NVIDIA's Stock Stalls Ahead of Shareholder Meeting: A Look at Potential Catalysts and Option Opportunities

by Steven Gao

Takeaway: This article outlines key projected events for NVIDIA that are worthwhile eyeing in the second half of the year and analyzes the potential option trading opportunities.

NVIDIA's annual shareholder meeting is scheduled on June 25. Yet the stock price shows unusual calm during the past month. Since its earnings release on May 28th, NVIDIA's share price has seemingly "stalled" over the past month, trading sideways within a very narrow range and lacking direction.

Meanwhile, the trading volume has also dwindled. The monthly trading volume of May stood at $613 billion, representing a 35% year-over-year decline compared to the trading volume of last May.

Indeed, NVIDIA currently finds itself in a lull period across news flow, earnings catalysts, and capital activity. However, the second half of the year holds several highlights worth watching. For investors, using this relatively low volatile period to construct trading ideas might yield returns when market volatility rebound to normal levels.

1. New Product Launches: GB300 & B300 Series Chips

As projected, the GB300 entered mass production by the end of this year. Details regarding its performance and adoption should be reflected in the next earnings report. The GB300 integrates 72 Blackwell Ultra GPUs, fully interconnected via NVLink, delivering 1.4 exaflops of AI inference performance (FP8 precision). It targets hyperscale AI factories (e.g., cloud giants, national AI facilities), enabling the deployment of complex agent-based AI tasks (like multimodal inference, scientific simulation) within a single rack.

Also notice the single GPU, B300, which is scheduled for mass production in Q4 2025, meanwhile the 16-GPU cluster solution, HGX B300 NVL16, is planned for mass production in Q1 2026.

In terms of architecture cadence, NVIDIA intends to maintain its roughly annual update cycle. The new architectures Vera Rubin, Rubin Ultra, and Feynman are slated for release in 2026, 2027, and 2028 respectively.

2. Order Book from Major CSPs

Based on the latest public data, full-year capital expenditure (CapEx) plans of the four major US cloud service providers (namely Microsoft, Google, Amazon, and Meta) amount to as much as $300 billion. As of Q1, the spending of them had amounted to $81 billion.

Regarding CapEx, Jensen Huang has consistently emphasized the efficiency argument: "The more you buy, the more you save." Blackwell's high performance lowers the Total Cost of Ownership (TCO) for AI factories.

Analysts suggest driven by the explosion in AI inference demand and the increasing requirements of AI agent, global data center infrastructure investment will surpass $1 trillion by 2028.

Furthermore, as Jensen Huang articulated at this year's GTC conference, AI is evolving from "AI Agent" to "Physical AI" – where robots understand the physical rules of the real world. This progression will drive the adoption of more advanced forms of artificial intelligence, consequently fueling even greater demand for computing power.

3. Options Trading Strategies

(1) LEAP Call Strategy

Ultra-long-term, deep in-the-money call options, which is also known as LEAPS (Long-term Equity Anticipation Securities) call, is a strategy that can be used when an investor is bull on the long term trend of a stock.

So, how long the options term, and how far away the strike price should be for a call option to be considered as a "LEAPS call"? Generally, the term should be one year or longer, and the strike price should be less than half of the current price.

What are benefits of a LEAPS call? The first one is lower risk and fluctuation compared to other "ordinary" calls. Actually, due to the extremely far strike price, the effective leverage ratio is generally low, which reduces the fluctuation of option price and make it easier for investors to hold it longer.

Also, as it's deep in-the-money, the time value is very compressed; and because the term is extremely long, the time decay will also be slow.

The drawback of LEAPS calls is they tend to be expensive, compared to short-term non deep in-the-money ones. And the bid-ask spreads are also greater, which decreases the liquidity of LEAPs calls.

Click the link below to get further information on LEAPS: LEAPS: A Longer Term Options Strategy

(2) Cash-Secured Short Put

Although Nvidia has shrunk its implied volatility (IV), from above 50 to therebelow, resulting in a shrinking option premium that is collected by its seller. But there are still strategies investor can use to reduce the cost of holding stock or collect the premium without being exercised.

For instance, if the stock price fells below the strike, then the option would be exercised and the investor is obliged to buy the stock at the strike price. But the premium he collected can reduce his cost and his real cost is much lower than the strike price.

On the contrary, if the stock price remains above the strike price until option's maturity, then the investor can just put the premium back to his pocket.

Of course, the investor can avoid the risk of being exercised by pushing the strike price low enough compared to the stock's spot price, which would allow him to entirely collect the premium of the option – like collecting the stock's "dividend".

For more on options selling strategies, please refer to our investor education courses. Cash-Secured Put

Learn more about options! How to access? Go to Moo community >> More >> Option Playbook

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. Opening new options positions close to or on their expiration date comes with substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. 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 i potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request.

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