Elon Musk will provide insights on his involvement with DOGE during Tesla’s earnings call on Tuesday. Tesla’s shares have decreased by $16.80 or 6.95%, now standing at $224.59. This follows a previous low of $214.25 on 7 April, marking a 53% decline from December’s high.
Nvidia is reportedly facing issues with a forthcoming chip, leading to delays of several months. The seriousness of these problems has not been independently verified. As a result, Nvidia’s shares have decreased by $5.44 or 5.34%, with a current trading value of $96.03.
Tesla’s share price has shown a marked downturn this month, erasing the slight recovery from early April and confirming growing unease among investors. The broader selloff appears to be driven not only by direct financials but also by expectations around Musk’s upcoming commentary, notably in relation to cryptocurrency. His history of linking corporate behaviour with digital assets has added more volatility than clarity in past quarters. With the stock now down over half from its December highs, the move lower is about more than just headlines; it reflects fatigue around core operations and a demand for sharper forward guidance.
Meanwhile, the revelation surrounding Nvidia’s chip troubles has introduced a fresh layer of uncertainty. The delay, expected to last months, is not just a technical issue—it’s a supply-side constraint with implications for its route into future markets. Jensen’s track record has cultivated confidence, but the initial 5.34% drop in share price shows that even perceived hiccups carry heft in this sector. We haven’t confirmed just how deep the problem runs, but the doubt itself acts as a drag on sentiment.
For those working with derivatives, this means models may need recalibration. The implied volatility priced into options ahead of Tuesday’s earnings call should be watched closely, particularly around shorter-dated expiries. Gamma risk is likely to increase as traders try to price sudden swings in Tesla’s stock tied to remarks about non-core assets or speculative angles. Hedging strategies built around past earnings events may underperform unless adjusted for these looming external factors.
In the case of Nvidia, that drop presents questions around the reliability of pricing for tech sector derivatives over the next quarter. With production delays stretching into the second half of the year, the current pricing on calls may already be misaligned with reality. Time decay could start working faster against those who took bullish bets without accounting for potential backlog risk.
We would recommend reviewing current exposure to either stock relative to open interest in weekly contracts. Watch closely for changing volume around strike levels near current spot prices, as crowding may occur post-earnings. Any unexpectedly large open interest build-up near round numbers—for example, $220 in Tesla—should be treated as a marker that short-term players are actively positioning for a break or bounce.
Skew in Tesla options is also likely to shift between now and the call, depending on how the market reads premium on directional bets tied to sentiment. For Nvidia, the key is to monitor whether spreads widen in sympathy with other chipmakers, or whether this is interpreted as a firm-specific issue. That would change how we model correlation risk and variance strategies linked to the sector.
If spreads remain wide throughout this week, it suggests growing anxiety is creeping back into tech derivatives more generally. We have already seen a light shift in delta hedging behaviour among institutional desks, particularly in contracts nearing peak roll dates.
