Unusual Option Talks? Those close NVDA PUTs

Unusual Options of October 9th, $NVIDIA Corp(NVDA)$ accounted for a lot, with many end-of-day PUT orders.

The fundamental reason is clear:

Nvidia intends to announce three new chips for China, weeks after the company was restricted by the U.S. from selling two high-end artificial intelligence chips and another top gaming chip to Chinese companies.

Of course, this does not mean that the chip-ban has been broken. It’s just business. Jenson Huang is from Taiwan, and the business mode is much like asian.

Nvidia is also important for Chinese technology companies, as it is indispensable in AI competitions.

Therefore, the market's movement has already boosted Nvidia's stock price from less than 400 ten days ago to 480, the level of last report.

More importantly, the financial report will be released on October 21st, which will have a strong guiding effect on the entire AI sector.

The large orders on the 9th were concentrated around 465-480 PUT, and were mainly "closing orders."

1. PUT long positions (short positions) also fear short-term gains, especially as the US and Chinese president are meeting this weekend, which poses too much risk.

2. PUT short positions (long positions) also want to close out their positions, as short-term gains have already been relatively large, and many investors may not hold regular stocks over the weekend, so they may close out their positions on the 10th.

However, overall, as the financial report approaches, trading in NVDA is becoming more active.

Looking at the options expiring next week (during the financial report week), there is a large amount of open interest in the 500 strike calls, so it seems that there may be another "big wave" of volatility.