NVDA approximately priced “right”?
August 29, 2024
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–Stock futures sold off going into NVDA earnings, and fell further post-call, but are higher this morning. SMCI was down over 25% yesterday, though it rallied back with a loss of only 19% at 443.49. In March this stock traded over 1200, yesterday the low was just under 400, a drop of 2/3rds. Of course, its market cap is less than 10% of NVDA, but it’s still a dramatic move for a former darling.
–Rates were quiet. Net change on SOFR strip +0.5 to -1.0. Tens rose 2.3 bps 3.839% in front of today’s 7-year auction. Other news today includes Jobless Claims expected 232k and the 2nd revision of Q2 GDP. PCE prices are released tomorrow, expected 2.6% yoy with Core 2.7%, both up 0.1 from last month. TYV4 114^ settled 1’37 ref 114-025. To get the same vol all else equal on Sept 3, the straddle price would have to be 1’23…likely to be some weight on premium today and Friday.
