Nvidia Soars After Earnings: Calls Point to More Upside | Smart Money Option

By Chancy

$NVIDIA (NVDA.US)$ surged nearly 9% after earnings, pushing toward $230. Q2 revenue and Data Center sales both beat expectations, while Q3 guidance also came in above consensus. More importantly, management expects FY2028 revenue to grow about 70%, well above Wall Street’s prior expectation of roughly 45%, strengthening confidence in the durability of AI demand.

Call Buying Picks Up as Traders Add Protection

Options activity turned clearly bullish following earnings. Nvidia’s volume put/call ratio fell to 0.47, with Call volume running at more than twice Put volume.

Large trades were concentrated in short-dated Calls. The September 4 $225 Call saw some selling early in the session, followed by stronger buying, including an 8,000-contract purchase worth about $3.79 million. Traders also opened 5,310 September 9 $230 Calls, positioning for further upside after the post-earnings rally.

The Put side also saw a notable trade: 9,200 September 4 $235 Puts were opened, representing about $11.22 million in premium. The deep-in-the-money Puts were executed as a cross trade, suggesting they could be part of an institutional hedge or broader strategy. The trade also shows that some investors are adding downside protection after the sharp rally.

$230 Becomes the Key Level

Gamma positioning highlights two important levels: $220 is the Put Wall, while $230 is the Call Wall.

With Nvidia approaching $230, the stock is now testing the most important upside level in the current options structure. After a nearly 9% post-earnings surge, consolidation around $230 or a pullback toward $225 would be a normal digestion of gains.

The key question is whether Nvidia can break and hold above $230. A sustained move through the Call Wall could open further upside, with $235–240 becoming the next area to watch.

Fundamentals remain supportive. Vera Rubin has entered production, AI infrastructure demand remains strong, and management’s FY2028 growth outlook already factors in supply constraints. Rising component and memory costs could pressure gross margins, however, making profitability an important risk to watch.

Conclusion

Nvidia’s post-earnings options setup remains bullish, although traders are also adding downside protection.

Call volume is dominating, buyers have remained active around the $225 strike, and new positions are building in the $230 Calls. If NVDA breaks and holds above $230, the post-earnings rally could enter a second leg toward $235–240. A pullback would keep the bullish setup intact as long as the $220–225 area holds.

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