive, it removes the need to guess the market’s reaction correctly.
