Nvidia Stock Bounces Back On 2 Big Analyst Price Targets

Nvidia options are attractively priced at the moment

Managing Editor
Jun 26, 2018 at 9:53 AM
facebook X logo linkedin


For the second time in two weeks, Nvidia Corporation (NASDAQ:NVDA) received bullish commentary from the analyst community. This time it was Benchmark that initiated coverage on the chip name with a "buy" rating and $280 price target. The analyst in coverage noted that NVDA is in "the middle of many of the hottest computing trends," boasting about the company's data center business in particular. Meanwhile, FBN Securities weighed in with a fresh "outperform" rating and $300 price target.

At last check, NVDA was up 2.3% to trade at $244.69, meaning even the lower price target from Benchmark represents a 14.4% premium to the stock's current perch. On the charts, Nvidia stock has continued to outperform, rising 60.6% year-over-year, with recent pullbacks contained by its 30-week moving average. The shares hit a record high of $269.20 back on June 14.

Despite the recent run of bull notes, brokerages are still split on the stock. Of the 25 analysts covering the security, 10 still rate it a "hold" or "strong sell." While NVDA's consensus 12-month price target sits at $280.03, there is still clearly ample room for more upgrades to the surging chip stock.

Options buyers have preferred calls in the past 10 days. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Nvidia stock has racked up a 10-day call/put volume ratio of 1.74-- in the elevated 79th annual percentile. This indicates that traders have bought to open NVDA calls over put at a faster-than-usual clip during the past two weeks.

Digging deeper, the July 265 call saw the largest increase in open interest during this time frame. According to data from the major options exchanges, the majority of the activity at this strike has been of the buy-to-open kind, indicating options traders are banking on NVDA to vault higher within the next three weeks. 

Meanwhile, now's a great time to target short-term options on the semiconductor concern. This is according to its Schaeffer's Volatility Index (SVI) of 35%, which ranks in the 16th percentile of its annual range. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI