'Death Cross' Panic? Jim Cramer Wonders If Zero-Day Puts Are Driven By Confusion. 'They Don't Know The Difference Between Nvidia and Nivea'

Nvidia NVDA shares flashed a technical warning sign last week, and it didn't take long for the chatter to pick up. The stock triggered what's known as a “death cross” on March 20. That signal often suggests a potential downtrend, especially after the kind of monster run Nvidia has had.

Since October 2022, Nvidia has surged 948%, so this kind of chart movement grabbed attention. But not everyone is convinced it spells doom.

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Not The First Rodeo For Nvidia

Back in April 2022, Nvidia also flashed a death cross, and the stock went on to fall 47% before bottoming out. Naturally, investors are wondering if history is about to repeat itself.

While analysts are debating what the signal means, Jim Cramer took a more blunt approach. On March 21, the CNBC host posted on X: “Are the zero-day put options holders blowing them out or pressing their bet because of the death cross. I ask because they don’t know the difference between Nvidia and Nivea.”

Are the zero day put options holders blowing them out or pressing their bet because of the death cross. I ask because they don't know the difference between Nvidia and Nivea

— Jim Cramer (@jimcramer) March 21, 2025

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It was classic Cramer—mixing market commentary with sarcasm. His post suggested that many traders are reacting without truly understanding the stock or the signal.

In January, Cramer urged investors to consider Nvidia’s stock decline as a buying opportunity, saying, “Understand one thing, the keynote dazzled, the new projects are way ahead of any other company, and this new industrial revolution belongs to Nvidia.”

Zero-day options, especially puts, are popular among short-term speculators. Whether they're making sharp calls or just following headlines remains to be seen. But Cramer's point was that not every bearish bet is well-informed.

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For now, Nvidia is holding up. After dipping briefly, shares bounced back a little bit. Whether that death cross turns into something bigger or just becomes a blip on the radar will depend on how the market—and Nvidia's fundamentals—evolve in the coming weeks.

What Is a Death Cross and Why Does It Matter?

A “death cross” happens when a stock’s short-term moving average, typically the 50-day, falls below its long-term average, often the 200-day. It can be seen as a sign that momentum is fading and that the stock might be entering a longer-term downtrend. While it’s not always a sign of trouble ahead, it tends to get attention from technical analysts and traders looking for signals about where the market might be headed next.

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