Spotlight on NVIDIA: Analyzing the Surge in Options Activity

Author: Benzinga Insights | August 15, 2024 10:01am

Whales with a lot of money to spend have taken a noticeably bearish stance on NVIDIA.

Looking at options history for NVIDIA (NASDAQ:NVDA) we detected 271 trades.

If we consider the specifics of each trade, it is accurate to state that 43% of the investors opened trades with bullish expectations and 44% with bearish.

From the overall spotted trades, 39 are puts, for a total amount of $4,303,211 and 232, calls, for a total amount of $15,384,369.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $42.5 to $150.0 for NVIDIA over the recent three months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for NVIDIA's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across NVIDIA's significant trades, within a strike price range of $42.5 to $150.0, over the past month.

NVIDIA 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
NVDA	CALL	TRADE	BULLISH	09/20/24	$22.95	$22.8	$22.95	$100.00	$399.3K	62.5K	593
NVDA	CALL	SWEEP	BULLISH	08/30/24	$3.4	$3.35	$3.4	$130.00	$340.0K	38.0K	4.6K
NVDA	CALL	SWEEP	BEARISH	08/23/24	$3.75	$3.7	$3.71	$120.00	$271.2K	58.3K	23.8K
NVDA	CALL	SWEEP	BULLISH	08/16/24	$1.88	$1.85	$1.87	$120.00	$231.6K	116.1K	88.0K
NVDA	CALL	SWEEP	BULLISH	08/16/24	$2.22	$2.18	$2.22	$119.00	$222.1K	19.4K	36.0K

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.

Having examined the options trading patterns of NVIDIA, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Where Is NVIDIA Standing Right Now?

• With a volume of 39,976,538, the price of NVDA is up 0.8% at $119.03.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 13 days.

What Analysts Are Saying About NVIDIA

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $134.0.

• Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for NVIDIA, targeting a price of $140.
• Maintaining their stance, an analyst from Loop Capital continues to hold a Buy rating for NVIDIA, targeting a price of $175.
• Maintaining their stance, an analyst from Goldman Sachs continues to hold a Buy rating for NVIDIA, targeting a price of $135.
• An analyst from Deutsche Bank persists with their Hold rating on NVIDIA, maintaining a target price of $100.
• In a positive move, an analyst from New Street Research has upgraded their rating to Buy and adjusted the price target to $120.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest NVIDIA options trades with real-time alerts from Benzinga Pro.

Posted In: NVDA