EARN25

NVIDIA Corporation (NVDA) Traders Bank on a Quick Bounce

NVIDIA Corporation options traders are focusing on weekly calls today

Oct 21, 2014 at 1:53 PM
facebook X logo linkedin


Short-term call traders are taking aim at NVIDIA Corporation (NASDAQ:NVDA) today, as call volume on the chip stock surges to roughly 18,000 contracts -- representing four times the usual intraday level. The most active option is NVDA's weekly 10/24 18-strike call, where 6,584 contracts have crossed the tape.

Most of these weekly options have traded near the ask price, and open interest at this strike totals just 2,137 contracts. In other words, it looks like speculative players are buying to open new bullish bets here today. By doing so, they're betting on NVDA to rally beyond $18 through the end of this week, when these calls are set to expire.

Shares of NVIDIA Corporation (NASDAQ:NVDA) have rallied 12.7% year-to-date, and they're up 2.8% this afternoon to trade at $18.06. However, there's a looming challenge overhead in the form of NVDA's 200-day moving average, currently docked at $18.23. This formerly supportive trendline was breached earlier this month, and could serve as an obstacle for the stock during the short term.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!