Peter Smith
Nvidia continues to be a focal point for options traders, with unusual activity indicating strong conviction among institutional investors. Even as contract prices face near-term pressure, the substantial volume in long-dated call options suggests sophisticated traders are positioning for a significant upward move in the coming months.
NVDA Price Action Sees Bold Call Buying
The options market is showing some interesting moves that have analysts talking. Trader @FL0WG0D pointed out that over $2.5 million worth of $170 call contracts for September 12, 2025 were bought up, even though the contract prices fell to $4.04 - that's an 18% drop for the day.
This kind of aggressive buying when prices are falling tells us that big players are willing to take short-term hits because they're betting on NVDA bouncing back stronger in the coming weeks and months.
Looking at the charts, NVDA is sitting just above its key support level at $169. The next big test will be breaking through resistance around $178-$180. If it can clear those levels, those call options could quickly swing back into the green, which would match the bullish sentiment we're seeing in the options flow.
The big spike in trading activity suggests that smart money might be getting ahead of a major move, with volatility likely to pick up as we get closer to the contract expiration date.
What NVDA Traders Should Watch Next
This surge in call buying shows the market still believes in Nvidia's dominance in AI chips, data centers, and GPU technology. The options traders are clearly betting that this leadership will keep driving the stock higher.
For this bullish bet to pay off, NVDA needs to stay above that $169 support level. If it does and momentum builds, those $170 calls could turn profitable fast, giving traders huge leveraged gains. But if the stock breaks below support, we might see another sell-off before buyers come back in.
Peter Smith
