NVIDIA Options Traders Betting On Further Upside Into September

Shares of NVIDIA Corporation NVDA surged to an all-time high on Thursday after the company reported better-than-expected second-quarter financial results and issued strong revenue guidance for the third quarter. However, the stock was only 0.1% higher at the close on Thursday.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said NVIDIA was the most active single stock option on Thursday, with calls outpacing puts by 3 to 2.

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There were buyers of 34,000 of the September 1 weekly 500-calls at an average price of $8.12 per contract, Khouw mentioned.

Traders see NVIDIA’s shares moving higher through the beginning of September.

Nvidia’s second-quarter non-GAAP earnings per share rose 429% year-over-year from 51 cents to $2.70. Sequentially, the measure improved 148% from the previous quarter’s $1.09 per share. Analysts, on average, expected the bottom-line result to come in at $1.91.

Price Action: NVIDIA shares gained 0.1% to close at $471.63 on Thursday.

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