Computer video chip maker NVIDIA Corporation (NASDAQ:NVDA - 12.87) has made a decent recovery after dropping steadily in the first two weeks of the year, and Tuesday, bullish option traders paid heed. The equity saw roughly 31,000 calls change hands, nearly double the daily average.

Leading the way was the front-month March 13 call, which saw more than 21,000 contracts cross. A respectable number of these traded at the ask price, and open interest spiked significantly overnight, indicating that a good chunk of these were bought to create new positions. The volume-weighted average price (VWAP) was $0.21, meaning NVDA needs to close at or above $13.21(strike price plus VWAP) next Friday, March 15, for these options to make a profit. If NVDA shares don't climb the 1% necessary to overcome the strike price, all investors would lose is the premium paid. Currently, the delta for the trade stands at 0.41, meaning that it has about a 41% chance of finishing in the money.

As stated, NVDA shares are up more than 4% this year, and trending higher. It has climbed 7.9% since hitting its 2013 low in mid-January. And the stock's 20-day moving average, which was providing resistance earlier this year, is now supporting the stock at $12.60. Fundamentally speaking, the company's video chips are being used in the new Sony PlayStation 4 by Sony Corporation (ADR) (NYSE:SNE - 15.49), and that should provide new volume and new markets for NVDA.

Overall option trading sentiment has been bullish as well. The 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 6.36 -- and that relatively high number is higher than 66% of other readings taken in the last year. In other words, call buying is higher than usual in recent days. And the stock's Schaeffer's put/call open interest ratio (SOIR) is 0.33, which ranks only in the 29th percentile of similar ratings. That indicates a lower propensity for puts among options with fewer than three months until expiration.