To The Moon

The current big move in Nvidia options is like bulls and bears throwing nuclear weapons at each other. If the first two days were a test run, Thursday was a declaration of war. A 5% correction is like this. I wouldn't even dream of a 10% correction.

Four sets of big orders, the bulls feel a little stronger.

sell call

sell $NVDA 20230616 420.0 CALL$

The volume of options traded was 5,229 lots with a total turnover of 3.8 million, and the seller's margin reached more than 60 million. After multiple verification, it is indeed a single leg sell call open position, the exchange where the order transaction is more mainstream. Traders' main logic is that there will be a period of volatility in stocks that jump sharply, and that new resistance levels will also take several attempts to break through, which is high credibility in several ways.

It is not recommended to try a single leg sell call at this strike price, only as a trend reference.

Call spread strategy

buy $NVDA 20230721 500.0 CALL$

sell $NVDA 20230721 550.0 CALL$

The single-leg volume was more than 9000 lots, the total volume of calls with a strike price of 500 was more than 4 million, and the total volume of calls with a strike price of 550 was about 2 million. After hedging, if Nvidia had not surged in July, it would have lost more than 2 million.

So what's the good news or the big news in July?

buy put

buy $NVDA 20251219 380.0 PUT$

I usually don't care much about big orders after 2024, because it feels like you can't afford to play, but these two days some agencies are batching out options for 2024-2025 to a degree that can't be ignored. It's worth the mark.

sell put

sell $NVDA 20251219 330.0 PUT$

sell $NVDA 20251219 400.0 PUT$

The sell put volume at the 330 strike price above was as high as 13,000 lots and the annualized yield to maturity was 6.11%. It is also a way to painlessly allocate AI positions at high levels. It can also be seen that 330 is the bottom line of the institution. Of course I think most people think that by the end of 25 Nvidia might be more than 330 or 400.

Tesla and meta

$TSLA 20240621 160.0 PUT$

$TSLA 20251219 160.0 PUT$

$META 20240621 210.0 PUT$

$META 20251219 210.0 PUT$

The number of these four large single option orders reached more than ten thousand, and the turnover reached ten million level. And it's all out of price. Strike price selection is also very uniform, all are April lows.

But the direction is really hard to tell, because options are not very liquid so it's hard to tell by the bid-ask bias. But even if it is impossible to tell which way to buy or sell, the volume of out-of-the-money puts traded at high prices suggests that institutions are becoming conservative. Let me label it.