Account Info
Log Out
Log in to access Online Inquiry
Back to the Top
Nvidia's 2024 AGM highlights: Pay packages and new AI market strategies
Views 5.4M Contents 2356

Nvidia Sees $150M Call Option Block Trades That May Signal Optimism Rally Can Last

Luzi Ann Santos joined discussion · Jun 6 11:08
$NVIDIA(NVDA.US)$ saw $150 million in combined block trades in call options that may signal optimism that there could be more juice left to the meteoric rise of the AI-favorite.
Nvidia's record-breaking rally pushed its market capital above $3 trillion yesterday, surging past Apple to monetarily become the second most-valuable company.  While shares are down 1.7% at $1,203.73 as of 11:41 a.m. in New York Thursday, the price is still more than triple its level a year ago.
The frenzy was fueled by investor enthusiasm as Nvidia continued to deliver quarterly financial results that blew past estimates amid surging demand for chips that power artificial intelligence applications. Adding to the excitement was the 10-for-1 stock split set to be implemented after the market closes tomorrow, making Nvidia more accessible to retail investors.  
Source: moomoo PC app
Source: moomoo PC app
At 10:34:04 a.m. in New York Thursday, two block trades were posted for call options expiring Dec. 18, 2026. In one of the trades, the buyer paid a premium of $71.67 million for options that give the holder the right to buy 417,000 Nvidia shares at $2,280 each.
In the other trade, a seller stands to collect a $78.67 million premium for writing call options that give the holder the right to buy 278,000 shares at $1,640 each.
Of course, the number of shares and the strike price will adjust according to the stock split once it's implemented after the close Friday. When trading resumes on June 10, in general, Nvidia holders will get nine additional shares for every share they owned prior to the stock split while the price will be 90% below the close on June 7. Read here to learn more about stock splits.
Source: moomoo PC app
Source: moomoo PC app
Not everyone is bullish. Before 11 a.m., six block trades were posted where buyers paid a combined $16.26 million in premiums that could shield the holders from a potential correction in the stock price.
The biggest of those block trades was for put options that give the holder the right to sell 169,000 Nvidia shares at $1,100 by July 19. The seller stands to collect a $5.03 million premium for writing those options.
As of 11:27 a.m., Nvidia saw a net capital outflow of $1.07 billion, with small orders leading the charge, data compiled by moomoo showed.
Source: moomoo PC app
Source: moomoo PC app
Eleven of the 15 technical indicators tracked by moomoo are already signaling that the stock is overbought, and the trend could turn bearish. But of course, technical indicators aren't always correct in predicting the next direction that a stock price will take.
Source: moomoo mobile app
Source: moomoo mobile app
Mobile users can click here for Nvidia's options chain. Share your thoughts on Nvidia below.
Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
Sign in to post a comment