NVIDIA Corporation closed at USD 190.01, down 3.55%.
A day of notable options activity saw a dominant $6.67 million bull put spread, signaling long-term confidence, while a $2.29 million bear call spread simultaneously capped upside expectations near the $200.00 level. The overall flow leaned bullish, with net bullish premium reaching $7.53 million, as institutional players positioned for support and stabilization amid elevated volatility.
>>>Unlock Earnings Insights & Commission-Free Trading Benefits !
Options Indicators
NVDA’s implied volatility is 48.16%, and with an IV percentile of 74.50%, current option volatility sits in an elevated zone, indicating that options are priced expensively relative to their own recent history. The IV/HV ratio of 1.25 further suggests implied volatility is running above realized volatility, reinforcing the view that the market is embedding a relatively rich premium into current option prices. The Call/Put volume ratio is 1.43.
Large Trades
A bullish bull put spread worth $6.67 million stood out as one of the day’s largest combination trades. The structure involved selling 4,000 December 18, 2026 $170.00 puts and buying 7,000 December 18, 2026 $140.00 puts, with both strikes out of the money versus the $190.01 stock reference. As a bull put spread, this is a net credit strategy and reflects premium collection with a constructive directional view, expressing confidence that NVDA can stay above the higher short-put strike over time while using the lower long puts as downside protection.
A bearish bear call spread worth $2.29 million was the other highlighted large combination. This trade sold 5,000 August 7, 2026 $200.00 calls and bought 5,000 August 7, 2026 $207.50 calls, with both call strikes also out of the money relative to the current stock price. This is a net credit strategy designed to collect premium while capping upside risk, signaling a bearish-to-neutral outlook that NVDA is unlikely to rise through the $200.00 area by expiration.
The directional judgment is moderately bullish, as the aggregate flow shows buyers and premium sellers were more willing to position for downside support and stabilization than for sustained upside pressure, even though meaningful bearish call-spread activity and call selling show some resistance expectations above current levels. In sum, institutional positioning suggests confidence that NVDA can hold up or grind higher, but with upside expectations still somewhat capped by visible overhead call exposure.
Strategy Reference
For premium sellers looking to capitalize on elevated IV, a neutral-to-bullish approach could involve selling the December 2026 $140.00 put to collect rich premium with a low assignment probability, or deploying a wider bull put spread like the $170.00/$140.00 structure to reduce margin requirements while maintaining a constructive outlook.
Comments