Will Options Bears Begin to Bite At Nvidia Stock?

NVDA has shed more than 6% in the last two trading sessions

Deputy Editor
Mar 11, 2024 at 1:25 PM
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Nvidia Corp (NASDAQ:NVDA) just last week became the world's third-most valuable public company, thanks to its pole position as a leader in artificial intelligence (AI).  Due to this, the 'Magnificent Seven' member keeps a reserved spot on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that attract the highest weekly options volume over the preceding two weeks.

NVDA once again took the second-place spot on White's weekly list. Over the last 10 trading days, 10,743,406 calls were traded compared to 6,850,206 puts, the latter seeing an uptick from the last time we covered Nvidia stock's options activity. The weekly 3/8 900-strike call still stood out as the most active contract.

MAO Chart March 112024

It's no surprise that calls rule the roost, considering the 75.7% year-to-date gain. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 1.52 ranks higher than 87% of readings from the past 12 months.


But NVDA was last seen down 0.6% to trade at $870.34, and shed 5.5% on Friday after hitting a record high of $974 earlier that morning. Going forward, it will be interesting to circle back and see if put traders continue to grow bolder. 


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