If I had to choose just one thing that separates professional traders from the crowd, it would be how we react when the biggest names in the market move the needle.

Nvidia’s earnings report Wednesday beat revenue expectations by about $3 billion.

The stock’s been on a run all year, with projected revenue $65 billion this quarter. 

Now here’s where most traders get lost.

They chase the move after the news, buying options at inflated premiums. 

They forget that by the time something hits the news, the smart money already ate lunch and left the table.

So let’s break this down. Not the earnings report itself — you can read that anywhere. 

Let’s talk about what this means for you.

Before and After

Directional bets before earnings are rarely worth it. 

The risk-reward stinks. 

You’re either right on the move and the magnitude and the timing — or you lose. Most traders underestimate how much has to go right. 

I prefer to trade after the earnings numbers are out because now the facts are available. 

You can read the tape. You can trade with the wind at your back, not guess where the storm might hit.

When the Dust Settles

Now here’s where the pros get to work: Post-earnings setups are gold for credit spreads and directional trades. 

Suddenly the air is clear and you know the numbers. You know where the momentum is. 

Nvidia’s chart Wednesday evening and into Thursday morning gave traders a clean breakout over recent highs, with volume to match. 

That’s when I get interested. Sell premium when it’s fat, buy premium when it’s cheap with direction behind it. 

That’s the sweet spot.

They’re in the Money

And another takeaway? AI is real. This isn’t Pets.com. 

Nvidia isn’t running on hopium. They’re making real money and doing it with margins most companies would kill for. 

Their Stock isn’t up 37% year to date for no reason. 

That means this sector still has room to run. 

But the key is being strategic: Sell into the froth and wait for pullbacks. Trade smart, not fast.

Bottom line: Earnings season isn’t about guessing. It’s about reading, reacting, and understanding how expectations shape price action and how volatility gives you your edge. 

When a heavyweight like Nvidia steps into the ring, you pay attention — not just to the knockout punch, but to how the crowd reacts after.

Because that’s where the next trade is.

Stay Street Smart,
Jeff Zananiri