Nvidia Draws 1.5 Million Call Trades as Chip ETF Sinks 5% on Delay Report
Updated
Updated · CNBC · Jul 7
Nvidia Draws 1.5 Million Call Trades as Chip ETF Sinks 5% on Delay Report
3 articles · Updated · CNBC · Jul 7
Summary
More than 1.5 million Nvidia call options traded Tuesday versus fewer than 690,000 puts, even as the stock hovered just under $200 after a report said its next-gen Kyber server rack was at least a year behind in manufacturing.
That bullish positioning stood out because the broader chip sector was under pressure: the VanEck Semiconductor ETF fell 5%, and SMH put volume outpaced calls by nearly four to one.
Options buyers were not just active but directional, with more than twice as many Nvidia calls bought as puts; on Monday, about two-thirds of $600 million in NVDA options premium was tied to calls after Nvidia disputed the SemiAnalysis delay report.
A single trader appeared to spend $3.5 million on July-end $200 calls, while the most-traded contract Tuesday was the $200 strike expiring Wednesday, changing hands nearly 170,000 times for about $11 million in premium.
The activity suggests traders are betting Nvidia's two-day stabilization can turn into a rebound, even with the shares still down 17% from their May record and up only 4% this year.