Synopsys Stock Pops on Nvidia Partnership

Synopsys Inc (NASDAQ:SNPS) stock is on the rise, last seen up 4.6% to trade at $437.27, after reports that Nvidia (NVDA) has invested $2 billion in the electronic design automation name as part of a new partnership. The pair will develop AI-powered tools across several industries, while Synopsis will integrate Nvidia's developer instruments and code libraries into its applications. 

On the charts, SNPS is quite a ways off from its July 30 record high of $651.73, struggling to recover from its sharp September post-earnings bear gap. Though the shares are headed for their third-straight daily win, the 60-day moving average appears to be keeping gains in check. Year to date, the equity is down 9.4%. 

Options bulls have been betting on a rebound. SNPS' 50-day call/put volume ratio of 2.35 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 82% of readings from the past year. 

SNPS tends to outweigh options traders' volatility expectations, per the stock's Schaeffer's Volatility Scorecard (SVS) of 95 out of 100 -- a boon for options buyers.