Expect fireworks when a large-cap company (> $10 billion market cap) has an earnings call. This was the case for Nvidia (NVDA 0.00%↑), as they reported on their Q3 earnings today after the close of the market.
In the video, you’ll notice for the first five seconds, there is minimal trading activity. Then, Nvidia published their earnings report on their website, immediately triggering volatility.
At the 00:44 marker, after a tumultuous drop, an all-too-familiar occurrence happens when the calvary of several big funds finds a buying opportunity. Suddenly, the stock charges north, and more investors, specifically retail investors, attempt to capitalize on the volatility.
The lesson is that when a large-cap company has an earnings call, traders can take advantage of the proceeding volatility. Each trader must assess their risk tolerance on how much they want to put up and their target return on investment.
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