Bullish Bet On NVDA

Nvidia stock rallied from late August to early September after the chipmaker beat second-quarter expectations. Nvidia earnings showed sequential growth across its platforms, boosting hopes for a recovery. And now one option trader is betting the company’s stock price will rise sharply into the year-end.

Nvidia stands at the forefront of artificial intelligence and machine learning, powering a future of self-driving cars and cloud gaming. The company pioneered graphics processing units to make video games more realistic. It’s shifting to artificial intelligence chips, which have new and expanding uses in supercomputers, data centers and driverless cars.

One trader is betting that all of these strategic and technical advancements will result in positive earnings surprises later this quarter. The trader purchased 1000 of $220 of 20 Dec’19 calls on Friday paying $214K for his bullish bet.

NVDA, Daily

Here are the trade’s details:

  • The transaction was registered at 12:18pm PST (or 15:18pm EST)
  • The calls were bought in one lot of 1000 contracts
  • The calls were bought at the ask price of $2.14 ($2.10 bid – $2.14 ask)
  • The volume was higher than the open interest which indicates that this was a new position placed on Friday

NVDA, Time and Sales

NVDA, Option Chain

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