Artem Voloskovets
A sudden wave of bullish options activity has reignited excitement around Nvidia ($NVDA). After weeks of sideways movement in the broader semiconductor sector, traders went all-in on long-dated Nvidia call options—signaling renewed confidence in the company's stranglehold on the AI chip market.
Massive $21.5M Flow into Nvidia $220 Calls
In a recent post, Flow God pointed out that traders funneled over $21.5 million into Nvidia $220 strike call options expiring in November 2025—one of the biggest options flows of the week.
According to Unusual Whales data, these contracts jumped nearly 58% during the session, climbing from around $2.69 to $4.25. The premium spike came with institutional-style order patterns, suggesting this was real accumulation, not just retail hype.
The chart from Unusual Whales shows an explosive afternoon breakout in call premiums. Prices spiked from roughly $3.00 to over $5.00 in just two hours before settling near $4.25. Volume was massive—over 20,000 contracts traded—and the heaviest buying hit around 1 p.m. and 3 p.m., classic institutional execution windows.
This surge likely reflects rising optimism around Nvidia's upcoming catalysts and its grip on the AI infrastructure boom. Here's what's driving the conviction:
- AI chip leadership: Nvidia dominates the AI data center GPU market, with new H200 and Blackwell chips expected to fuel record enterprise demand
- Expanding partnerships: Deals with Google Cloud, Oracle, and AWS are pushing Nvidia deeper into cloud infrastructure
- Macro rebound: The broader tech rally has brought back risk appetite, with investors positioning early for multi-quarter AI growth
- Long-term positioning: These $220 calls expire in over 12 months, pointing to sustained confidence rather than a quick trade
What's Next?
The options flow suggests traders are targeting a slow climb toward $220—near Nvidia's recent resistance zone. If earnings beat expectations, the stock could push toward $230–$240 over the next few months. If momentum stalls, premiums may hover around $4–$5 as traders wait for a 2025 breakout. The downside risk? Weak AI guidance could spark short-term profit-taking.
Historically, similar options activity before Nvidia's May and August 2024 earnings led to 10–20% rallies in the stock over the following weeks.
The 58% jump in Nvidia's $220 call premiums and the $21.5 million flowing into these contracts tell a clear story: traders are betting big that Nvidia's AI dominance isn't slowing down.
With earnings just weeks out and institutional money piling into bullish positions, the options market is flashing confidence that Nvidia could outperform again heading into 2025. Options trading is risky, but today's flow shows the smart money is positioning for strength—not weakness—in the world's most valuable AI chipmaker.
Artem Voloskovets
