OptionsHouse

Options Trading News

November 21, 2012  Wed 12:21 PM CT

NVDA: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Nvidia are near two-year lows, but an enormous trade is betting on an end to the bleeding.

More than 43,000 NVDA options trade, compared to the daily average of 7,500 in the last month. Puts outpace calls by 10 to 1 in today's session, with almost all of the action in the January 11 puts.

More than 37,000 of those contracts have traded against open interest of 3,513. Blocks of 18,000 and 17,500 were sold in a matter of seconds for the bid price of $0.36, according to optionMONSTER's tracking systems.

NVDA is up 2.35 percent to $11.76 in afternoon trading. Shares of he graphics-chip maker have been trending lower from above $15 in early August and were down at a low of $11.15 a week ago.

The put selling is a wager that NVDA will remain above $11 through the expiration. The trader is also willing to buy shares if they are below the strike, at an effective buying price of $10.64 including the credit from the put sale. (See our Education section)
Share this article with your friends


Related Stories

NVDA

Short-term bulls charge into Nvidia

March 18, 2015

The graphics-chip manufacturer gapped up after its last earnings report on Feb. 12 and yesterday closed just shy of four-year highs.

NVDA

How big investor is hedging Nvidia

March 16, 2015

The graphics-chip maker gapped up after reporting quarterly results on Feb. 12 and last Wednesday reached its highest intraday price since March 2011.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Free Webinar

Education & Strategy

Introduction to Theta

This week, we continue our discussion of the strike-based Greeks with Theta...

View more education articles »