Deutsche Bank strategists reported that equity sentiment turned modestly more positive after Nvidia’s earnings, following a quiet cash session for the S&P 500 and Nasdaq. Nvidia posted a revenue beat and guided for the current quarter at $108bn versus a $105.2bn estimate, while management outlined an expectation for around 70% revenue growth in the fiscal year starting January 2027. The stock rose 4.7% in after-hours trading after falling 1.59% in the regular session, helping lift S&P 500 futures by 0.48% and Nasdaq futures by 0.83%.
Tech-linked moves also drew support from other earnings reactions. Salesforce issued a slightly stronger sales outlook and expanded its partnership with Anthropic, while CrowdStrike shares jumped by nearly 10% after-hours. Asian equities traded higher in the follow-through, led by South Korea’s Kospi up 1.49%; China’s CSI 300 gained 0.50% and the Shanghai Composite rose 0.60%, while Japan’s Nikkei added 0.18%. Hong Kong’s Hang Seng was lower by 0.46%.
Derivative Strategies For A Tech-Led Rally
We believe derivative traders should actively position for a tech-led rally in the coming weeks by leveraging bullish options strategies. Following Nvidia’s blockbuster earnings and projected 70% growth, tech-heavy indices are poised to break out of their recent consolidation phases. We recommend buying near-the-money call spreads on major tech ETFs to capture this upside while limiting premium decay.
Historically, robust tech earnings have served as a powerful catalyst for broader markets, much like the AI-driven expansion of 2024 which pushed the S&P 500 to consecutive record highs. With S&P 500 futures rising 0.48% and Nasdaq futures up 0.83% today, market momentum is clearly shifting upward. To capitalize on this, we favor selling cash-secured puts on recovering giants like Salesforce and CrowdStrike to collect premium as their post-earnings support levels solidify.
Global Momentum And Risk Management
The bullish sentiment is not confined to the US, as Asian tech indices like South Korea’s Kospi jumped 1.49% overnight on the news. We should look at call options on global tech-exposed ETFs to benefit from this international tailwind. Historically, when global semiconductor demand indicators are this strong, the CBOE Volatility Index (VIX) tends to compress, making debit spreads highly cost-effective right now.
While the immediate outlook is highly positive, we must remain mindful of upcoming September macroeconomic data that could trigger short-term swings. We suggest using a portion of options profits to buy cheap, out-of-the-money protective puts on the S&P 500 as a portfolio hedge. This ensures our trading books remain resilient against any sudden macro shocks while we ride the current AI-driven wave.
