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(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking at ways to play Nvidia earnings in the options market ahead of the latest report for the AI chip giant. Plus, a look at the industrial sector. Worldwide Exchange Pick: Industrials Stephanie Aliaga of JPMorgan sees more upside in industrials ahead of Nvidia earnings even with the sector gaining more than 16% year to date. Key to Aliaga’s bull case are the capex investments by megacap tech names — with Alphabet , Amazon and Meta all announcing double-digit increases to their spending plans last quarter. “Industrials have seen a really stellar run this year but we think this likely has more legs to come as investors continue to diversify their exposure from the mega caps and also access some of the opportunities coming from this capital infusion.” “We increasingly need to look beyond just the companies spending the money and where all that capital is flowing. We are in the midst of a significant capital spending boom,” Aliaga added. Options market and Nvidia The options market is implying a 6% upside or downside move for Nvidia post earnings. Tom Sosnoff of Tastytrade said he sees significant risk for a move lower in the chipmaker. “I’m definitely playing this earnings reports, I’m playing the downside small,”‘ Sosnoff said. “I think it’s overpriced, I think the stock should be inside the expected move to the downside.” He added valuation is a factor in his trade but may be less for most retail traders with Nvidia’s forward PE sitting at 36. “From a traders perspective, I think traders think it is rich … the PE ratios don’t come into play as much as the general feel of how something is trading at these levels and it’s the most valuable company in the world, I think that has to be considered a little rich.” Tech trade ahead of Nvidia earnings David Royal of Thrivent said investors should maintain their tech holdings ahead of Nvidia earnings. “We like Big Cap tech overall, we think the earnings power of Big Cap tech is strong. I wouldn’t be lightening up on tech,” said Royal. “There is a lot of liquidity out there about $7 trillion dollars sitting in US money market funds, that’s up from $4 trillion a few years ago, that money would easily find it’s way into mega cap tech if Nvidia beats,” he said.
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