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Jan 17, 2025
NVIDIA Options Trading: A Analysis of Market Sentiment
Investors with significant capital have recently adopted a bearish outlook on NVIDIA (NASDAQ: NVDA). This trend is crucial for retail traders to be aware of.
The recent market activity was highlighted when we analyzed publicly available options trade history.
It remains unclear whether these trades are executed by institutional investors or affluent individuals. However, when large movements occur in NVDA, it often indicates that someone may have insights into upcoming developments.
So, how do we interpret what these investors are doing?
Today, we identified 144 notable options trades involving NVIDIA.
Such activity is not typically seen.
The prevailing sentiment among these high-stakes traders is divided: 36% are bullish while 50% are bearish.
Among the notable options, we found that 70 were put options, totaling $5,030,270, and 74 were call options, amounting to $5,779,524.
Projected Price Expectations
Based on the trading volume and open interest related to these options, it seems that large investors have their sights set on a price range for NVIDIA between $69.00 and $260.00 over the past three months.
Understanding Volume and Open Interest
Evaluating volume and open interest is vital for options trading. These indicators provide insights into the liquidity and interest level among investors for NVIDIA’s options at specific strike prices. The data below shows the changes in volume and open interest for call and put options linked to major trades in NVIDIA, reflected within a strike price range from $69.00 to $260.00 over the last month.
30-Day Snapshot of NVIDIA Options Volume and Interest
Highlighted Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NVDA | PUT | SWEEP | BEARISH | 02/21/25 | $10.90 | $10.85 | $10.90 | $140.00 | $519.90K | 28.5K | 4.1K |
| NVDA | CALL | TRADE | BULLISH | 08/15/25 | $19.90 | $19.75 | $19.88 | $140.00 | $298.20K | 5.5K | 220 |
| NVDA | CALL | TRADE | BULLISH | 06/20/25 | $19.35 | $19.20 | $19.35 | $135.00 | $290.20K | 21.4K | 515 |
| NVDA | CALL | SWEEP | BEARISH | 01/15/27 | $24.40 | $24.10 | $24.15 | $200.00 | $241.50K | 15.2K | 279 |
| NVDA | CALL | SWEEP | BULLISH | 01/17/25 | $4.30 | $4.25 | $4.28 | $134.00 | $218.30K | 14.7K | 3.3K |
Overview of NVIDIA
NVIDIA is a prominent developer of graphics processing units (GPUs). Initially, these components were used to enhance performance on computing platforms, particularly for gaming on PCs. Recently, GPUs have evolved into critical semiconductors that play a vital role in artificial intelligence applications. NVIDIA not only provides AI-focused GPUs but also offers software like Cuda, which is extensively used in AI model development and training. Furthermore, NVIDIA is broadening its solutions in data center networking, enabling the integration of GPUs to handle complex workloads.
As we review NVIDIA's options trading patterns, we shift our attention directly to the company’s current market positioning and performance.
Current Market Position of NVIDIA
- NVIDIA's stock is trading at around $134.94, experiencing a decline of 3.69%, with a trading volume of 49,589,254.
- Relative Strength Index (RSI) readings suggest that the stock is currently neutral, hovering between overbought and oversold conditions.
- The next anticipated earnings release is expected in 47 days.
Professional Analyst Ratings for NVIDIA
In the last 30 days, two professional analysts have evaluated NVIDIA, providing an average price target of $205.00.
Unusual Options Activity Detected: Noteworthy Moves by Market Experts
Various platforms highlight unusual options activity that could indicate future market movers. Significant positions being taken by large investors can be tracked for better insights. For instance, an analyst from Benchmark recently revised their rating on NVIDIA to Buy, setting a new target of $190. Meanwhile, another analyst from Rosenblatt maintains a Buy rating with a target price set at $220.
Options trading, while riskier than trading stocks directly, offers the potential for greater profits. Savvy options traders mitigate risks through ongoing education, carefully entering and exiting trades, relying on multiple indicators, and monitoring market conditions closely.
For those wishing to stay informed about the latest options trades for NVIDIA, tools exist that provide real-time trading alerts.
NVIDIA, Options, Trading