As NVIDIA (NVDA) prepares to release its earnings report, options traders are paying close attention to the implied move and positioning. According to GS, the implied move is 5.4%, while positioning is currently at 7.5/10. However, there’s a more significant indicator that could signal a bullish outcome for NVDA: the inverted put-call skew.

Historically, when the skew has been inverted ahead of earnings, it has resulted in an average one-day move of +9.0% for NVDA compared to a +2.5% average daily move for earnings. This is a significant difference, indicating that options traders are more bullish on the stock than they are bearish.

So why does this matter? Inverted skew suggests that options traders are paying up for upside protection, which can lead to higher stock prices. Additionally, when the skew is inverted, it often signals that traders are more confident in their bullish views, leading to increased buying pressure on the stock.

Of course, past performance is not always indicative of future results, and there are many factors that can influence NVDA’s earnings report. However, the inverted skew is a promising sign for those looking to trade NVDA options ahead of the report.