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

Opposite positions taken in Nvidia

July 17, 2015

The graphics-chip maker has fallen amid growing concerns over slowing PC sales but has been consolidating at current levels in the last two weeks.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Put/Call Parity

Once you have learned and understood the concepts of Synthetic Positions and Reversal/Conversion, you have mastered the idea that options are truly mathematically based...

View more education articles »