Nvidia Corp. (NASDAQ:NVDA) is set to report earnings after the close Wednesday, and options traders are positioning for a sizable move in the AI chip leader's stock.

NVDA stock is moving ahead of earnings. See the price action here. 

Expectations remain high heading into the print. Consensus estimates call for adjusted earnings of $1.76 per share on revenue of $78.8 billion, according to Benzinga Pro data.

But for Nvidia, the question is rarely whether the company can beat Wall Street estimates. It is whether the beat, and more importantly the guidance, will be strong enough to satisfy investors.

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NVDA Options Activity

Adam Turnquist, chief technical strategist for LPL Financial, said options activity has picked up ahead of the report as traders brace for volatility.

"Option activity has accelerated sharply ahead of the event, with the $250 call strike and $200 put strike carrying the highest levels of open interest," Turnquist said. 

"Bullish positioning continues to dominate, with call demand significantly outpacing put demand ...