OptionsDelta
10-22

$Nvidia (NVDA)$

On Monday, call option opening volumes for Nvidia significantly outpaced put volumes across the board.

Ranked by open interest:

The $150 calls expiring this week had 157,400 contracts outstanding, with 31,000 new openings on Monday.

The $142 calls expiring this week had 130,000 contracts open, with 4,569 new openings.

The $148 calls expiring this week had 113,800 contracts open, with 13,800 new openings.

The $145 calls expiring this week had 71,700 contracts open, with 22,600 new openings.

The $140 calls, now in-the-money, saw open interest decline to 59,200 contracts as 12,000 contracts were closed out - likely due to the ramp above $140 leaving sellers defensively closing.

This dynamic has me considering selling $140 puts ($NVDA 20241025 140.0 PUT$ ) as a potential play.

Seeing the $143.71 close, I was a bit disappointed the institutional trader didn't roll into $145 calls for a potential 100,000 contract catalyst. But given the current bullish sentiment, the $145 strike could reach 6-figures by tonight's open.

I'm not getting greedy though - a move to $146 tonight followed by a push to $148 on Wednesday would be ideal. If not this week, the uptrend should continue into next.

I also noticed the two "old friends" from last week continuing to add to their $180/$190 call spread - the $NVDA 20241220 180.0 CALL$  bought and $NVDA 20241220 190.0 CALL$  sold for another 20,000 contracts on Monday.

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