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NVDA Gets Another Bull Note to End 2019

Near-term options traders are split on NVDA

Dec 31, 2019 at 10:34 AM
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Few stocks have benefited from the trade tailwinds as much as chipmaker Nvidia Corporation (NASDAQ:NVDA), and the shares are in focus again today thanks to another bull note. This time it was Benchmark that weighed in, raising its price target to $275 from $240. This doesn't quite represent record-high territory for the shares, as they traded up to $292.76 back in October 2018, but it is 17% above current levels.

At last check, NVDA stock was trading 1.1% higher at $234.89. As the broader market turned lower on Monday, the equity followed suit, closing lower for a second straight day and notching the first close below the 10-day moving average since Dec. 9. NVDA was last seen trading just below this trendline.

Options data on NVDA shows a split among near-term traders, based on the Schaeffer's put/call open interest ratio (SOIR) of 0.97. In other words, put open interest and call open interest is almost equal for contracts expiring within three months. Looking back at just the past 10 days, the January 2020 230-strike put has seen the largest increase in open interest. Anyone buying the contract would be betting on the GPU specialist moving back below $230 in the coming weeks.

 

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