A Closer Look at NVIDIA's Options Market Dynamics

Deep-pocketed investors have adopted a bullish approach towards NVIDIA NVDA, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in NVDA usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 63 extraordinary options activities for NVIDIA. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 46% leaning bullish and 42% bearish. Among these notable options, 2 are puts, totaling $293,799, and 61 are calls, amounting to $4,804,303.

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 $130.0 to $155.0 for NVIDIA over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $130.0 to $155.0 in the last 30 days.

NVIDIA 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

About NVIDIA

Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.

After a thorough review of the options trading surrounding NVIDIA, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of NVIDIA

• With a trading volume of 85,940,636, the price of NVDA is up by 1.88%, reaching $146.88.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 64 days from now.

What Analysts Are Saying About NVIDIA

5 market experts have recently issued ratings for this stock, with a consensus target price of $169.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on NVIDIA with a target price of $170. * Maintaining their stance, an analyst from DA Davidson continues to hold a Neutral rating for NVIDIA, targeting a price of $135. * An analyst from Benchmark has revised its rating downward to Buy, adjusting the price target to $190. * Consistent in their evaluation, an analyst from Piper Sandler keeps a Overweight rating on NVIDIA with a target price of $180. * An analyst from Mizuho persists with their Outperform rating on NVIDIA, maintaining a target price of $170.

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.