The options market is predicting a big swing in Nvidia (NVDA) shares when the chip giant releases its second quarter earnings on Wednesday, August 28.

BayCrest equity derivatives managing director David Boole joins Catalysts to give insight into the market's expectations for Nvidia earnings. According to Boole, the options market is pricing in a 9.9% move in Nvidia's stock following earnings.

"$300 billion in market cap is expected to be created or destroyed Wednesday after the close... I can't find another catalyst in the single stock option world that has that. We've never seen anything like this before," Boole told Yahoo Finance.

Boole added: "The trades that I like essentially dovetail with that view where you can sell. I like selling a $115 put that expires this Friday and selling a $140 call that expires this Friday. That's down about 11% on the downside, up 8% if the stock goes higher. That's a big range. That's essentially what the options market is expecting."

Follow along with Yahoo Finance's latest coverage of Nvidia ahead of its earnings this week:
Why Nvidia's stock rally is not driving broader market gains
Nvidia earnings highlight a busy end of August: What to know this week
Nvidia gets ready to take over the stock market (again)
Nvidia earnings: What the options market is anticipating
Nvidia still the best AI chip play right now: Analyst
4 AI terms Nvidia investors should know
Nvidia earnings 'absolutely key to the AI infrastructure trade'

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino