Nu Holdings (NU) Surges 9.9% on Q2 Earnings Triumph—Can This Bull Run Sustain Momentum?

Summary
• Nu Holdings (NU) rockets 9.9% post-earnings, net income jumps to $636.84M
• CEO Velez offloads 33M shares, raising questions about insider sentiment
• Intraday price hits $13.51, up 2.79% from $13.10 open

Nu Holdings’ stock is surging on a blockbuster Q2 earnings report, with net interest income and EPS growth driving the rally. However, the CEO’s massive share sale and a volatile options chain signal caution. Traders must weigh the earnings catalyst against short-term technicals and sector dynamics.

Earnings Surge and CEO’s Share Sale Create a Volatile Crossroads
Nu Holdings’ 9.9% intraday jump follows a Q2 earnings report showcasing $2.1B in net interest income and $636.84M in net income, both up year-over-year. The stock’s rally aligns with improved profitability metrics and a 17% YoY customer base expansion. However, the CEO’s 33M-share sale—a 2.5% stake—introduces uncertainty. While the earnings report reinforces the company’s growth narrative, the insider’s exit raises questions about conviction in the stock’s near-term trajectory. The price action reflects optimism but also embedded risks from mixed signals.

Banks Sector Sidelined as Fed Policy Uncertainty Lingers
Options Playbook: Leverage Bullish Momentum with Precision
• 200-day average: 12.30 (below) • RSI: 57.2 (neutral) • MACD: -0.13 (bullish crossover) • Bollinger Bands: 11.75–13.15 (price near upper band)

NU’s technicals suggest a short-term bullish trend amid a long-term range. Key support at $12.21 and resistance at $13.51 define the immediate battleground. The options chain offers high-leverage plays for aggressive bulls. Two top picks:

• NU20250822C13.5 (Call, $13.5 strike, 8/22 expiry):
- IV: 37.85% (moderate) • Leverage: 70.47% • Delta: 0.44 • Theta: -0.07 • Gamma: 0.665 • Turnover: $86,055
- Payoff: At 5% upside ($14.14), profit = $0.64/share. High gamma ensures sensitivity to price swings, while moderate IV balances risk/reward.
• NU20250822C14 (Call, $14 strike, 8/22 expiry):
- IV: 42.40% (elevated) • Leverage: 191.29% • Delta: 0.19 • Theta: -0.04 • Gamma: 0.414 • Turnover: $22,683
- Payoff: At $14.14, profit = $0.14/share. High leverage amplifies returns if the rally extends, though lower delta suits a breakout scenario.

Action: Aggressive bulls should target NU20250822C13.5 for a balanced play on the $13.51 resistance break. If the move stalls, NU20250822C14 offers a high-risk, high-reward bet on a sustained rally.

Backtest Nu Holdings Stock Performance
After an intraday surge of 3%, Nu Holdings (NU) experienced mixed short-term performance in its subsequent 3 days. The backtest reveals a 3-Day win rate of 59.08%, a 10-Day win rate of 63.54%, and a 30-Day win rate of 69.59%. This indicates that NU tends to recover and often exceed its previous levels in the short term following a significant uptick.

Act Now: Nu Holdings’ Earnings Catalyst—Hold, Hedge, or Exit?
Nu Holdings’ earnings-driven rally has ignited a short-term bullish trend, but the CEO’s share sale and a volatile options chain demand caution. The stock’s 2.79% intraday gain suggests momentum, but traders must monitor the $13.51 resistance and $12.21 support. JPMorgan Chase (JPM), the sector leader, is up 0.2%, indicating limited sector-wide tailwinds. Act now: Hold for a breakout above $13.51, hedge with the NU20250822P12.5 put if volatility spikes, or exit if the $12.77 intraday low breaks. The next 48 hours will test whether this earnings-driven surge can evolve into a sustained trend.