Peter Smith
With Nvidia's earnings report just hours away, options traders are making their boldest bets yet. The AI chip leader has attracted massive bullish positioning, as investors gear up for what could be another market-moving quarter.
Nvidia (NVDA) Price Gathers Momentum Ahead of Key Earnings
Nvidia is back in the spotlight as traders prepare for tomorrow's earnings release. The AI chip giant closed near $181.71 after touching $183 during the session, while options activity tells a compelling story of bullish conviction.
Market analyst @AndrewHiesinger reported that traders dropped over $30 million on short-term call options today, dwarfing the mere $6.61 million spent on puts. This lopsided betting suggests Wall Street expects Nvidia to deliver another knockout quarter.
Options Market Favors NVDA Bulls Over Bears
The numbers speak volumes:
- Calls: $30.06M in premiums
- Puts: $6.61M in premiums
- NVDA price: $181.71
This 5-to-1 ratio shows traders are willing to pay premium prices for upside exposure while largely ignoring downside protection. Call buying intensified throughout the afternoon, while put activity remained flat—a clear sign that bears lack conviction despite the stock's recent run.
Tomorrow's earnings will determine if this bullish positioning pays off. Analysts expect strong AI chip revenue to drive another solid quarter, potentially pushing NVDA above the $185-$190 resistance zone.
But the risks are real. Disappointing results or cautious guidance could trigger a sharp selloff as traders dump their short-term call positions. Either way, Nvidia's report will likely set the tone for the broader tech sector and could impact major indices like the QQQ.
Peter Smith
