Bonawyn Eison Sees Unusual Options Activity In Nvidia

On CNBC's "Options Action," Bonawyn Eison spoke about unusually high options activity in NVIDIA Corporation NVDA, which is due to report earnings Wednesday, after the bell. The options market is implying a move of 6.5% in either direction and it moves around 2.5% on the event.

About 1,000 contracts of the February $560/$600 call spreads were bought on Tuesday for just under $10, said Eison. The trade offers a four to one payout, he added. These options were bought during the sell-off on Tuesday, explained Eison. He said that they allowed traders to define their risk while trying to catch the falling knife.