AAL

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.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.