NVIDIA Unusual Options Activity

Someone with a lot of money to spend has taken a bearish stance on NVIDIA NVDA.

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with NVDA, it often means somebody knows something is about to happen.

So how do we know what this whale just did?

Today, Benzinga's options scanner spotted 56 uncommon options trades for NVIDIA.

This isn't normal.

The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.

Out of all of the special options we uncovered, 21 are puts, for a total amount of $1,192,325, and 35 are calls, for a total amount of $3,433,805.

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What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $150.0 to $270.0 for NVIDIA over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for NVIDIA's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of NVIDIA's whale trades within a strike price range from $150.0 to $270.0 in the last 30 days.

NVIDIA Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

Where Is NVIDIA Standing Right Now?

• With a volume of 13,808,617, the price of NVDA is up 0.99% at $244.69.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 69 days.

What The Experts Say On NVIDIA:

• Rosenblatt downgraded its action to Buy with a price target of $320
• BMO Capital has decided to maintain their Outperform rating on NVIDIA, which currently sits at a price target of $255.
• Stifel has decided to maintain their Hold rating on NVIDIA, which currently sits at a price target of $225.
• Stifel has decided to maintain their Hold rating on NVIDIA, which currently sits at a price target of $207.
• Wedbush downgraded its action to Neutral with a price target of $216

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for NVIDIA, Benzinga Pro gives you real-time options trades alerts.