$NVIDIA (NVDA.US)$ bears are selling millions of dollars in ...

105336001 commented on a stock · Dec 18, 2024 03:19

$NVIDIA (NVDA.US)$ bears are selling millions of dollars in call options that could be profitable if the stock stays on a downward trajectory through early 2025.

On Monday, Nvidia logged its seventh decline in eight sessions, taking its losses from a record close to more than 10%. That meets the technical definition of a correction. The market leader in chips that power artificial intelligence applications (AI) extended its losses, falling another 1.6% to $129.86 at 1:34 p.m. Tuesday.
The pullback came after the stock climbed more than 200% in the 12 months through early November, when it recorded its all-time closing high. That stellar rally came ahead of the company's ninth straight quarterly earnings beat, buoyed by strong demand from hyper-scalers competing for supply of powerful AI chips.

The rally stalled amid worries over how long Nvidia can maintain its wide lead over its rival chipmakers. While its quarterly revenue growth has slowed from 265% in its January 2024 quarter to 94% in the three months ended October, that expansion is still the fastest among its peers….

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