Institutional Investors Risk $75 Million on Nvidia Short Puts Ahead of May 20 Earnings
Updated
Updated · CNBC · May 20
Institutional Investors Risk $75 Million on Nvidia Short Puts Ahead of May 20 Earnings
1 articles · Updated · CNBC · May 20
$75 million-plus in two Nvidia short-put trades was placed just above the current share price, pointing to the $220-$225 area as a likely post-earnings support zone.
Options markets are pricing an 8.1% earnings move, and elevated implied volatility has shifted institutional flow from broad semiconductor hedging toward selling downside premium around company-specific catalysts.
Nvidia has pulled back toward its $215 breakout area before results due after the May 20 close, leaving traders focused on whether buyers defend that level and push the stock back toward recent highs.
The bullish setup rests on fundamentals as well: Nvidia is described as trading below the semiconductor peer-group valuation despite stronger growth, higher margins and AI-demand visibility tied to Blackwell, Vera Rubin and its OpenAI partnership.
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