Volatility in stocks is measured in terms of “IV” (implied volatility) and Nvidia (and Tesla) have some of the highest IV in the stock market which is why they are so interesting for people trading in options making money from theta decay.
Also I would add, volatility measures continued volatility over periods of time, not single days. Most pharma stocks are essentially static for months or years until they announce one good result and the stock jumps 30% in a day. This doesnt mean they are volatile stocks, compare Gileads IV to Tesla for example.
> which is why they are so interesting for people trading in options making money from theta decay.
Exactly, using the IV for supporting their highly risky 0DTE option trading strategies and gambling on earnings rather than investing long term?
> Most pharma stocks are essentially static for months or years until they announce one good result and the stock jumps 30% in a day.
That is the point on long term 'investing'.
A much lower risk and patient strategy to invest and buy such low priced stocks at the bottom for the long term and take profit after the price jump rather than gambling on ridiculous short term option trades or the retail favourite of 0DTE trading strategies which that is just plain gambling.
Also I would add, volatility measures continued volatility over periods of time, not single days. Most pharma stocks are essentially static for months or years until they announce one good result and the stock jumps 30% in a day. This doesnt mean they are volatile stocks, compare Gileads IV to Tesla for example.